New Accounting Standards Change And Its Impact On The Stock Market

Accounting and Auditing Standards conference held in Beijing on February 15, 2006, 48 accounting Standards and 39 certified accountants audit guidelines offcially unveiled. This indicates that the convergence of accounting standards with China's market economic development and the heconvergence of accounting standards with international practices enterprise system and the establishment of a formal system for certified accountants audit guidelines. New accounting standards will be implemented in 2007.Changes of the new accounting standards to the financial statements of listed companies have significant impact to several criteria: inventory, real estate investment criteria exchange of non-monetary assets, impairment of assets criteria, debt restructuring guidelines, the consolidated financial statements.Among the new "stock"canceled "last-in, first-out method";The exchange of non-monetary assets is fair value; Impairment of Assets guidelines "Inventory Price," "Impairment of fixed assets,"and "Reduction in the works." "Impairment of intangible assets" not after retaining welfare and worker training funds from the start back in 2007; And will not affect the stock's valuation, and becarse of new accounting standards adopted the fair value in many respects. Generally speaking, fair value is generally higher than the cost of the book; therefore, the implementation of new guidelines for the overall performance of listed companies would improve slightly. standards will enhance the comparability of stocks at home and abroad, to enhance the equity-based incentives to staff. Information will also make corporate accounting more realistic, and transparent. based on the above studies and arguments, the paper analysis a numbers of options for the majority of investors can take to deal with the new accounting standards,this article should remind investors of impairment Get the best return on their investment.