Research On The Motivational Relationship Between Accounting Inherent Risk And Accounting Policy Choice

This article is a normative thesis, we learn from previous research achievements, the use of the basic principle of economics and management science, starting from incomplete contract theory to study accounting policy choice and accounting inherent risks.I believe that, accounting inherent risk is danger of person suffered loss by using accounting information. Because of hypothesis, the limitation of accounting theory and accounting standard make the space of accounting policy choice, and the accounting information cannot reflect economic facts. And accounting policies are accounting theory, accounting standards embodied. Researching by some scholars at home and abroad, We know it is precisely because the accounting policy choice is very obvious economic consequences, that makes accounting information can influence the management, investors, creditors and regulators, for the more, leading to destroy the development and consummation of capital market.Then in the third chapter, this article focuses on the incomplete contract theory and accounting policy choices, the risks inherent in the relationship between accounting. Following the incomplete contract theory, there must be some choice of accounting policy, accounting policy choice is based on the inherent risk drivers of accounting, is bound to come to the risks inherent in accounting exist. The logic underlying this conclusion is: the state of the contingent is not descriptive, the complexity of the environment, information asymmetry and the third party can not prove the object of uncertainty caused by the accounting transactions, the language vague, contracting costs are too high and has Inconsistent with the objective existence of industry information. Therefore the development of all manner, including treatment of all economic issues-oriented rules of accounting standards is not possible, is unrealistic. At the same time, incomplete contract theory also made it clear the best form of contract is "loose" and "close " to choose between contracts. Therefore, the best form of accounting standards is selected between the rule-oriented and pure object-oriented principles-oriented accounting standards, so that it has a wider range of adaptability. Under the guidance of the principles-based accounting standards accounting policy choice must exist, which makes the risks inherent in the existence of the necessity of accounting. Therefore, we conclude that the risks inherent in accounting is the direct result of the accounting policy choice, causes incomplete contract theory from the principle of decision-oriented accounting standards. Analysis of the theory is not enough to sufficiently illustrate the point. Therefore, in the fourth chapter, summarizes the development process of China's accounting standards, the parties emphasized the importance of the degree of accounting policy choice, and selected cases of four at home and abroad, with the fact that the choice of accounting policies led directly to the risks inherent in accounting.Finally, In the fifth chapter. First, we summarize the whole article and sort out, and then from a theoretical perspective, human factors and choice of accounting policies and other aspects of plain view. This paper holds that, Although we emphasized never fully contract theory to explain the accounting policy choice has its inevitability, but it can not ignore the people's self-serving nature of the impact of accounting policy choice, After all, the accounting policy choice has a strong economic consequences, with the management of accounting policy choice, they are likely out of self-interest "concern" to lobby on accounting standards setting. Therefore, in the process of accounting standards, it is necessary to take into account the human factor must also comply with the law of development theory. The development of accounting standards should conform to the development of incomplete contract theory inherent law, focusing on the principles of accounting standard-setting process-oriented guidance, but it does not mean the failure of human factors, and only follow the premise of scientific theory, the role of people can only be fully realized.