On the implementation of new accounting standards on the quality of accounting information on the impact of net _ to write papers

Net write papers: Abstract: China's new accounting standards from January 1, 2007 began to implement the new guidelines for the implementation of enterprise accounting information provided by both a positive impact, but also new challenges, companies must in-depth understanding of the meaning of accounting standards, focusing on strengthening the quality of listed companies 'financial information requirements to reflect the assets and transactions on a more fair, to increase investors' confidence in the reliability of corporate financial information, listed companies in China to promote the quality of financial accounting information further enhanced to adapt to Economic globalization and capital market for high-quality financial accounting information needs. The paper analyzes the implementation of new accounting standards on financial and accounting information and its positive impact on the quality of the test, made an accurate, rational use of new accounting guidelines to ensure the quality of accounting information recommendations.

Keywords: new accounting standards; implementation; accounting information; quality; impact

February 15, 2006, the Ministry of Finance issued a circular, announced January 1, 2007 at the listed companies in the first implementation of new Accounting Standards (hereinafter referred to as the "new guidelines") The new guidelines cover the current Economic activities of enterprises in many aspects, in the recognition and measurement of assets, disclosure and so closer to international practice, while the new guidelines also clearly defines the quality of accounting information, which is to improve all kinds of enterprises, especially financial and accounting information of listed companies quality have a positive effect, however, affected by various factors, the new guidelines after the implementation of accounting information quality is also facing a severe test in 2007, the organization of the Ministry of Finance in respect of accounting information quality check found a few companies made serious accounting false behavior, in particular in: First, the cost of cosmetic results adjustable income, such as early or delayed recognition of revenue resulting in the adjustment of profits between different years, free to change the expected useful life of fixed assets, depreciation expense adjustment for the same transactions using different measurement model to determine the fair value of the illegal back to previously recognized impairment loss, etc. The second is the use of related-party transactions to transfer profits, such as large debt waiver by parent or other means to make large donations, direct transportation to the profits of listed companies, to help listed company to profitability. Third, the Economic operations of the system by fictitious fraud. Some listed companies and associated companies with collusion by means of bogus contracts and other systematic fraud, fictitious business income, the financial statements, profitable real loss. Over a number of phenomena, with the departure from the purpose of the new guidelines, reducing the quality of accounting information, hinder the healthy development of capital markets, resulting in the reasons for these phenomena, both business-to-understand guidelines are biased, inaccurate judgments, do not place objective reasons, there are a few companies control the use of accounting profits, fictitious transactions, the subjective intent of accounting fraud. To this end, enterprises, especially listed companies, new standards must be in-depth analysis of the impact on the quality of accounting information to continuously improve the transparency of accounting information, for investors, creditors and other users of accounting information to provide a reliable basis for rational decision-making.


1 "new guidelines" implementation of the positive impact of accounting information quality

1.1 Optimization of the accounting information environment, effectively preventing the distortion of accounting information systems:
Major organized internal environment of accounting information systems and personnel. A high reliability of the internal control environment is the formation of reliable, high-quality accounting information base. Implementation of new guidelines, changes in the original accounting treatment processes to the business's internal control procedures, systems and methods put forward new demands, companies must follow new guidelines for establishment of a system of internal control system, the implementation of more business management needs of the internal control processes; In addition, the implementation of the new guidelines need to be more professional judgments, the quality of corporate financial officers to promote the overall level of improvement.

1.2 improve the transparency of accounting information, is conducive to rational decision-making of accounting information users:
Based on information users need clear, objective information to reflect changes in the market rational decision-making. The implementation of new accounting standards, the use of fair value measurement basis, so that timely accounting information to reflect changes in corporate assets behind the business risk, asset quality and more reliable quantity while enterprises in order to provide such dynamic information, the risk is bound to establish a timely warning system to support the fair value of the use of accounting information users can access through the risk early warning system more comprehensive and objective accounting information to rational decision-making.

1.3 strengthen the financial management function of tax planning, macro-Economic management to promote the standard management.

New guidelines on income recognition, asset valuation, the fair value of the use of capital and cost of treatment and many other aspects of tax provisions with a difference, companies need to be analyzed to determine the difference between the two, on the one hand, in accordance with the requirements of accounting standards, the correct calculation of accounting income, the other hand, in accordance with the provisions of the relevant tax laws correctly calculate the tax. enterprises both income and expenditure according to income statement recognition of income tax, or according to the balance sheet recognition of assets and liabilities for each basis, accounting for deferred income tax assets and deferred income tax liabilities legitimate need-based tax administration, which strengthen the financial management function of the tax, also contributed to macroEconomic management, further standardization, rationalization.


2 new implementation of the guidelines on accounting information quality test

2.1 The new guidelines for the introduction of fair value measurement method, increasing the operating results of the instability, but the "fair value" may be adjusted profits.

The purpose of the implementation of new accounting standards is to provide accounting information to more truly reflect the economic substance of business, and making more useful, therefore, the full introduction of new accounting standards, the fair value measurement attribute, giving the company greater autonomy, the company can adjust to economic changes in accounting policies expected, while the new standards system in the investment real estate, non-business combination under common control, debt restructuring in the fair value and allow the debtor to confirm the reorganization proceeds, non-monetary transactions to fair value for the assets and confirm replacement income, etc. However, to determine the fair value of the subjective and arbitrary, thereby increasing the Links to free download http://www.hi138.com the operating results of the instability, " fair value "may be adjusted profits.

2.2 The new guidelines on the provision for impairment of assets, a number of asset impairment provision shall not be back, blocked the way listed companies to manipulate profits, but also may lead to asset accounts and reality.

Implementation of new guidelines expand the scope of impairment of assets: business-to-fixed assets, intangible assets, equity investments, goodwill, production of biological assets, mining rights and interests in subsidiaries, associates and joint venture investment as long as the compliance , can be provision for impairment, the new guidelines also identified several signs of impairment of assets and the measurement basis, ie, impairment of assets recoverable amount is the value of the agreement minus the selling price net of disposal costs or expected future cash flow in the present value of the higher, due to the uncertainty of future cash flows, so that the recognition of impairment of assets rely more on professional accountants to determine and confirm the existence of more subjective factors, while subjective accounting judgments and estimates the level of accuracy will inevitably affect the quality of accounting information, to a certain extent, affect the authenticity of accounting information and objectivity.

The new guidelines provide for impairment of assets are not reversed, although clogging of the channels listed companies to manipulate profits, but with changes in economic activity, enterprises of the original provision for impairment reversal of the actual existence of the new guidelines provide no processing, the asset's carrying value can not truly reflect the process of economic activity, reducing the quality of accounting information.

2.3 The new guidelines provide the benefits of debt restructuring through profit or loss, may produce huge profits, thus affecting the reliability of accounting information.

The new guidelines provide: debt restructuring to the debtor's financial crisis to the premise of debt restructuring gains included in operating income, not capital reserve for in-kind swaps business, debt restructuring gains as non-recurring gains and losses through profit or loss, to the profits of listed companies, therefore, the amount of those liabilities, there may be a higher debt forgiveness company, its earnings per share after the implementation of the new guidelines, will rise sharply. This change in accounting policy as the formation of income, may lead to information on the user's decision-making mistakes, the quality of accounting information being questioned, such as western companies ST East Carbon Company 2005, 2006 annual earnings per share were -0.32, -0.42 yuan, the production operation there is no substantial change in circumstances, 2007 July 26, the sudden announcement: The company's financial department of the preliminary estimates, the Company expects to achieve profitability during the first half of 2007, profit range of 1300-1600 million, mainly due to performance Yuying first half of 2007 confirm the debt forgiveness income 2894 yuan. debt forgiveness income under the old accounting standards should be included in capital surplus, while the new guidelines should be included in operating income. Obviously, East Carbon's first half 2007 profit is not their own improved operating performance actions, but to use the new corporate accounting guidelines.

2.4 The new guidelines require companies can choose methods of amortization of intangible assets, giving enterprises more choice, but it may also become a regulator of corporate profits.

Implementation of new guidelines for the amortization of intangible assets are no longer limited to straight-line method and the amortization period is no longer fixed, to give businesses more choice, therefore, companies may be accelerated by reducing the amortization period and amortization to improve the company's performance, or the opposite way to reduce the performance to achieve the purpose of earnings management.

3 after the implementation of new guidelines recommendations to improve quality of accounting information

3.1 improve the reliability of accounting information and relevance:
Under the new accounting rules, companies should be based on actual transactions or events as a basis for accounting recognition, measurement and reporting, accurately reflect the recognition and measurement requirements in line with the accounting elements and other relevant information, to ensure true and reliable accounting information, content integrity At the same time, companies should provide accounting information and financial accounting reports of economic decision-making relevant to the needs of users, help users of financial accounting reports of enterprises in the past, present or future to assess the situation or predict.

3.2 contain the provision for impairment of enterprises to use to manipulate the phenomenon of profit:
According to the new <<Accounting Standards - Impairment of Assets>> regulations, listed companies should pay close attention to the existence of long-term asset impairment, and in accordance with relevant provisions of the existence of signs of impairment of assets for impairment testing. Should also be made fully evidence that the original impairment provision is reasonable, otherwise by the principle of pre-processing error correction of long-term equity investments, fixed assets and provision for impairment of intangible assets, is confirmed in subsequent accounting period shall not be reversed. This require companies to change the management and financial accounting manager, thinking, convergence with international practice, and promote China's faster integration into the international accounting industry environment, radically curb the use of corporate assets for impairment provision for the phenomenon of manipulation of accounting profits.

3.3 Accounting focus on commercial substance.

New <<non-monetary assets exchanged>> Accounting Standards, the introduction of fair value measurement attribute, companies in the event of non-monetary exchange of assets, at fair value and should be paid the relevant taxes and charges, as for the cost of the asset, fair value for the difference between the book value of assets through profit or loss. This provision confirms the exchange of non-monetary assets to achieve the inflow of economic benefits, improve the quality of accounting information. enterprises in order to avoid abuse of the fair value of the manipulation of profits, should be according to the new accounting standards, only meet two conditions, namely asset exchange has commercial substance, and the exchange of assets or the assets of the fair value can be reliably measured at fair value in order to use the same time, enterprises in accordance with the new <<Accounting criteria - Debt Restructuring>> provides reasonable assurance to get the debtor in the interests of debt restructuring and profit or loss, and improving the performance of gold.

3.4 to strengthen the supervision of accounting information:
Business under the new guidelines for accounting information, many ideas and different ways with the original guidelines, which requires supervision of department personnel to change the concept of supervision, flexible new situation, and establish learning concept while to adapt to the new situation demands a paradigm shift of supervision philosophy, political change in the supervision of their ideas, and establish cost-effective concept. In order to improve the effectiveness of supervision, supervision of supervision departments should also highlight the key elements, especially to play the advantages of financial supervision. The situation and concerned about the new guidelines hot and difficult issues, the right medicine, a clear focus on supervision as a preventive measure to enhance the internal control system checks.

Implementation of new guidelines, to the performance of listed companies into a new meaning of the concept, the impact on capital markets is continuing, all aspects in the information familiar to users of accounting information to know never to the understanding and Application process , the various regulatory departments must strengthen supervision, in particular, give full play to the role of audit and supervision to ensure the quality of accounting information.


References
[1] Ministry of Finance announcement of accounting information quality check (XIV), August 22, 2008
[2] Ministry of Finance. Accounting Standards. Beijing: Economic Science Press, 2006.2.15
[3] Ministry of Finance. Accounting Standards - Application Guide, Beijing: Economic Science Press, 2006.10.30
[4] the quality of accounting information check the Ministry of Finance announced XIII, No. XII
[5] The new accounting standards for listed companies' financial information and impact analysis. Master of Accounting test counseling.

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