A Study On Assessing Quality Of Financial Reporting

High quality accounting information produced on the basis of high quality accounting standards is the life-blood to support the effective running of whole market economy. Recently, in the global capital market, there are tides of cheating in financial reporting, which recall us to think whether accounting information under contemporary financial reporting model has information value content and what qualitative characteristics should it be possessed. It also leads to a series of checks and establishment into financial reporting's assessing standard. Some constitutions and commissions, in developed countries or areas, especially in America, dedicating to the accounting standard setting, have made some active and beneficial researches with great efforts. It is a global issue, however, to promote the high quality and transparency of information disclosure of capital market by improving and perfecting the preparation and presentation of financial reporting. Thus, this thesis is addressed to make a review of and construct our own assessing quality of financial reporting via analyzing and learning from its firm reform and contribution.This thesis demonstrates, according to a historical logic, the theme and research thought, and make a comprehensive and systematic scrutinization into the main literature relating to the assessing quality standard of financial reporting which is divided into two basic models and views, or user needs perspective under FASB model and investor protection perspective under SES model. In chapter two, from the publication of SFAC2 as a token of FASB model to the recommendations about improving business reporting presented by Jenkins committee which was affricated to AICPA in 1994, we can put forth the course of constructing and perfecting financial reporting quality assessing standard system under FASB model. It is easy to explain and tackle with some dilemma confronting the assessing standards, such as the decision usefulness viewpoint served as a dynamic concept to make a continuous confliction between information demand and supply, trade-offs among a set of quantity assessing standards, especially reliability and relevance be cause of their inability to interpret in theory and their opposition in application. To answer these questions needs an objective, reasoned and impassioned mind. In charter there, firstly, we are convinced that the generation of SEC model is based on the tide of earnings management and claming for the protection of investors' following views. Following opinions all stand the side of investors to detect assessing standards: three key standards to evaluate IAS quality (Comparative, transparent and full disclosure),Bliie Rubblon Reporting Recommendation NO.8 demanding the clearance of financial information disclosure and telling company's accounting policy use, and revised SAS NO.61 emphasizes reliability, neutrality and consistency of quality. These views may not be mature compared withFASB model. In addition, there can be no differentiation without contrast, there are some instructive revelations can be acquired by drawing a comparison between the two perspectives through a set of dimensions reflecting neatly their difference.The stone of his mountain can offend the jade. Those scientific, reasonable theory concepts and practice methods proofed by reality can be helpful for us to introspect and try to find solutions to the same problem. Thus, in the foot of anal analyzing our capital market's status quo and future development trend, this thesis is intended to set a conceptual framework for assessing standards preferred to our financial reporting, which is an integrated perspective. At the Same time, it also presents some immature viewpoints as to promote the accounting standard setting and information disclosure.