Research On Chinese Financial Accounting Conceptual Framework

The conceptual framework is a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards and that prescribes the nature, function, and limits of financial accounting and reporting standards. Creating a coherent, coordinated, consistent financial accounting conceptual framework as the conceptual base and theory guidance of financial accounting is deep-rooted. In February 2006, the revise of the Accounting Standard for Business Enterprises:Basic Standard is considered as the first step of setting up our own conceptual framework. Professor Ge Jiashu proposed that creation of conceptual framework in China should be divided into two steps. "First, revise and strengthen the present basic standard; next, change the basic standard into a global accepted framework at the proper opportunity. The revised basic standard exposed its limitations during the past years. It is time to build the Chinese conceptual framework.This paper mainly adopts the standardized study method. Author analyses the latest foreign research, combining the Chinese actual conditions and the expectation of future development, and come up with proposes on the creating of conceptual framework.Firstly, this paper describes the context and significance of conceptual framework research, and concludes the domestic and foreign achievements about conceptual framework. Then this paper analyzes following the logical order of 'objectives of financial reportingâ†'Qualitative characteristics of accounting informationâ†'accounting elementâ†'accounting element recognitionâ†'accounting measurement and reporting.' Throughout this paper, every component of the framework works in concern with the accounting objectives, and keeps them logically consistent. For the accounting objectives, in the context of present circumstance and the expectation of future development, this paper believes the 'stewardship perspective' and 'decision-making utility perspective' are not contradictory, both of them are the right accounting objectives; For the qualitative characteristic of accounting information, this paper divides the qualitative characteristics of accounting information into primary qualitative characteristic and secondary qualitative characteristics according to the latest research achievement and the real context. For the accounting element and its recognition, the paper expansion the recognition boundary, rebuild the accounting element, and consider the qualitative characteristic is the standard of recognition. For the measurement and reporting, the double-measurement model is suitable to Chinese reality. The double-measurement model comprises historic cost and fair value. According the weakness of present reporting, the paper enlarges the scope of financial report to meet the requirements of different users, and changes the presentation of financial statement to provide detail information and to keep in consistent with the measurement model.