The Study On The Effect Of Accounting Information To Capital Regulation

Finance plays an irreplaceable role in the economic development of the world, which is the core of modern economy. The financial system is the core places of the allocation of social capital and resources. Currently the main body of the financial sector includes banking, securities and insurance. The acceleration of financial integration and complexity, liquidity, extension and intangible characteristics of capital, regulatory authorities must determine the multi-angle, multi-level financial regulation to ensure the security and stability in financial markets. And the capital supervision is the key means of financial regulation, specific to the banking, securities and insurance industries, respectively, expressed as capital adequacy ratio of banks, net capital of securities companies and solvency regulation of insurance companies.In the capital regulatory system, the capital is a core concept, regulatory capital and accounting capital has connections and differences. Meanwhile, capital regulation itself is closely linked with financial accounting. Information on capital regulation based on the financial information; On the other hand, the regulation capital information will be counter-productive in the financial accounting information. Since the objectives between accounting and regulatory are different, the current accounting standards and regulatory requirements is a general trend of discrete, but the two are not diametrically opposed, there is a method to meet the quality of accounting information requirements and the regulatory requirements of regulatory authorities. This paper attempts to analyze the impact of accounting information to capital regulation in the context of the new accounting standards, and propose specific suggestions to improve accounting standards based on the linkages between accounting information and capital regulation, in order to further strengthen our capital regulation.The article is divided into five chapters. Chapter 1 is an introduction, describes the research background and significance, research ideas and frameworks, research methods, expected contributions and shortcomings; Chapter 2 is literature review, from the effectiveness of capital supervision and financial accounting information's impact of capital regulation to evaluate the existing literature; Chapter 3 is.theoretical analysis of capital regulation and financial accounting information. This part introduces the concept of capital regulation, meaning, content, and the three main capital regulation's specific financial indicators, describes the difference and contacts between regulatory capital and accounting capital, and analyzes the capital regulatory information and financial accounting information's interaction; Chapter 4 is research on the impact of capital regulation from the financial accounting information, analyzing the fair value in the new accounting standards how to impact the financial assets and liabilities then to the capital supervision, and then analyzing the impacts to capital supervision based on capital adequacy ratio, net capital and solvency from finance accounting information; Chapter 5 is based on accounting standard point to think of how to improve capital regulation.The main contribution of this paper are:first, from a financial view to analyze the issue of capital regulation; second, targeting the three main financial, revealing the relationship between financial accounting and capital regulation; third, based on the financial perspective, put forward proposals of capital regulation's improvement. However, due to the limited knowledge of the author, and the limitation of this paper-based methods, the problem may be involved in the analysis is not comprehensive and deep enough, also lacking of the specific and completion cases and data to support.