| The end of 1970's marked the reformation of China's macroeconomic system. The essential and final target is to establish a market-oriented economy. As far as accounting is concerned, the so-called "the Third revolution" in China's accounting history initiated in late 1980's.The traditional accounting and management system, which was set up to fit the highly integrated planned-economy, has obvious flaws. It's totally opposite to the requirement of market economy. Under the traditional accounting system, the need of macro management is placed as the priority while the need of investors, debtors and other relative beneficiaries is neglected.The development of accounting reflects the economic development, and the reform of market system helps to propel the accounting reform. Moreover, the open policy and absorb of foreign capital also accelerate the innovation. Just as Premier Zhu Rongji has emphasized: the accounting information is the universal business language; a must in negotiation. China's market-oriented economic reform has totally abandoned traditional accounting system. Government's influence on the fairness of business financial reports becomes less and less, and financial reports concentrate more on the need of investors and creditors for decision-making's sake.Financial accounting and security market interact in modern market economy, and the establishment and development of security market has accelerated the accounting innovation. In modern enterprise system, capital market makes sense in improving corporate governance while providing a financing channel. Being the most active part of modern economy, financial accounting, corporate governance and security market stimulates each other. The failure of planned-economy is not only owing to the inefficiency of the resource allocation. A very important characteristic of market economy is the dispersed decision-making of individual economic agent. In market economy everyone can make full use of the revealed information. As an important information source, accounting information focuses on the needs of decision makers. In present China, companies often provide false accounting information. This impairs the quality of information and misleads relevant decision-making. The lesson we learned from Hongguang and Yin Guangxia cases is the severe consequence of the incomplete and unauthentic disclosure of accounting information. In the author's opinion, it is time for us to look into the accounting information problem. There are many literatures on accounting information, among which only a few probe into this issue from the perspective of Economics and take the accounting information as a product of market economy. In this case, the main purpose of this paper is to try to establish a main framework for the effective operation of China's accounting information market. Two main topics are covered in the article, which are about the accounting information market and the government regulation in case of market's malfunction. Firstly through the analysis of accounting information market, the author demonstrates that this market has a mechanism of self-adjustment. Then the author discusses the cause of the market malfunction approaching from Economics. Last but not the least, the author dwells on government regulation in accounting information market and put forward a frame of administrative levels.This article is mainly composed of three parts: analysis on accounting information allocation in market, failure of the operation of accounting information market and analysis on government regulation. The first chapter expounds on the development of the cognition of accounting's essence in western counties. The three phases in the development are the artistic theory, the scientific theory and the latest one, the information theory. The last one has become the most authoritative theory ever since and has profoundly promoted the development of accounting theory. At the end of this chapter, the author presents his own point of view about the essen... |
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