Research On Behavior Of Listed Companies’ Accounting Policy Choice In China’s Communication Equipment Manufacturing Industry

Since late1970s, the development of China’s accounting policies went through nearly30years. In the course of development, China’s accounting standards are becoming moresystematic, scientific and standardized, and gradually adapt to national standards. With thecontinuous development of China’s accounting policies, listed companies get more rightsin accounting policy choice. Communications equipment manufacturing industry is atechnology-intensive industry, also the backbone of China’s telecommunicationsinfrastructure, and is one of the national focuses on promoting the development ofhigh-tech industry. In addition, although the theoretical study of accounting policy choiceis a lot, but the research on the characteristics of industry-specific accounting policychoice is rare. Therefore, research on accounting policy choice of communicationsequipment manufacturing industry has theoretical and practical significance.Firstly we discuss related concepts of accounting policies choice and makecomparative analysis, and then sort out the motivation of the choice of the accountingpolicies, affecting factors and economic consequences theory. Based on the analysis ofaccounting characteristics of communications equipment manufacturing listed companies,communication equipment manufacturing companies showed larger R&D investment,shorter inventory cycle, faster fixed assets update. We select31domestic listed companiesin communications equipment manufacturing industry as a sample, using2009-2011annual report data of the sample, and make descriptive analysis on the sample in themethod of inventory valuation, depreciation of fixed assets, amortization of intangibleassets and provision for bad debts. We also provide advice to the accounting policy choiceof communication equipment manufacturing companies, and provide some referenceinformation to policy-makers and securities regulators.