Study On New Debt Restructuring Accounting Standards

With the further development of the socialist market economy in our country, and the continual expansion of the capital market, the competition among corporations is becoming intense. So financial distress, sales decline, and even incapability to repay the debts due are unavoidable in some corporations. When the debtor has financial difficulty, both sides of debts will often seek the least costing way to settle the debts, that is debt restructuring. Since the 1990s, debt restructuring has been quite normal in the practical economic operation in the listed companies of our country, which makes it necessary to regulate the standards of debt restructuring accounting. After the Ministry of Finance first issued the Debt Restructuring Accounting Standards in 1998, it has undergone twice revisions in 2001 and 2006. Based on the 1998 version, the 2006 version was changed a lot, while the 2006 version almost keeps the some content of the 1998 version. We can see that after the profound reformation in 2001, the debt restructuring standards returns to the main idea of the 1998 version. This is a main feature of the standards of debt restructuring accounting among various accounting standards. So it arouses wide attention from the academic world. Whether the new standards of debt restructuring of 2006 can avoid the problems after the 1998 version of standards was put into use, the possible problems that may appear when it is in operation become the focus of our attention. By 2008, the new standards have been in operation in the listed companies over one year. So this thesis introduces the theoretic basis of debt restructuring. And through comparative analysis, it compares the 2006 standards of debt restructuring and financial accounting standards of America, and it also compares the 2006 standards with the 2001 version. At the same time, with the report analyzing the general trade of the Shanghai and Shenzhen stock market made by the stock exchange, this thesis concludes with the economic consequences of the new standards and some suggestions to improve the standards.