An Empirical Study Of Accruals Quality Under Enterprise Accounting Standards (2006)

Based on accrual basis, accruals quality being the main part of earnings quality,and the earnings quality is concerned by shareholder and debtholder. New Accounting Rules are published by ministry of finance in 2006, after implement of CAS(2006) for one year, is it keep down the manipulate of accruals?In this paper, with the A-share listed company's financial data from 1998 to 2008 as the samples, we discuss the quality of accruals using the approach DD model. Fist, we discuss the correlation between accruals, cash, income and asset. Second, we discuss accruals quality whether or not change after CAS(2006). Third, accruals quality of industry whether or not change after CAS(2006).The conclusions as follows:fist, correlation coefficients between variables are mostly in accordance with hypothesis, except current accrual and future cash. Second, accruals quality decline after CAS(2006). Third, accruals quality by industry show that power,coal, water section are better. And we Should focus attention to four types of industries, particularly in construction and real estate industry, its stock market value is volatile, will produce a large value to reduce preparation on reserve for assets disvaluing of publishing units.