A Study On Enforcement Mechanism Of Accounting Policies In China

The enforcement of accounting policies is as important as accounting standards. When China Accounting Standards converge International Financial Reporting Standards,regarding the difference in enforcement mechanism and environment, enforcement effect can't reach the international level.Therefore,the study on enforcement mechanism of accounting policies in China is of great significance in theoretical and in practical.This paper uses the normative research approach,studies the enforcement mechanism of accounting policies from the systematic angles.At first,this paper discusses the current accounting policies system in China,form both legal status and target subjects perspectives.Then it studies on the specific components of enforcement mechanism of accounting policies in China,the enforcement situation and existing problems.It also researches the enforcement environment from political and economical perspectives.In the end it evaluates the effect and efficiency of Chinese accounting enforcement mechanism,and gives some suggestion to improve the problems.The innovation of this paper is it focuses on the legal status and legal duty of accounting standards,and researches both the public companies and non listed companies.And it divides specific components into direct enforcement mechanisms and indirect enforcement mechanisms by whether they participate in the produce of financial reports.On this framework,I research all the direct enforcement mechanisms in a lifecycle of a typical enterprise,and the reaction between the indirect enforcement mechanisms.I think the coexistence of several sets of accounting standards is in line with the situation in China.The main problems including the overlap of supervise institutions,lack of equilibrium of powers;the legal status and maneuverability of accounting policies is too low,doesn't set up civil liability system and reputation mechanism,and can't stimulate the implement of accounting policies effectively.So I suggest should improve the consensus of accounting policies,perfect the indirect enforcement mechanisms like property rights system,legal environment and reputation mechanism to set up long-term cooperation and repeated game environment,and the improvement of all the direct enforcement mechanisms in order to perfect the status of enforcement of China's accounting policies.