Study On Contingency Accounting

As an important content of economic management in enterprises, contingency differs from uncertain operation. However, there are few theses on the difference. Our study is focused on contingency accounting which plays a crucial role in corporation performance.We test contingency by normal analytic method . the structure of the study are as follows: chapter 1 introduces research background; chapter 2 reviews theoretical basis; chapter 3 summarizes uncertainty accounting; chapter 4 gives an overview of Contingency accounting; chapters displays the impact of contingency accounting on traditional accounting theory; chapters is about the contingency accounting operation.Consistency with the analysis, the characteristics of contingency is that: (1) it is a status of uncertainty (2) it distinguishes from future (3) its final result must be proved by future.The impact of Consistency on traditional accounting theory shows as follow: (1) the defining and target of contingency accounting have little difference with traditional accounting, rather more concern on regulation of it. (2) Consistency has most influence on assumption of continuity and monetary measure in traditional accounting theory. (3) explaining the causes that sound value or present value will substitute the historical cost as measureattribute.As to the accounting operation of it: (1) the recognition on assetsN liability and revenue (2) we should adopt stabilized monetary as measure unit for contingency accounting, while for measure attribute , we suggest present value which including future factor and provide four choices to estimate it. (3) Reference to disclosure, our suggestion is off the statement. (4) typical model items include pending action, product guarantee and environment liabilities.