Accounting Policy Choices Research Of Listed Companies In China

With the development of China’s market economy, the number of listed company in China isconstantly increasing. In order to make the accounting information of listed company more ofrelevance and reliability and promote the healthy development of China’s capital market,“Accounting Standards for Enterprises” was carried out by Chinese government in2006. And thenit has been constantly refined and improved subsequently. Especially, listed company in terms ofaccounting policy choice is being regulated and adjusted continually in order to improve it to adaptto the economic development better. Although “Enterprise Accounting Standards” is striving forperfection, there is still a problem to some extent. Particularly there is still a huge loophole whenlisted company chose the accounting policies. Such as a lack of consideration to the interests ofenterprises; the shortage of financial accounting information disclosure. Therefore, this paper aimsto research how should listed company choose reasonable accounting policies.This paper firstly analyzed the provisions of the public company accounting policy choices,secondly combined with the current situation of China’s listed company accounting policy choicesto research the accounting policy which is chose by the current China’s listed company and discussthere are several disadvantages to be improved. Thirdly, on the basis of stakeholder theory, it isshowed that listed company should treat the interests of stakeholder as an important consideration.Finally, the suggestions and measures for China’s listed company accounting policy were pointedout.