On existing accounting standards for listed companies to implement the impact of investor

[Abstract] In our current implementation of corporate accounting standards, revenue recognition concept of measurement, accounting and financial reporting objective measurement properties have undergone major changes, the behavior of listed companies, investors and decision-making and so had a significant impact. The article on the current implementation of accounting standards in corporate analysis of these changes, investors in listed companies to explore its impact on the mechanism and causes.

[Keywords] accounting standards, investors, the implementation of impact

I. Introduction

Accounting standards as one of the capital market rules, its goal is to protect the interests of investors nature of capital markets and investor confidence (He Jiangang, Liu Feng, 2006, it is perfect for the market order to promote market development of great significance. Quality high-quality accounting standards is an important guarantee of accounting information conditions (Ge Shu, 2002, and the ability to obtain high-quality accounting information will directly affect the investment decisions of investors. The current system of corporate accounting standards in 2007, listed companies for the first time After the implementation of the Ministry of Finance high priority to its implementation in listed companies, accounting standards have been established for three consecutive years the implementation of the Working Group, a "mark to the market, door-to-analysis" approach, the implementation of listed companies and corporate accounting standards changes in business-related financial data monitoring and analysis, which shows the state of the revised Accounting Standards for listed companies in the implementation of the degree of attention. The current system of corporate accounting standards in its implementation process, revenue recognition concept of measurement, and financial accounting measurement attributes Report of the objectives of the traditional accounting concept of the essential changes have taken place these changes in a listed company's financial position, operating results and cash flow caused by a greater impact, the impact of accounting information, forms, and in turn to the market Investors have an important impact on the company this end, the paper analyzes the current corporate accounting standards implementation process on the concept of measurement of revenue recognition, accounting measurement attributes and changes in financial reporting objectives and characteristics, to explore the impact of these changes on the mechanism and investors reasons.


Second, the measurement of the concept of revenue recognition impact of changing investor

Revenue recognition and measurement from the perspective of the current accounting standards in the implementation process of change is an important concept to the revenues and expenses from the assets and liabilities concept of change. Revenue cost concept that corporate earnings should be between revenues and expenses by calculating determine the difference between the accounting recognition and measurement should be based on the income statement for the center, believes that the concept of assets and liabilities should be based on corporate assets and liabilities to calculate the earnings, accounting recognition and measurement should be more concerned about the balance sheet. current accounting standards implementation process income to balance the cost concept embodied in the concept of change of income tax calculated using the balance sheet liability method, long-term equity investments in subsidiaries by the equity method of accounting method to cost method, intangible development costs, borrowing costs eligible for capitalization part of the condition may be capitalized, the cost will be recognized as a liability disposal and other aspects.

Implementation of the existing accounting standards by the accounting concept of income measurement concept to the revenues and expenses balance the concept of change, and gradually from a simple guide investors concerned about the cost of the invested income to pay more attention to the company's assets and liabilities and changes in shift, prompting investors to rational investment income in the income statement the cost concept emphasizes corporate financial reporting system in the primary position, however, due to the existence of the income statement of income and cost measurement, different caliber, does not reflect long-term profitability, and many other limitations, investors profit excessive attention to the table will tend to chase short-term corporate interests, it has also become the main motive for companies to manipulate profits, while the concept of assets and liabilities in line with changes in assets and liabilities according to the concept of revenue recognition, making the company's revenue includes both the current realized profits, but also contains the current unrealized profits, is a "comprehensive income" category. "comprehensive income" can be more real, more fully reflect the company's profitability and operating results, to enable investors to make decisions time to get a fuller, more appropriate information to enhance the level of return on investment.

Ministry of Finance introduced in 2008 <<Accounting Standards Interpretation No. 3>>, explicitly requires companies in the income statement of the "net" item under the 'other comprehensive income "and" comprehensive income "items, and requires companies to detailed in the notes to financial statements disclosed in "Other comprehensive income," the purpose of the specific amount to reflect the current period to achieve the full benefits. This change in the income statement benefits of disclosure to break the traditional pattern, more directly reflect the view of assets and liabilities under the revenue recognized type, amount and composition easier for investors to gain access to relevant and comprehensive information for investment decisions.

Costs by the income concept to the concept of changing the balance will enable investors to pay more attention to changes in corporate balance sheets. Balance concept to overcome the shortcomings of the concept of cost of revenues, to prevent the company inflated assets, inflated profits and short-term profits ahead of over-allocation behavior, and help investors make long-term sustainable business investment decisions, access to more long-term interests.


Third, the use of fair value to investors of

Use of fair value is the current process of implementation of accounting standards is a major highlight. Fair market value is familiar with buyers and sellers in the voluntary fair trade and the price determined under the conditions in China, had been allowed the fair value accounting in the enterprise in use, but because of the proliferation of the fair value of listed companies to manipulate profits with the case made the ultimate fair value is limited to use in recent years, the assets that meet certain conditions, is measured at fair value and IAS accounting standards in most market economies, the general practices with the formation of China's socialist market economy, improvement and development and the existing Accounting Standards and substantive convergence of international accounting standards, fair value re-use has become a trend.


Fair market value of the transaction is identified under both the Fair Trade price using the fair value of properties that meet the requirements of the assets, liabilities are measured can be a true reflection of the assets, liabilities, current market value, which for investors to evaluate corporate value, investment opportunities provide a strong support in the current accounting standards implementation process, the fair value measurement of financial instruments are used, a business combination under common control, the long-term equity investment to form the initial determination of the cost, follow-up investment in real estate metering, debt restructuring and non-monetary exchange and other specific business assets of these businesses in common is that their value or the amount by the market factors, fluctuating. to financial instruments, for example, corporate holdings of financial instruments, mostly public offering of stock, bonds and derivative products, their history has not truly reflect the cost of financial assets is expected to bring economic benefits to the enterprise. The fair value reflects the current market value of financial assets, it provides accounting information has a strong relevance and timeliness, as compared with the historical cost measurement attribute decision making to better meet the needs of investors from the first listed company in 2007 time implementation of the existing accounting standards situation, caused by the implementation of the existing accounting standards, changes in shareholders' equity of the business year, the biggest increase in the project is "to changes in fair value of its financial assets through profit or loss and available-for-sale financial assets ". current accounting standards require that these two types of financial assets should be based on the balance sheet date the fair value measurement, fair value and book value of the difference between the original adjustment of the beginning of shareholders' equity. The statistics, generated by the difference between the project involves 454 listed companies, shareholders' equity were adjusted by the beginning of 79.504 billion yuan, accounting for 1 January 2007 under the old guidelines for the preparation of the total shareholders' equity of 1.92%, representing a net increase in the amount of opening shareholders' equity ratio of 79.29% (as shown in Table 1 ① .

Thus, the use of fair value measurement attributes and properties using the historical cost accounting to provide different information. There is no doubt that in 2007 China's stock market rose sharply in the context of the overall use of the fair value of assets held by the measured to more truly reflect the value of assets, and thus can more truly reflect the value of the business. If the use of historical cost or other measurement attributes, the effects on investor decision-making a great impact. Links to free download http://www.hi138.com single from the fair value measurement attribute itself, its accurate in practice there is a certain degree of difficulty to obtain once the improper use of fair value estimate will contain a large number of human factors, and even fraud and forgery by the use of this information, once acquired by investors, the interests of investors likely to suffer early on the fair value of the disabled is also largely due to this, therefore, the existing accounting standards for its implementation in the application of fair value to take a very cautious approach, calling for the use of fair value must be consistent with specific prerequisites. <<Accounting Standards - Basic Standards>> clearly stated in a business in the measurement of accounting elements, the general historical cost should be used only in the accounting elements can be obtained and can be reliably measured using other measurement attributes . for using the fair value of the specific criteria also strictly limits the conditions of its application, which to some extent to ensure the fair value of the "fair" expression, but also to effectively curb the profits of manipulation, to protect the interests of investors. to real estate investment criteria, for example, the guidelines provide for: enterprises should be in the balance sheet date using the cost model for subsequent measurement of investment property, investment real estate only in the meet, "has an active real estate market", "companies can make a reasonable estimate of its fair value "and other specific conditions only allowed to use fair value criteria also states: Once companies adopt the fair value model, and then convert it to not cost model. This approach allows businesses to choose fair value measurement model the process has become particularly cautious (the specific circumstances, such as shown in Table 2 ③, effectively squeezing out the fair value of the "water" and also put an end to the subsequent measurement of investment property using mode conversion adjustment of profits, and to protect the the interests of investors. Fourth, the objective of financial reporting impact of changes on investors

Fiduciary responsibility and decision-usefulness view are two different objectives of financial reporting. Concept of fiduciary duty that the financial report is designed to reflect the true owners of the resources entrusted to the management and use of resources, financial reports should reflect the major historical, objective information, emphasizing the reliability of accounting information, while the decision-usefulness view is that the objective of financial reporting is to provide users of accounting information to decision-useful information, the core is to improve the relevance of accounting information.

In the current business before the implementation of accounting standards, our goal has always stressed that the financial reporting concept of fiduciary duty, but with the recent rapid development of China's market economy, the economic environment faced by the enterprises and users of accounting information has undergone tremendous changes, which makes the original objectives have been unable to meet financial reporting needs of investors, decision-making. Accounting standards promulgated and implemented, forming a complete set of financial reporting system, improve the financial accounting reporting objectives, to improve the accounting information users, particularly investors position the current corporate accounting standards require financial reporting objectives in on the basis of fiduciary duty, must also meet the needs of decision-useful <<Accounting Standards for Enterprises - Basic Standards>> states: "Financial accounting reports aim is to provide users of financial statements and the financial position, operating results and cash flow, and other relevant accounting information, reflect management's fiduciary duties to perform, and help to users of financial reports to make economic decisions. "corporate accounting standards system in the 38 specific criteria, the 30 measurement guidelines require confirmation of the enterprise should be disclosure to investors with information about the guidelines, eight reports directly to the enterprise class standards to provide the required financial report which shows that the current corporate accounting standards will protect the interests of investors, to meet the information needs of users of financial reports on important position that will enable investors to obtain more help investment decisions of accounting information, thereby protecting the interests of investors, increase investors' enthusiasm and persistence.


Some enterprises from the Liaoning Province of the chief accountant of the enterprise implementation of Accounting Standards feedback situation, the chief accountant in the survey, there are 84.62% of the Chief Accountant that the existing accounting standards for the information provided by external investment decisions are very great use. Another 78.57% of the Chief Accountant that the existing enforcement of accounting standards to improve the relevance of accounting information. the circumstances shown in Figure 1, shown in Figure 2. ④

V. Conclusion

The current corporate accounting standards of listed companies has been implemented in four years time. Four years, corporate accounting standards system in China to achieve a smooth transition, has been effectively implemented, the economic effect has been clearly reflected. To abandon the current corporate accounting standards in some of the existing shortcomings of accounting standards, its implementation has greatly improved the quality of accounting information, to protect investors' interests on an important position, and more to help investors make investment decisions. Also, the existing accounting standards are also driving the development of China's market economy has played a positive role, but should be noted that the current enforcement of accounting standards has brought us a series of new problems, how to solve these problems, will be directly related to corporate accounting standards system for further improvement and development, and worthy of further Research to explore.

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