The Research On The Accounting Policy Choice

The choice of the accounting policy refers to the course of the enterprise administrative authority drafts the accounting policy according to enterprise's goal or the goal of administrative authority. Because of the uncertainty of the objective world and the complexity of the economic business, the accounting fills with judge and chooses from start to finish. Moreover the completeness and the flexibility of the relevant accounting criterion leaves listed company the space to carry on the choice of the accounting policy. The appropriate accounting policies will directly impact on the quality of financial information and the correct decision of information users' and then influence rational distribution of economic resources.This paper starts with explaining basic conceptions and characteristics at first and then introduces the meaning of choosing the accounting policy and its details. Then it discusses the profound theories of the accounting policy choice deeply and points out inevitability of the accounting policy choice. Following these, it describes the influence on the interested party. This paper illustrates the development history in the accounting policy of the company of our country and the new Accounting Standards for Business Enterprises. The center of this paper is the explanation of the effective choice in accounting policy and the opportunistic choice in accounting policy. By analyzing different cases of different enterprises , it presents how to exert the positive functions of the accounting policy choices, try to get rid of the negative influences of them and enhance the development of the capital market in our country. This paper states that the enterprise's choice of the accounting policy has its own existing objectivity, rationality and inevitability. The effective choice in accounting policy is helpful for improving the quality of the accounting information and realize the maximum of the values of the enterprise. As regards company, it should understand clearly the correct guideline of defining the accounting policy and choosing and use...