The Study On Economic Consequences Of Accounting Standards

The more our society advances highly, the bigger the implement of a new accounting standard brings into economic consequences. The year 2007 is the first year for implement of new Accounting standards. As an institution to restrict disclosure behaviors of accounting information in capital market, it is very important to promote development of our homeland capital market. So our research of economic consequences of accounting standards can produce significant meanings in the case.By normative research method, our study focuses are some accounting basic theoretical problem that is the economic consequence of accounting standards from the view of institution economic information economics and game theory. We hope to discern its forms in different social and economic settings to promote quality of accounting information by understanding the meaning of the economic consequences of accounting standards.According to institution economics, institutions are divided into procedure institutions and acting institutions. Acting institutions are based on procedure institutions, and are chosen by the latter. So, in our research, the economic consequence of accounting standards are separated into two of parts of those which are setting and use two processes, and setting processes influences use process.In different institution settings, the economic consequences of accounting standards have different existing forms and different degree of impact on different parties. In U.S. due to relative mature and prefect capital market, accounting standards can influence different groups, so that leads to accounting standards as a social contract between different parties. In our homeland, the economic consequences of accounting standards have imperfect form and government-oriented because the parties are not concerned about setting and use of accounting standards. With the development of capital market, these phenomena will be changed.The economic consequences of accounting standards are relative to different parties rather than all parties to accounting standards. So, we introduce Rawls' law to assess the economic consequences of accounting standards, to realize max social welfare.We intend to analyze the economic consequences of accounting standards from different views. Due to some limitations such as our study skill and data resources, there exist some weaknesses that are theoretical deduce normative methods and evidences that can not support strongly our views. Especially analyses of new accounting standards, we do not investigateThe economic consequences of accounting standards by use empirical methods. All these weaknesses will be main topics of our future research. These limitations are:1.The study on the economic consequences of accounting standards should be further detailed from specified standard by the empirical study method.2.Employing the theory of game theory, we analyze interests of parties to accounting standards, and influences of distribution of these interests relative to accounting standards.