Economic Analysis Of Accounting Information Distortion

As the establishment and development of system of accounting standards, the accuracy of accounting information has been improved a lot. But false accounting information is still a big barrier to the economical development.The first step to resolve the negative impact on the economical development is to raise awareness of the imbalance between the expenses of false accounting information and the revenues of false accounting information, that is, the prime reason of false accounting information. It is inevitable for enterprises to offer false accounting information if the revenues of false accounting information are far higher than the expenses of false accounting information, which resulting from the imperfection in management structure of enterprises, in accounting standards, in credit system and from accountants who are poorly qualified.The qualitative analysis and the quantitative analysis should be associated to analyze false accounting information. To ensure the accounting information is real and objective, the quantitative analysis is not simply to calculate the information variance but to analyze the capability of enterprises to pay debts by analyzing the financial indexes of enterprises, such as data in financial report, current ration and quick ration, together with their competitiveness in markets, the attitude of managers to credit so as to set up perfect credit system.From the analyses above, the resolution to false accounting information depends on the increase in the expenses of false accounting information on a large scale, which causes it worthless. To reach the target, the first method is to improve the management of enterprises, to establish modern enterprise system, particularly to rectify the problems of control of owners over assets and the management structure. Another way is to form complete system of accounting standards, make the accounting information more accessible to offer real and reliable information, and gradually increase the international compatibility. In addition, legislation should be standardized to ensure open information and credit system in market, and punish severely people who offer false accounting information. The last but not important step is to take measures to improve the qualification and professional ethics of accountants.