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Research On The System Of Assuring Accounting Information Quality In Security Market

Posted on:2004-03-22Degree:MasterType:Thesis
Country:ChinaCandidate:X J NieFull Text:PDF
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Accounting information, as one of the underlying component of capital market, is an alternative variable of external users' economic decision. However, it is indicated that the present accounting information in security market is of very poor quality, and it cannot complete the task the public expect. Improving accounting information quality becomes one of the international difficulties. Therefore, we should understand what characteristics the high quality accounting information should have first, to construct a system of assuring accounting information quality. This is the logical underlying. On accounting information quality characteristics, the American FASB and SEC put forward their own perspective respectively. Combining their points, the author keeps his eyes on the characteristics such as relevance, reliability, comparability, transparency and so on.However, the accounting information quality characteristic is an abstract measure, which can be merely taken as guiding principle of accounting information's production and transmission. In practice, to regulate accounting information quality, we should resort to accounting standards, information disclosure system and so on. Then the author looks for the system of assuring accounting information quality by analyzing Shannon's information system model, along with the accounting information's production and transmission process. In my opinions, it is the approach of realizing accounting information quality characteristics that setting and undertaking of accounting standard and information disclosure system, and the multi-supervision is the mechanism of intensifying the approach. Therefore, to construct accounting protecting information quality system, we ought to emphasize the following work:1. Setting high quality accounting standards. With the evidence of American accounting standard, we discovered the rule-based standard is one of the cause of "number games" and poor quality accounting information. People can structure complex transactions that technically comply with the standard, but do not accurately reflect the objectives of the standard. The ideal accounting standard is principle-based. How to set these standards? Undoubtedly, accounting theory can guide accounting standards setting; the setting process will affect the standard observance, and the nature of standard setting organization also is relevant to the quality of standard setting product. So, on one hand, we should reinforce research on the accounting theory, and revise our "basic accounting standard" as soon as possible, on the other hand, accounting standard organization ought to carry out a "due process" to adopt public opinions, furthermore, with the perfecting of Chinese market-oriented economic mechanism, it is needed to reform our accounting standard setting organization.2. Perfecting current information disclosure system. To strengthen security market, it is required to protect investment. However, protecting investment does not mean making promise that all investor can gain profit. As long as the disclosed information is true, responsive, and transparent, making profit or not is the investor's own things. This is the philosophy of accounting information disclosure system that was a complete one including security IPO (initial public offer) information disclosure, on-going information disclosure and legal responsibility & compensation system, the three assuring accounting information quality together. Certainly, the economic environment is changing, and the model of accounting information carrier - the finance accounting report statement needs reforming.3. Constructing a set of mechanism to intensify accounting information quality. To prevent from intervening with the accounting information flow, firstly, company needs to construct corporate governance (including independent director & auditing committee system, external control system and external auditing system), to constraint management, secondly the financial report statement is required auditing by CPA (certificated pu...
Keywords/Search Tags:Accounting information, Assuring quality system, Accounting standard, Information disclosure system, Multi-supervision
PDF Full Text Request
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