Research On The Problems Of The Accounting Rules On Related Party Transactions Of Listed Companies In China

In recent years, unfair related party transactions have become a main means of profits control for listed companies to obtain rights issue or to avert loss and avoid "ST". Therefore, transactions between listed companies and their related parties have become the focus of securities market supervision. Up to now, the regulatory authorities have issued a series of laws and rules to regulate these transactions.The accounting rules include Accounting' Standard for Business Enterprises: Disclosure of Related Party Relationship and Transactions, Non-monetary Transactions, Debt Reconstruction and the Temporary Provision for Accounting Treatment Problems of Related Party Transactions Such as the Sale of Assets. This thesis focus on the problems of the accounting rules on related party transactions, that is, the content of the accounting rules and the effect of implementation of accounting rules especially the effect of implementation in the regulation of profits control behavior of listed companies with unfair related party transactions.Based on a survey of the evolution of the accounting rules, the thesis draws a conclusion that effect of implementation of which accounting rules restrict the earning manipulation behavior caused by listed companies related party transactions is not satisfactory. Then the thesis puts forward some measures to improve the effect of implementation of the accounting rules based on analyzing internal and external causes for the bad effect.Part one introduces the theory of related party transactions and accountings rules on related party transactions. After a brief introduction of the definition and the character of related party transactions, the part analyzes the features and type and the profit control manner of transactions between listed companies and their related parties in our country. And the basic problems of accounting rules on transactions between listed companies and their related parties are introduced. That is, the content of the accounting rules and the effect of implementation of accounting rules especially the effect ofimplementation in the regulation of profits control behavior of listed companies with unfair related party transactions.Part two analyzes the evolution of the accounting rules of related party transactions and the effect of implementation. After a survey of the evolution of the accounting rules of related party transactions, it draws a conclusion that the evolution of the accounting rules of related party transactions is the game between accounting rules and the manners of accounting manipulation of related party transactions.From the positive aspect, it promotes perfecting of the accounting rules of related party transactions. As well, the unsatisfactory effect of implementation of which accounting rules restrict the earning manipulation behavior caused by listed companies related party transactions are exposed. That is, the manners of earning manipulation that elude the accounting rules which restrict related party transactions will emerge when the accounting rules related to the related party transactions are revised. To resolve the problem, the author believes that three aspects should be analyzed, which some listed companies have urgent motivation that manipulate earnings by related party transactions, the accounting rules of related party transactions is not perfect, and the system arrangement that safeguards the implementation of the accounting rules is not perfect. The later is the root causes.Besides, the part researches the new tendency of earning manipulation emerging in the related party transactions of Chinese listed companies since the Temporary Regulations were established in Nov.21,2001,based on the using the study achievement and the study material including the annual financial reports exposed publicly and the Chinese Securities Paper etc and combing the case analysis. The purpose is to demonstrate the virtual effect of which the accounting rules of the related party transactions of restrict earning manipulation caused by the related party transactions of Chinese listed companies.Part three analyzes the causes of the effect of implementation ofaccounting rules of related party transactions of Chinese listed companies. First, Some Chinese listed companies have urgent motivation to manipulate earnings by related party transactions. Second, the problems existing in the accounting rules of related party transactions of Chinese listed companies and cause are analyzed. Finally, that the imperfection of the system arrangement is the root causes, which decides the environment in which the accounting rules of related party transactions function.Part four puts forward the measures that promote the effect of implementation of accounting rules of related party transactions of Chinese listed companies. The author believes that promoting the effect of the constraint to the earning manipulation by the accounting rules of related party transactions is a systematic process and it demands many systems construction and cooperation besides the perfect of the accounting rules. The part puts forward that perfect the content of the accounting rules of related party transactions and the system arrangement that safeguards the effective implementation of it.