Accounting Standards For Enterprises Research Articles

The Role of Auditing Firms in the Implementation of New Accounting Standards: Evidence from China

This paper explores the impact of auditing firms on the implementation of the new Chinese Accounting Standards for Enterprises 22 (new CAS 22), which converges with IFRS 9. We find that the Big4 firms focus on fair value measurement and application of the expected credit loss (ECL) impairment model, whereas the LocalTop6 firms primarily focus on the classification of financial assets. The results indicate that effective implementation of the new standards mainly depends on standardized procedures and professional techniques of auditing firms, as the Big4 firms exhibit better implementation of the new standards in terms of items that generate greater risk and uncertainty than do local large auditing firms in China. In addition, we further test how cross‐listing affects the role of auditing firms in implementing the new standards and find that the Big4 firms play a more significant role for A‐share only companies than A + H companies. The findings reveal the challenges associated with implementation of IFRS 9‐based new CAS 22 in China.

Correlation Analysis between Stock Price and Accounting Profit Based on a Vector Autoregressive Model

The study of accounting profitability was initiated by the famous American scholars Ball and Brown in the 1960s. In recent years, with the continuous development of market economy, the continuous improvement of the accounting legal system and accounting standards for enterprises has promoted the research on accounting profit in capital market in China. Due to the restriction of some objective conditions, there are not many valuable research results on the relationship between accounting earnings and stock price changes, and the research methods suitable for the study of accounting earnings still need to be explored and summarized. The China Securities Regulatory Commission (CSRC) has required listed companies to publish quarterly financial and accounting reports since 2002, and the condition of using the regression analysis method to study the accounting profit of listed companies is available. In this context, this paper designs a vector autoregressive model to study the correlation between stock price and accounting profit. First, combining the literature and the research results of accounting profit at home and abroad, this paper expounds the statistical analysis of accounting profit. Then, this paper analyzes the accounting profitability of listed companies in China from static and dynamic perspectives. Finally, according to the accounting profit status and profitability statistical analysis of accounting information, accounting profit and growth relationship, and accounting profit information and the relationship between stock prices, this paper is concluded. Also, this paper shows how to improve the profitability of listed companies and how can investors effectively use the accounting earnings information of listed companies for stock investment and put forward corresponding policy suggestions.

The Influence and Implementation Strategies of New Enterprise Accounting Standards on Coal Enterprises

The Influence and Implementation Strategies of New Enterprise Accounting Standards on Coal Enterprises

The Impacts of New Financial Instrument Accounting Standards on Chinese Commercial Banks

On March 31, 2017, the Ministry of Finance revised and issued three new financial instrument accounting standards including Accounting Standards for Enterprises No.22- Recognition and Measurement of Financial Instruments. The banks of China’s A and H stocks have implemented the new standards since January 1, 2018. From January 1, 2021, the scope of implementation of the standards covers all non-listed commercial banks. The new financial instrument standards have undergone great changes in the classification and impairment treatment of financial assets, which is bound to have a profound impact on Chinese commercial banks. This article analyzes the impacts of new standards on Chinese commercial banks from the aspects of financial asset classification and measurement, impairment, credit risk management, profit and earnings management. Finally, the paper puts forward several suggestions and measures on the system and model construction, credit policy and post-loan risk management and talent training, in order to facilitate banks smooth the transition to the new standards.

Conscientiously Implement the Accounting Standards for Enterprises and Fully Improve the Quality of Accounting Information

Conscientiously Implement the Accounting Standards for Enterprises and Fully Improve the Quality of Accounting Information

Research on the Difference and Coordination between New Accounting Standards and Tax Law Based on Computer Aided Technology

China’s tax system reform in 1994 and enterprise accounting standards reform in 2006. When both of them operate at the same time, the difference between accounting standards and tax law in our country leads to an enduring topic. The differences between accounting system and tax law are mainly reflected in the forms of expression, influencing factors and ways of coordination, which are related to the perfection of tax system and accounting system in China. Therefore, the difference and coordination between tax law and accounting is a difficult and hot topic in the theoretical circle. This paper takes China’s new accounting standards and tax law as the research object, uses computer-aided technology as a research tool. Firstly, the differences between China’s new accounting standards. Secondly, this paper analyses the reasons for the differences between accounting standards and tax law. Finally, some strategies are proposed.

Literature Review of Structured Entities

The “Accounting Standards for Business Enterprises No. 41-Disclosure of Rights and Interests in Other Entities” promulgated in China in 2014 proposed the concept of “structured entities”, and the 2014 revised “Enterprise Accounting Standards No. 33-Consolidated Financial Statements” made clear a single control-based consolidation model for all entities, and stated that “structured entities” controlled by the parent company should be included in the scope of consolidation of the company’s financial statements. The introduction of the concept of “structured entities” and changes in related standards have placed new requirements on accounting theory researchers and practical staff. The article reviews related research on what is a “structured entities” and its similar special purpose entities and variable interest entities.

Equity Financial Assets: A Tool for Earnings Management—A Case Study of a Chinese Corporation

With China’s adoption of principles‐based international accounting standards and its convergence with International Accounting Standard 39 (IAS 39), Chinese companies have discretion under the original Accounting Standards for Enterprises 22 (CAS 22) as to how they account for the initial measurement, sale, and subsequent reclassification of financial assets. We use a Chinese company (‘Company A’) as a case study to illustrate how earnings are managed to exploit this discretion. We document that the company re‐classifies its available for sale equity investments as long‐term equity investments to decrease the volatility of the company’s apparent profits. We also make some predictions regarding how the company will handle its financial assets under the new standard, which is the same as IFRS 9. Our research contributes to the continuous improvement of China’s accounting standards and has implications for regulators of the capital market.

The Philosophical Reflection on the Balance Sheet Liability Method

On February 15, 2006, the ministry of finance issued new accounting standards system, including the accounting standards for enterprises - income which has clearly shown that we should apply the international balance sheet debt method to tax accounting. The view of assets and liability, as the theoretical basis of balance sheet debt method pays more attention to the reality of transaction and event, so that it can make financial statements more true and fair. Accounting theory is a complicated system, and it is beneficial to solve the problem of accounting theory in the study of accounting theory, and it is beneficial to promote the study of accounting theory. In this paper, combined with the enterprise accounting standards - income tax, the income tax calculation of the balance sheet liability method contained in the philosophy of thinking is discussed.

On the Recognition, Measurement and Disclosure of Forest Biological Assets

By analyzing the recognition, measurement and disclosure of forest biological assets, this paper aims to further enhance the recognition, measurement and disclosure levels of forest biological assets and also regulate the recognition, measurement and disclosure processes of forest biological assets. This paper both refers to the relevant provisions of the “Accounting Standards for Enterprises No. 5–Biological Assets” and uses cost measurement methods such as replacement cost method. The recognition, measurement and disclosure analysis of forest biological assets can help grasp the specific value of forest biological assets from another perspective. This will not only be able to improve the credibility of forestry enterprises, but also guarantee the reliability of forest biological assets.

The Discussion of Precise Depreciation Management in China

This paper proceeds as follows. Depreciation expense, which will directly relate to the size of the product costs, profits and taxes, is being widely concerned. A great number of people are particularly interested in the accurate depreciation of the costs of fixed assets. Different kinds of fixed assets bring economic benefits for the enterprise in completely different ways so that they should adopt different depreciation methods. The Enterprise Accounting Standards of China stipulated that if the companies increase fixed assets during the month, there will be no depreciation expense this month. But I disagree with this rule which violates the requirement of accounting the quality of information in reliability and authenticity. We should accurately calculate the depreciation expenses by the time, since then the depreciation expense can be accurate to a day. Strengthening the depreciation of fixed assets to precise management is imperative. Precise depreciation management not only helps to control the cost strictly, but also can strengthen management and promote the enterprise to develop sustainably.

The Study of Accounting Conservatism after the Promulgation of New Accounting Standards for Enterprises - Based on the Evidence in China’s Capital Market

The accounting conservatism is the important topic of academic research in China and other countries, the Ministry of Finance promulgated accounting standards for enterprises which looks upon accounting conservatism as one of the principles for the first time in November, 1992 in China. And the Ministry of Finance issued a new Accounting Standards for Enterprises which regards the accounting conservatism as the quality requirements of accounting information in February, 2006. Thus the importance of accounting conservatism can be vividly seen. This paper uses the companies as the research samples after the implementation the new accounting standards for enterprises promulgated, that is to say, I choose the data from 2008 to 2011 for 4 years as research samples. Using Ball and Shivakumar’s (2005) accrued - cash flow model, but the model was modified, specific practice is to divide accruals into discretionary accrual items and non-discretionary accrual items, the results of multiple regression show that China’s accounting earnings is conservative, but accounting conservatism stems from non-manipulative accruals.

The Construction Process and Effectiveness of the Asset Impairment Standard System in China

During the past decade, criterion system of impairment of Assets has experienced a process from scratch and scattered to highly-developed in China. So far, “Accounting Standards for Enterprises No. eighth -- Asset Impairment ” has been implemented for nearly five years, and listed companies had compiled interim and annual reports during the 2007-2011 period which experienced a good condition overall. It is a significant breakthrough in the processing of accounting standards and accounting system, which constructs and consummates the system of asset impairment standard, require enterprises to reflect the value of the asset fairly and prevent inflated profits from property price foam. Introduction In recent years, the International and the domestic practice indicates that, in order to reflect the true value of the assets reliably, so as to improve the quality of accounting information, and reduce the uncertainty in decision-making, relevant accounting standards for recognition, measurement and presentation about asset impairment must be developed and implemented. During the past decade, criterion system of impairment of Assets experiences a process from scratch and scattered to highly-developed. In February 15, 2006, Ministry of Finance of the People’s Republic of China issued the "Accounting Standards for Enterprises No. eighth -- Asset Impairment" (Ministry of finance, PRC, 2006a), which regarding as the complete establishment of Chinese asset impairment standard system. Based on the experience of formulation and implement the accounting system and accounting standards, the Ministry of Finance drew some lessons from international accounting standards, and adopted the mode of “basic standard of impairment of Asset commanding other relative individual specific standards” to build asset impairment standard system, which has strong international significance.

The Construction Process and Effectiveness of the Asset Impairment Standard System in China

During the past decade, criterion system of impairment of Assets has experienced a process from scratch and scattered to highly-developed in China. So far, “Accounting Standards for Enterprises No. eighth -- Asset Impairment ” has been implemented for nearly five years, and listed companies had compiled interim and annual reports during the 2007-2011 period which experienced a good condition overall. It is a significant breakthrough in the processing of accounting standards and accounting system, which constructs and consummates the system of asset impairment standard, require enterprises to reflect the value of the asset fairly and prevent inflated profits from property price foam. Introduction In recent years, the International and the domestic practice indicates that, in order to reflect the true value of the assets reliably, so as to improve the quality of accounting information, and reduce the uncertainty in decision-making, relevant accounting standards for recognition, measurement and presentation about asset impairment must be developed and implemented. During the past decade, criterion system of impairment of Assets experiences a process from scratch and scattered to highly-developed. In February 15, 2006, Ministry of Finance of the People’s Republic of China issued the "Accounting Standards for Enterprises No. eighth -- Asset Impairment" (Ministry of finance, PRC, 2006a), which regarding as the complete establishment of Chinese asset impairment standard system. Based on the experience of formulation and implement the accounting system and accounting standards, the Ministry of Finance drew some lessons from international accounting standards, and adopted the mode of “basic standard of impairment of Asset commanding other relative individual specific standards” to build asset impairment standard system, which has strong international significance.

A comparison between the FASB conceptual framework and the draft of accounting standards of the People's Republic of China

In November 1990, in response to tremendous changes in its socioeconomic environment, the People's Republic of China released Enterprise Accounting Standards No. 1—Fundamental Standards (the Draft). This paper highlights major similarities and disparities of accounting standards between the Draft and the U.S. Financial Accounting Standards Board (FASB) conceptual framework concerning accounting assumptions, basic principles, implementation constraints and accounting elements. The format of financial statements, additional disclosure requirements and characteristics of the Draft are presented. The analysis of the Draft shows that conservatism plays an ambiguous role in the current accounting reform in the People's Republic of China but substantially affects relevant accounting standards.