The Impact Of The New Accounting Standards On Quality Of Earnings

The market economy of China has developed very rapidly since the reform and opening policy. And the accounting theory of China is also improving. There are a series of accounting standards reforms in china which make the quality of accounting standards gradually improve to upgrade gradually. The ultimate goal of accounting standards reforms is providing decision-useful information for users of accounting information. Whether the use of high-quality accounting standards can improve the quality of accounting information do? In this paper, we further validate the relationship between accounting standards and earnings quality by the changes in earnings quality under the new guidelines, and explain the new economic consequences of accounting standards to a certain extent. We hope it can provide relevant theory for the investment decision-making and some basis for the construction of China's accounting system.In this paper, we use 2005—2008 A-share listed companies as samples to measure the level of earnings quality in terms of accounting earnings forecast future cash flow. We Analysis and explore the impact of new accounting standards for listed companies of earnings quality from differences in earnings quality of before and after the implementation of new accounting standards in china and the direct economic consequences of the implementation of impairment criteria for assets with DD model. This study concluded as follows: 1.In term of the difference of earnings quality before and after the implementation of new accounting standards, After the implementation of new accounting standards A-share listed company earnings quality is higher than that before the implementation of new guidelines for earnings quality.2.In term of the economic consequences of the implementation of new Impairment of Assets Guidelines, there are significant differences in impairment accrual rate before and after implementation of the guidelines which indicate that new accounting standards make our accounting tends to be more robust.This research mainly embodies contribution in the following aspects: 1. By summarized the study which analyze the existing accounting standards on the company's quality of earnings we found that most of the current article studies is based on the old system, the reality of the reference value is limited, the new standards system is not only from the intensity of reform or degree of their practical but also the previous criteria for any of the reform can not be compared. And because there are only three years since the implementation of new accounting standards in China and listed company's annual report time is in the next year in April. Compared to previous studies we draw the conclusion with data taken by the latest annual report which is more valuable.2. This study not only demonstrate the impact of earnings quality by the implementation of the new accounting standards from the overall, But also evidence the impact of new guidelines implementation from the impairment of assets of listed companies to bring specific changes in economic activity.