Research Of Construction For The Enforcement Mechanism Of Accounting Standards In China

Under the circumstance of globalization,the regulator internationalized the accounting standards to improve the accounting information quality and financing capablity of our capital market.However,the current situation of accounting information qulity is still negative.According to a supervison circula issued by CSRC,a review of listed companies’annual financial statements of2011conducted by Shanghai and Shenzhen Securities Exchange discovered about9053mistakes,and about58%of mistakes are financial accounting problems.This proves that the quality of acconting information is still poor.PAT and Economic Consequences believe that the corporate management will choose the accounting policies based on motives like salary,debt contracts,political costs during the enforcement of accounting standards.This will twist the proper application of accounting standards.So,the accounting standards’internationalization and the building of accounting standards enforment mechanism should be implemented at the same time.The research uses the normative and empirical methods to explore how to build the enforcement mechanism.Firstly,based on the review of relative literature,this paper analyzes the basic theory of building enforcement mechanism and inllusrate the meaning,three major intergrants of it.Secondly,using the data of listed companies of China’s A-share market from2002to2011,this article conducts empirical research on the Value Relevance of annual financial statements of listed companies to evaluate the accounting information quality. The study shows that meliorating the accounting principles sololy can’t raise the quality and demonstrates the necessity of building enforment mechanism.Finally,this paper analyzes enforcement mechanism of UK and USA to provide future refenrence for building our own mechanism.