Securities Market Accounting Standardization Study

To develop the Chinese Security Market, the normative security market is very important, we have learned from history that the normative security market is indispensable of its cornerstone-normative accounting. It was found that, in the development of a brief 10-year period of the security market, either the corporate accounting practice or the disclosure of accounting information, or the auditing supervisions by the CPAs, is facing an impending realistic problem of normative requirement.In this paper, firstly the author points out the urgencies of the managerial normalization of the security market, from which the problems of accounting normalization were given out. Then according to the Efficient-Market Hypothesis(EMH), investment theory, information economics, the author systematically study the problems of the normative accounting in the security market, such as, accounting standards normalization, the relationship between the EMH and accounting information, the disclosure of accounting information, and the auditing supervisions by CPAs. In the end, a normative system for the accounting normalization to play a role in the composite harness of the security market set up. In this system, economic laws and regulation ensure the legal protection for accounting normalization; accounting standards are the core of the accounting normalization; the disclosure system of the accounting information is the effective means of the accounting normalization; and the auditing roles of CAAs are the prerequisite of the accounting normalization.