Accounting Information Distortion Of Legal Regulation

Accounting information is the most important economic information in the market economy, which is required by enterprises for their own management and strategic development, by investors for their investment return, by governments for their knowledge of whole national economy situation and formulation of macroeconomics policy. Without accounting information, the market economy does not work well. In a word, accounting information is the basis of market economy. However, accounting information distortion exists generally in the actual economy, not only in our country, but also in foreign countries. Especially in recent years, the storms of accounting fraud have occurred all over the world, which results in great loss for investors and creditors, mistrust in accounting information and decrease of confidence in capital market for the pubic and serious destruction to the market economy order. Struck by a series of accounting fraud scandals continuously, many experts and scholars from various fields began to reflect, discuss and research into accounting information distortion and put forward their own theories and solutions. But these theoretical researches were almost from accounting and economics. Legal researches can hardly be seen. Therefore, the overall and systematic legal research of accounting information distortion is of great importance in theory and in reality. This thesis is divided into four parts expect for the introduction and the conclusion, which has about 48,000 words.Part Ⅰ, accounting information and accounting information distortion. This part mainly gives a brief introduction to two important concepts in this thesis. Firstly, this part introduces briefly the concept and quality characteristics of accounting information and concludes four basic principles of accounting information disclosure. Secondly, this part makes a legal definition of the concept and standard of accounting information distortion and analyses its origin and harm.Part Ⅱ, the economic and legal analysis of accounting information distortion. This part is the theoretical basis of this thesis that has chosen more reasonable systematic design by analyzing and comparing the theoretical basis of voluntarydisclosure and mandatory disclosure. Economic analysis compares the advantages and disadvantages of the two systems and has drawn a conclusion that the mandatory disclosure is preferable. Legal analysis focuses on the reasonable excuse that mandatory disclosure can guarantee the fairness of accounting information disclosure and promote the allocative efficiency of economic resource.Part Ⅲ, comparison of anti-accounting information distortion legal systems between China and foreign countries. This part is constituted of two parts. Part A introduces briefly the legislative history and achievements of developed countries in West (mainly UK and USA). Part B introduces legislative systems and current situation in China, and makes a deep analysis of special factors in our country that accounting information distortion is mainly caused by administrative intervention. The purpose of this part is to observe and compare the same and the difference between China and foreign countries so that we can learn some good systems and experience from foreign countries.Part Ⅳ, countermeasures of accounting information distortion. As the last part, this part is the key of this thesis. On the basis of above analysis and statements, this part establishes a legal system against accounting information distortion. This legal system consists of four parts. Part A, improvement of anti-accounting information distortion legal system. Part B, preventive mechanism of accounting information distortion, which consist of four measures: 1) to establish a multi-sided and multi-leveled accounting supervision system; 2) to perfect corporation governance; 3) to improve certified public accountant (CPA) system; 4) to reinforce accounting profession ethics and good faith ideology. Part C, legal responsibility and legal relief. Firstly, we should explicate the burden of legal responsibilities, accelerate legislation of civil legal responsibility and aggravate legal responsibility of accounting fraud Secondly, we should reform the current representative action of our country, courage victims to bring an action actively and simplify the complex judicial procedure for legal relief.