Research On Internal Control Self-assessment Of Debt Restructuring Of Listed Companies

It is the frequent debt restructuring activities that bring out the debt restructuring standard. After the Ministry of Finance first issued the Debt Restructuring Accounting Standards in 1998, it has undergone twice revisions in 2001 and 2006. Debt restructuring new standard change very greatly compared with the standard in 2001, but is essentially identical with standard made in 1998. The new standard uses the fair value as a metering method, uses estimation technology of current value, and look on the income in restructuring as the current period increase and decrease. All of these are identical with the international criterion in nowadays. However, many listed companies used the debt restructuring as the method of earnings management. They made profits and varnished over the finance statements according to false restructuring, which brought serious negative effect to small and medium shareholders, creditors and securities markets. The internal control system of debt restructuring doesn't play its part. Therefore, it is meaningful for accounting theory and practice to implement the internal control self-assessment of debt restructuring. It can help the authority find the internal control deficiencies and improve the internal control to reach the management objectives.Firstly, the paper describes the development and economic impact of the principle of debt restructuring. It also analyses the existing problems of debt restructuring transactions, such as the defective of governance structure, the lack of internal oversight mechanisms and so on. Secondly, on the basis of the meaning of internal control self-assessment the paper describes the target, subject, methods, procedures and the basic content. Thirdly, using the data in 2008 debt restructuring listed companies of ShangHai Stock Exchange, the paper makes descriptive analysis for the general information of the debt restructuring in recent years. Meanwhile, it analyses the relation between the disclosure of self-assessment report and earnings quality using multiple regression model. The research results show that the disclosure of self-assessment report doesn't have great influence on the earnings quality. Finally, based on the status quo of debt restructuring control self-assessment the paper put forward some suggestions to establish and improve the debt restructuring control self-assessment.