Oil and gas (O&G) play an important role in the national economy. Therefore, China government has spent a lot of energy on making the accounting policy of O&G industry. China State Ministry of Finance promulgated the new Accounting Criteria for Enterprises (ACE) in February 2006. In the ACE, there is the O&G accounting standard which includes accounting methods of identification, measurement and disclosure. This is the first time O&G accounting standard appears in the ASE.Firstly, this paper introduces the research background and reviews relevant papers about oil and gas accounting standards and accounting quality. Secondly, the paper analyzes the difference of the characteristics of accounting information among countries, and points the main factors of information quality. Thirdly, the paper compares the new O&G accounting standard with the old one, and use theoretical and empirical approach to evaluate accounting quality of Sinopec Group. Finally, it gets the conclusion that the new O&G accounting standard improves the accounting quality. Besides, some policies proposals have been made based on the analysis. |