Research On The Ratio Of Income And Expense

In 1992 the ministry of finance issued enterprise accounting standard, the rules contentsthirteen basic principles, including the matching principle, which shows the great importance of the matching principle in accounting standards. But in the new criterion the matching principle has been cancelled since the 2006 edition of accounting standard for business enterprises.Causing that a lot of people contempt the matching principle, and that some people even think that matching principle don’t need to be considered in accounting.However, policymakers cancelled the matching principle based on the premise that the accountants have been fully aware of the importance of the matching principle, so as to make the whole basic principles more concise, clear. However, the lack of matching principle has caused a lot of negative effects to our country accounting practice and the theoretical field. As a result, the matching principle needs to be valued. Based on the importance of the matching principle, especially the matching degree of the judgment of the quality of surplus and the function of the accounting major, this paper mainly studies the development trend of the matching degree over the past twenty years, and the factors influencing the matching degree.Based on China’s manufacturing listed companies as the research object, this paper mainly study the revenue and expense ratiomanufacturing industry in 1993-2014, and find the development trend of revenue and expense ratio level of manufacturing listed companies in our country during this period. In order to analyze the factors influencing the matching degree ofthe revenue and expense ratio, this article decomposethe total cost, and will find out the main cost project in the fee structure that affect the matching degree. Then, this article also through empirical study explores whether the reform of accounting standards is the impact on the rate of revenue and expense ratio.Through empirical study found that: 1, the degree of revenue and expense ratio of manufacturing listed companies in our country presents first decline after the rising trendduring the nearly 20 years, and also conclude that revenue and expense ratio quality drops continuously in our country, and then rise. 2, the cost was gradually decomposedinto operating cost,other cost and production cost, periodic expenses, other costs, this paper found that the change of the matching degree of the expenses and incomeduring the period of is resulting in operating cost and income ratio, and the changes of the fee structure is a factor that influence the degree ofthe revenue and expense ratio. 3,in order to analyze, this paper decomposeall the data into four stages and find that in 1998 and 2001, the implementation of the accounting standards for enterprises reduced the revenue and expense ratio of manufacturing industry in our country. While the implementation of accounting standards for enterprisesin 2007, improved the revenue and expense matching degree of our country’s manufacturing industry. Thus draw the conclusion: the promulgation and implementation of accounting standards, to a certain extent affect the revenue and expense ratio. According to the conclusion, this article also puts forward relevant policy suggestions.