The Study On The Accounting Information Disclosure Of Consumable Forest Assets

Because of the particularity of consumable forest assets, their accounting confirmation and measurement are more difficult and complex than the general assets. Due to the information disclosure can provide relevant information for investors’ decision-making, true and reliable information can enhance the investors’ understanding of the consumable forest assets field which requires forestry enterprises disclose more relevant and reliable accounting information, so that investors are able to understand the field fully. It is thus clear that exploring on the accounting information disclosure of consumable forest assets has great significance, especially after the Ministry of Finance promulgated the "Enterprise Accounting Standards No.5-Biological Assets", the in-depth study on the accounting information disclosure of consumable forest assets is particularly important.This paper uses the comparative analysis, questionnaire survey, descriptive analysis method and so on to study the disclosure of accounting information of China’s consumable forest assets and analyzes the current situations, problems, related causes and suggestions etc. of the accounting information disclosure of consumable forest assets. The specific contents and conclusions include the following aspects:First of all, basing on reviewing the related bibliographies of biological assets and agricultural accounting standards, information needs of biological assets in foreign countries, as well as the accounting information disclosure of biological assets and forest assets in domestic, this paper analyzes the theory of accounting information disclosure. It points out that the efficient market hypothesis theory, game theory, cost-benefit theory of information disclosure and information asymmetry theory are the main theoretical basis of accounting information disclosure of consumable forest assets and makes analysis of the theories which lays the theoretical foundation for this study.Secondly, this paper analyzes the main forms and contents of accounting information disclosure of consumable forest assets, points out that disclosure in the accounting statements, notes to accounting statements disclosure and financial situation explanation disclosure are the main forms of accounting information disclosure of consumable forest assets currently and analyzes the important disclosure information of these different disclosure forms. On this basis, this paper makes a selection of2010annual reports disclosed by listed companies basing on the listed companies’industry classification guidelines announced by China Securities Regulatory Commission, selects and analyzes the annual reports of17listed companies which possess or control consumable forest assets and discovers these listed companies exist lack of the necessary tips of business risk, inadequate disclosure about the canopy density, disclosure of cost carry-over method in random, the strong subjectivity of fair value disclosure and other information disclosure issues.Once more, this paper uses the first-hand information obtained through questionnaires from experts and scholars to understand the related conditions of accounting information disclosure of consumable forest assets. On the one hand, we can understand the current situations and problems of accounting information disclosure of consumable forest assets from another point of view, on the other hand, it can make a preparation for the follow-up study according to information provided by the experts. At the same time, this paper makes cause analysis on the current problems of accounting information disclosure of consumable forest assets from the views of irrational equity control structure, self-serving motives and understanding of the management faintness, low quality of the financial staff, high cost of accounting information disclosure, imperfection of the law and regulation systems, weak supervision of China Securities Regulatory Commission as well as low practice quality of the intermediary organizations and so on. Then this paper puts forward some suggestions from improving the equity governance structure of listed companies and incentive mechanism of management, improving the overall quality of the financial staff and relevant laws and regulations, strengthening the supervision of the China Securities Regulatory Commission and promoting the practice qualityof CPAs and other aspects.Finally, some conclusions have been made after careful study. First, the experts recognize the fair value is the most ideal measurement attributefor the consumable forest assets due to its advantages such as forward-looking, correlativity etc.; second, the fair value has not yet been widely used in practical work because there exists more limiting factors which restrict the use of fair value; third, it should apply several ways of disclosure synthetically to provide adequate accounting information for the information demand party. But the survey results show that the combination of disclosure in the accounting statements and the disclosure of notes is the best way of accounting information disclosure for the forest resource management entities to disclose information; fourth, the existing physical quantity and value quantity of forest assets, increased or decreased changes of physical quantity and value quantity and the category of forest assets are the most important contents of information disclosure. Then the accounting estimate and accounting policy, the mortgage and guarantee of forest assets as well as the related risk indications also should be considered when disclosing information.