Listed Companies In China, Accounting Policy Choice

With the development of market economy of our country, enterprise'sbusiness is more complicated and more various and the quality offinancial information is much more interrelated with the accountingpolicy choice. The initial and another affirmation and measuring of theaccounting item are all on the basis of the choice and application ofthe accounting principle , procedure and method , so we can say theformulation of financial statement is the result of a series of theaccounting policy choice. That is to say, the appropriate accountingpolicies will directly impact on the quality of financial information andthe correct decision of information users', and then influence rationaldistribution of economic resource and sound development of the capitalmarket. Divide from motive type, the accounting policy choice is to bedivided into the opportunistic type and effective type. The effectivechoice in accounting policy is based on a series of perfect mechanism ofsupervision and restraint. At present, the outside and inside mechanism ofsupervision and restraint in the company in our country are not perfect.So, the company leans to the opportunistic choice in our country. Thescholars propose, in order to reduce the opportunistic behavior whilechoosing the accounting policy, the person who makes accountingstandard should narrow the choice range of the same accounting policy asmuch as possible. But, accounting standard and accounting system thatour country issued and revised after 2000 have entitled enterprises muchright to choose accounting policies. This is not identical with the scholar'sresult of study. The author plans to explore this question on the basis ofanalyzing current situation of the choice of accounting policies. At first, Concept of the accounting policy choice that the paperstudied has been defined. Then the paper analyzes the inevitability of theaccounting policy choice theoretically and the function on accountinginformation. Through the analysis of accounting methods that listedcompanies choose and non-standard auditor's opinion that CPA issue, thepaper means to discover the current situation of the choice of accountingpolicy, meanwhile, the paper will put forward the suggestion ofimproving. The paper divides into three chapters: Chapter one: the summary in the accounting policy choice Firstly, the paper reviews the history of the accounting policy,defines the accounting policy choice and discriminates related notion.Secondly, the paper analyzes the reason and inevitability of theaccounting policy choice on the basis of contract theory and public choicetheory. Hence,the paper proposes that we should treat the accountingpolicy choice rationally. Thirdly, the paper summarizes the documents ofother persons. Chapter two: The analysis of accounting policy choices of listedcompanies The paper selects 267 listed companies that are dealt at shanghaistock exchange as samples to study the accounting policy choices. In thehope of finding the regularity, to every alternative in all kinds ofaccounting policies, the paper shows with absolute number and relativenumber that counts how many listed companies adopt the method. And inorder to more clearly announce the main consideration when the listedcompanies choose the accounting policy, the paper shows the distributionbetween trade and achievement of the listed companies that choose thesame alternative. Finally, the paper studies the auditor's opinion issued byCPA to analyze the accounting policy choices of listed companies. Chapter three: Conclusion and suggestion Through descriptive statistics and analysis, we can draw a conclusionthat, on the one hand, the listed companies only pay attentions to the simplicity of alternative, so they use choose rights insufficiently; On the other hand, some listed companies utilize the accounting policy choices as main means to handle profits, to gloss over the accounting information. To solve mentioned problems, the paper suggests that it should confirm the choice range in accounting standard prudently, and guide th...