Research On The Policy-Oriented In China’s Accounting Standards Setting

With the progress of science and technology, worldwide countries exchanges and cooperation, international intercourse becomes increasingly frequent. As a general business language, the international convergence of accounting has been an irresistible trend. On15.Feb,2006, China’s Ministry of Finance issued new accounting standards system, which included a basic standard and38specific standards. At the same time, the international convergence of accounting standards has been worked for, this accounting standards system took into account the specific economic environment and the special situation of our country, made some special regulations to curb profit manipulation, the application of the fair value measurement and disclose related trade.At present, there are three major types in the making foundations of accounting standards: rule-oriented, principles-oriented and goal-oriented. The three different making foundations of accounting standards are on behalf of three different guiding ideology during the establishment of accounting standards. Standard-setting of any country and region should be based on the respective national conditions, to serve their own economic system and economic system. The institution of China’s accounting standards is no exception. The special regulations in our accounting standards are contrary to the general accounting theory and accounting principles, emphasis on service for the policy of the state. These special regulations follow the policy-oriented than the simple rule-oriented, principles-oriented or goal-oriented. Therefore, in the current accounting environment, it is important to study which aspects of our accounting standards reflect the policy-oriented, what impact to execute the policy-oriented of accounting standards, how the policy-oriented be applied to improve the quality of standard-setting better.This paper elaborated on the basis of related theory, summarized the advantages and disadvantages of accounting standards three development-oriented, analyzed the application, proposed policy-oriented in accounting standards setting creatively. The policy-oriented is the establishment of accounting standards is based on the current accounting environment of the state and focuses on the national economic policy, so that the accounting standards are invested with macro function. This paper combined with Chinese accounting standards, explored the performance and causation of policy-oriented and analyzed the impact of the implementation of the policy-oriented from the quality of accounting information, accounting theory, socio-economic development and the international convergence of accounting standards. According to the analysis results, this paper put forward the proposal to improve the policy-oriented of our accounting standards setting, including the defining of accounting standards should base on state conditions, properly balance the relationship between policy-oriented and the international convergence of accounting standards, operate the policy-oriented of accounting standards cautiously.