Study On Conservatism Effects Of The Implementation Of New Accounting Standards Under The Background Of The Financial Crisis

Accounting conservatism means that incremental assets or returns are affirmed as late as possible and incremental liabilities or expenditures are affirmed as soon as possible. While for the quantity, it means that incremental assets or returns are affirmed as more as possible and incremental liabilities or expenditures are affirmed as less as possible. After the financial crisis, financial information is emphasized for the role on process of investors'protection.The debate between accounting conservatism and faire value measurement attributes has been induced by the financial crisis and "The U.S. bailout bill". Research on accounting conservatism under the background of financial crisis, has profound social and practice sense.What effects on conservatism did the implementation of The New Accounting Standards convergence with International Accounting Standards produce? This paper, using the data of listed firms in Shanghai Stock Exchange from 2005 to 2008, demonstrates the effects of New Accounting Standards on accounting conservatism.Through the regression test of 2005,2006 and2007,2008, it arrives at the conclusion that China's accounting information conservatism was significant in 2005 and 2006. After removing the interference of loss-making companies, accounting conservatism in 2005 was still significant, but in 2006 no longer existed, which showed that accounting conservatism was exist in 2005 while did not really existed in 2006. The overall samples showed accounting conservatism in 2007 also did not existed, but firms whose earning was positive had accounting conservatism, due to the up forward stock market and fair value is used. In 2008, both the overall samples of listed companies and positive earning companies showed that accounting conservatism did not exist.This paper later use integrated model to test the change of accounting conservatism between 2005 and 2008, finding that the implementation of New Accounting Standards have reduced the accounting information conservatism of listed companies.Except the effect from listed companies earning management behaviors, the input of fair value is an important reason. High-quality accounting standards are necessary conditions but not sufficient conditions for the quality of accounting infonnation, the importance of conservatism still exists. So it is important to enhance the audit reasonability, regulate the loss companies'behaviors, and beat the earning manipulate for the improvement of accounting information quality. At the same time, the Financial Crisis should not negate the fair value. The direction of future research is not an option between fair value and conservatism, but rather to explore the level of conservatism reasonable. Insist on accounting conservatism under the premise of the fair value, and equip them with the corporate governance and regulation system matched in order to truly realize the guiding role of the New Accounting Standards. This study also has some reference value for China's amendment of accounting standards in 2010 and interactive participation in the convergence of international standards.