The Legitimacy And Legal Deposition With The Power Of Accounting Regulation

The problem about accounting regulation has discussed a lot in recent years. The fraud cases of Enron Company and the World Com Company shocked the whole world, and caused the birth of Sarbanes-Oxley Act in American directly. At present our country stock market accounting information disclosure has a lot of problems that seriously has disturbed the normal order of our country stock market and has brought a very big harm for our country and society. But governing the false accounting information and satisfying the management decision-making and the investor, correct information must depends upon accounting regulation and management in the very great degree, which adapts to the development of the financial market especially the stock market. The accounting scandals in stock market also broke frequently in our country. As a result, the topic of accounting regulation and regulation has become more and more popular with government, institute and the society.A scholar once said, the financial regulation was a legal question basically, whether it was regarded as a kind of government power or a kind of action. As the same reason, the accounting regulation is also a legal problem. Nowadays, the accounting regulation is widely cared. Many experts and scholars from economics and accounting began to reflect, discuss, and research into such cases, and put forward their own theories and solutions. Compared with the heated discussion in economics and accounting, not much care is paid in the legal fields. When we talk about the accounting regulation, it must be contacted with the mode and system of itself, the most important problem is how to divide and carry on the authority of accounting regulation. A series of questions that come from accounting regulation in China forced us to focus more in the key problem. It is shamed that few people researched the authority of accounting regulation or expounded correlative theories. Accounting information is the most important economic information in the market economy. With the rapid development of the economy, the demand for accounting information of investor, creditor, the public and the government are increased quickly. Transparent, adequate accounting information is not only indispensable in decision for people, but also ensures to the capital market prosperity. In order to improve the quality of accounting information of the capital market and prevent financial fraud, we must construct a new mode of accounting regulation in China. The theory field has not got the same idea of the critical task; the text is trying to discuss the justice and the legal deposition with the power of accounting regulation. Using the knowledge of law, sociology, economics, the author hope that this paper can provide a new sight on the constructing of the accounting regulation system in China. It is the meaning and purpose to discuss this topic.We can understand clearly that the power of accounting regulation is a public power in fact. The reasons are as follows: firstly, accounting regulation is a kind of regulation designed by government. The accounting regulation institutes which manage and supervise the public companies must been given the authority from the government; secondly, the power of accounting regulation has an obvious character of enforcement, this makes inequalities between the subject and the object of regulation, the second one must obey the first one's regulation; thirdly, the purpose of giving and functioning the power of accounting regulation is assuring the public companies to provide true information and give it on time, the start point is the interest of public. Above all, the power of accounting regulation is an important way to control the economics by the national government.In the human history, justice has always taken the first place in all the kind of powers. Modern power also chases it. The power of accounting regulation is a public one, but why should it exist? We can make a conclusion that the power of accounting regulation is along with the public crisis in the stock market from its beginning. When we analyses this phenomenon, we can find the accounting information has the outside-affection, as well as the imbalance of information. This decreases the efficiency of using resource and does harm to the public interest. The most workable solution is to find the justice reason of the power of accounting regulation, and it can save the public interest when the market can not run smoothly by itself.The public interests are the obstacle reflects among different accounting relationship. As a result, the government must make effort to balance the interest conflicts between the users of accounting information, and make the social interest get its highest point. But balancing the interests doesn't mean protecting them by one standard, they must be treated differently. According to analyses the deposition of the power of accounting regulation in our government, the paper find that protecting the investors especially the smaller ones has a greater meaning in nowadays.