The Research Of The Listed Companies’ Extraordinary Item Disclosure

The users of accounting information are mainly investors, creditors, etc. Generally, they appraise company’s profitability and make investment decisions, according to the accounting information disclosed by listed companies. Under such circumstance, it is necessary to improving company’s accounting information disclosure quality, which is the precondition for users to obtain decision-useful information. Non-recurring gains and losses have characteristics of "abnormal" and "non-recurring". It is easy to be used as tool for whitewashing profit by listed companies, which will mislead accounting information user’s judgments and decisions. Besides, it is bad for company’s sustainable development and the healthy development of the securities market. Disclosure regulation of non-recurring gains and losses had been regulated for many times since it was first released by CSRC(China Securities Regulatory Commission) in 1999. Even though its regulatory had achieved some results, there are still many problems exist, which will seriously affect the quality of accounting information. It is not conducive to the achievement of disclosure goals for extraordinary gains and losses. This paper found the problems of non-recurring gains and losses disclosure by analyzing its status among listed companies. We provided constructive advices for improving its disclosure, so that the accounting information users can correctly understand its meaning, and pay more attention to it. It is helpful for them to appraising business performance in a scientific way, thus to making right judgments and decisions.Firstly, this paper explained the theoretical basis of disclosing non-recurring gains and losses. Under this circumstance, were researched its disclosure from theoretical and practical aspect. By a theoretical aspect, we compared the differences of the requirements between United States, Britain, the International Accounting Standards Board(IASB) and our country. This can provide a reference for improving the disclosure of non-recurring gains and losses in our country. By a practical aspect, we researched the current situation in our country for disclosing non-recurring gains and losses. We used the data of Shanghai A-share list companies from 2011 to 2013 as sample. Statistics showed that there still exist many problems for its disclosure, such as inconsistent form of disclosure, inadequate disclosure, vaguely defined of disclosure items and etc., which exposed the deficiencies of its disclosure in standardized formulation, implementation and supervision. This will seriously affect the quality of accounting information for the securities market. Combined a both theoretical and practical analysis, we finally proposed some suggestions to regulate the disclosure of non-recurring gains and losses, which including improving the formulation of regulations and strengthening implementation and supervision. Specifically,1) In terms of norm-setting aspect, we suggest increasing the criteria for provision of non-recurring gains and losses, and strengthening the division of labor and coordination between the various departments; For improving the content of regulation, we suggest making a clear definition and unifying disclosure format of non-recurring gains and losses. Specifically, we proposed distinguishing non-recurring gains and losses as a separate item in the income statement, and tired to make a new income statement for reference; 2) in the implementation aspect, we presented strengthen the training and guidance for accounting staff, improving the corporate governance structure; 3) on the regulatory side, we recommended improving the auditing for non-recurring gains and losses, and strengthening punishment mechanism for disclosure violations.