Research On Accounting Standard-setting

High-quality accounting information is the fundamental foundation of the effective operating market economy. As is known, the formation of the external accounting information relies on a serious of strict accounting standards system. High-quality accounting information is based on high -quality accounting standards, and different accounting standard setting models have vital importance on accounting standards quality. Therefore, it has a great realistic significance to probe into the accounting standard-setting problem. The objective of this paper is to analyze the advantage and disadvantage of different standard-setting models. We mainly employ the approach of comparative research and normative research. Furthermore, we probe into the issues of standard setting in our country today and put forward several propositions.Chapter 1 is the introduction, which mainly introduces the background of this research and presents main problems.In chapter 2, we discuss the nature and logical causes of accounting standards We analyze three representative points regarding the nature of accounting standards. We point out some discrimination and advocate that we should incorporate anything. In 1960s, foreign scholars had studied the causes of the emergence of accounting standards. This paper creatively divides the regulation on accounting information into two parts: regulation on quality of accounting information and regulation on quantity of accounting information. It is useful to clarify some confusing recognition about the logical causes of accounting standards.In chapter 3, we discuss the basis of standard-setting. In July 2003, SEC issued "Study Pursuant to Section 108(d) of the Sarbanes-Oxley Act of 2002 on the Adoption by the United States Financial Reporting System of a Principles-Based Accounting System" and proposed a new concept "objectives-oriented". We clarify the two concepts: principles-basis and rules-basis and analyze advantage and disadvantage of them in details. Then we explain the real meaning and significance of objectives-oriented approach. We find that the adoption of objectives-oriented approach has its special political backgrounds. The realistic effect remains to be further testified. In the end, we analyze the accounting environment in China and arrive at a conclusion that the objectives-oriented (principles-based) approach is not suitable for us. As far as Iam concerned, the research about "objectives-oriented" is seldom in China.In chapter 4, we discuss the bodies of standard-setting .At first we define models of setting body. After synthesizing former research, we analyze the environmental characters, advantage and disadvantage of models of government as standards setter and nongovernmental body as standards setter. We argue that due to the specificity of Chinese transitional economy, it is rational to adopt the model of government as standards setter. It is helpful to balance the benefits of all sides and promote the accounting reform. In May 2003, the Ministry of Finance issued "the Outline of Chinese Accounting Standard Board". We analyze the role and function of CASE in details.In chapter 5, we discuss the approaches to standard setting, which includes two aspects: processes and logical foundation of setting approaches. We probe into the setting processes in America in details. We also discuss two kinds of logical foundation: Preference Aggregational Standard-setting Approach and Theory-based Standard-setting Approach, and point out that both of them have advantages and disadvantages. We pay much attention to the approach to standard setting in China. In July 2003, the Ministry of Finance issued revised "Processes of Accounting Standard Setting". We compare the new processes with the old one and find there are not only some improvements but also residual defects.In chapter 6, we discuss the internationalization of accounting standards. Based on the discussion of natures of accounting standards in chapter 2, we recognize that the internationalization have both technical attribute and po...