Non-recurring Profit And Loss Accounting Norms

Since the CSRC required the disclosure of net profits after nonrecurringgain and loss in annual financial reports by its listed companies in 1999, it hasbeen of great concern among domestic accountants and relevant regulatoryinstitutions on how to standardize the accounting of the NGL. This paperdiscusses the nature of the NGL and the incentives to manipulate profits bythe NGL, analyzes the condition of the NGL accounting in our recent capitalmarket and carries on an in-depth study on the IAS, APB, FRS and CSRC'srelative standards in the aspects of conception, certification and disclosuremodes of the NGL. On the basis of these analyses above, we manage toconclude some constructive suggestions to the development of the NGLaccounting.The paper consists of five chapters. In the first chapter, we review somerelevant thesis about the NGL accounting and put forward the meaning andthe objective of this research. The second chapter discusses the essence ofNGL from the viewpoint of profits quality and the agent relationship. Thethird chapter is the main body of this paper. We compare the regulation aboutNGL in several organizations in foundation of the conclusions of the relevantregulatory in these organizations. In the forth chapter, we analyze our viewsof the incentives to manipulate profits by the NGL and summarize themotivations of profit management and the general measures taken by thelisted companies in china. At last, we put forward some suggestions in theaspects of accounting treatment mode and regulatory.