Research On The Related Party Transactions Accounting Regulation Of Listed Companies

Accompanied by the development of the multinational corporation and group company, the related party transaction grew and is gradually developing. On one hand, it can reduce transaction costs, improve the listed company's operating efficiency and strengthen the group company's capital operation capability, to realize the profit maximization of enterprise groups and the overall strategic goals. On the other hand, the listed company uses the related party transaction to adjust the listed company's profit, transfer the risk and evade the tax, which seriously impede the orderly operation of the securities market and damage the interests of investors and creditors. Both of the parties tend to use the control, common control or significant influence to adjust the listed company's profit as a result of the weakness of our regulatory system and the lack of regulation means and methods. Facing the frequency of the related party transaction, the relevant regulatory authorities have issued a series of laws and regulations to checks and criteria the related party transaction, although it restrain the occurrence of the unfair transaction, the result is not comforting, which is because of the diversification and concealment of the related party transaction's forms and methods. China Accounting Society issued "The ten greatest risks in the field of certified public accountants needed to be concerned" in January 4,2011, the associated party relations and transactions is in the fifth, it has become the highlight and difficulty of our securities market regulation.In recent years, there are many insightful literatures about the related party transaction, and the problem of the related party transaction has been the hot point of the domestic and international accounting field. Throughout the research achievements of the regulation of the related party transaction, they mainly focus on the disclosure and regulation of the related party transaction, and the improving and complement of the accounting rules and regulation rules. And they are more for normative analysis and lack of data support. Since China is still in the spontaneous phase of accounting regulation and lack of systematic research and theories, the researches about accounting regulation of the listed companies' related party transaction are few. In view of this, this paper attempts to define the regulation of accounting, to study the accounting regulatory issues of the related party transactions from the aspects of information disclosure standards, corporate internal and external accounting regulation. At the same time, this paper takes the data of the listed companies' related party transactions from 2007 to 2009 both in Shanghai and Shenzhen cities as the sample data to analysis the accounting regulatory problem of the related party transactions empirically, to reveal the reason and learn the effective foreign accounting regulatory experience of the related party transactions, and to suggest some operational countermeasures combining with our country's reality.This article comprises five parts:the first part is the introduction, which introduces the background and significance of this thesis, research content and methods, and the domestic and foreign literature review. The second part is the research base of the listed company's business accounting regulation, which tries to define the accounting regulation of the listed company's related party transaction from the angles of internal regulation and external regulation on the basis of the definition of the related party and transaction, and describes the characteristics, species, contents and objectives of the accounting regulation. The third part is the review of the listed company's business accounting regulation, which describes the evolution of listed companies' related party transactions, analyzes the problems of accounting regulation combined with our country's facts, and carries out reasons from three angles of the normative of accounting information, internal accounting regulations and external accounting regulations. The fourth part is the positive analysis of the problems of the listed company's accounting regulation, which analyze the effect of the accounting regulations of the listed company's related party transactions to find out its defects and weaknesses, through the trend analysis of the normative of the disclosure of the accounting information, the positive analysis of the relationship between company internal accounting regulations, public accountants audit opinions and related party transactions. The fifth part is the proposal to perfect the accounting regulation of the listed company's related party transactions, it suggests to improve and reinforce the accounting regulation in three ways, which are the information disclosure of the related party transactions, company internal and external accounting regulations.As the sample data in this study is in a larger size, so the data of the size of the related party transactions is from the database, rather than by manually collecting the listed companies' annual reports. However the commercial databases do not cover all of the listed companies' related party transactions, this paper can not comprehensively analyzes the problems of accounting regulations of the related party transactions, so the result will be affected. In addition, the author attempts to define the accounting regulation, but because of the limit of academic standards and research capabilities, it is not defined fully and systematically, which is to be studied in the future work and study.