Utilization Of Accounting Policies To Manipulate Accounting Information

In today's rapid economic development,the development of enterprises is varied,the quality of financial information at this time is particularly important.But the accounting confirmation,measurement,recording and reporting and accounting policies are all related.Therefore,the use of accounting policy whether appropriate directly impact the accuracy of corporate financial information,thereby affecting the socio-economic optimization of resources allocation and the healthy development of economy.But with the development of new guidelines,companies have a greater choice of accounting policy.Relevant state agencies wanted to make it more realistic reflection of the enterprise by giving operating appropriate selection,but actually it constitutes some means of enterprise management authorities to gain unfair advantage,leading to distortion of accounting information,and resulting in a negative economic consequence.Therefore influence the choice of study in accounting policy for profit manipulation is particularly important.Because in our country,the studying the choice of accounting policy is late,earlier studies are always normative research.Therefore,this article study the question that impact on the profit manipulation of accounting policy choice by a example.This article discriminate the difference between the accounting policy choice and manipulation of accounting policies at first,explain the relation of accounting policies and earnings management theory,the connection of contract theory and the theory of rent-seeking.Then analyzes how A company use the accounting policy to manipulate profits from fixed assets transferred from construction in progress extension,less mention bad debts,government grants.Coming to the conclusion that choice of accounting policy significantly influence the accounting information,and the use of different accounting policies will be different results of operations.Finally,put forward four suggestions for preventing the use of accounting policies to manipulate accounting information,which are improve accounting standards and related laws and regulations,enterprises should optimize the internal accounting system,accounting information users should strengthen the understanding of corporate accounting policies,audit departments should strengthen supervision efforts to ensure fair audit reveals.Hope to be able to give a help in optimizing the enterprise accounting policy choice.