The Research On The Adoption Of Chinese Enterprises Accounting Measurement Attribution From The Perspective Of Cost-benefit Principle

The debate on the adoption of accounting measurement attribution, triggered in financial crisis, made the choice between historical cost measurement and fair value measurement up to the hottest topic. Throughout the whole development of accounting, we can find out the adoption of accounting measurement isn’t fixed. As a matter of fact, it is extremely variable, particularly in the respect of practice, due to the complexity of commodity use value. Therefore the research on the costs and benefits incurred by the adoption of accounting measurement attribution is definitely of important theoretical value and practical significance in picking out the most appropriate measurement attribution that aims to reconcile the period difference.Like any choice made by any rational person in the economic market, the adoption of accounting measurement attribution must comply with the "cost-benefit principle". As the origin of all economic concepts, the cost-benefit principle in this research alone means:in a specified period of time and under a given economic circumstance, the cost incurred by the adoption of accounting measurement attribution must be guaranteed not to exceed its benefit. Besides the judgment standard of the adoption of accounting measurement attribution should be based on the extent of the benefit and the cost.With the review of the studies on the definition and adoption of accounting measurement attribution, this paper firstly, from the theoretical point, analyzes the impact of objectives of accounting and qualitative of accounting information on the adoption of measurement attribution. Then based on the comparison between historical cost measurement and fair value measurement, the paper goes further to examine the cost and benefit incurred by the adoption of accounting measurement attribution, and discovers the two key influential factors namely, the existence of orderly market and the technologic level. Besides, the paper also discusses the special and significant features and different preferences of accounting information suppliers and demanders in post-financial crisis era in China, and finally comes to the conclusion that mixed-measurement attribution proves more effective appropriate for Chinese market in post-financial crisis era in terms of accounting measurement attribution. To verify the truth of this conclusion, the author, by using an improved Ohlson(1995) model, explores the correlation between stock returns of the A-share listed industrial companies in China and their profit and lost from fair value changes per share in2007and2010respectively.At last, this paper points out the challenges facing the implementation of mixed-measurement attribution in post-financial crisis era in China and recommends a set of relevant constructive and tentative solutions, including issuing detailed guidance for relevant standards, strengthening financial supervision, establishing the disclosure-oriented mixed-measurement attribution application pattern, and improving the professional quality of accountants.