Research On Information Disclosure And Economic Consequences Of Listed Companies’ Benefit Plans

Under the new economic environment,the companies established a multi-level pension system in order to fit the market-oriented economy,in which the employee welfare system is becoming increasingly diversified.This trend makes the accounting treatment relating to the employee welfare harder.Besides,companies’ expenses on payroll is one of the most important component of labor cost accounting,it is also a kind of important information which should be provided in dealing with the charges of anti-dumping for Chinese companies.In the year of 2014,Chinese financial department issued the ‘9th term of accounting standards for business enterprises —— employee compensation’after revising,in which the new accounting treatment standard of post-employment benefits was added.Furthermore,the concept of defined benefit plans was proposed for the first time.Then the defined benefit plan becomes a hot topic for all stakeholders.Today,in China,the focus on study of defined benefit plans is about the comparison between the old and new accounting standards and the interpretation of accounting method.The problem of this situation is that the comprehensiveness and pertinence for information disclosure about the defined benefit plans was not taken into full consideration,as well as the economic consequences.Although,there are many foreign researchers pursued relevant studies about the economic consequences of defined benefit plans,the research achievements are not very helpful for Chinese economic environment.The author of this paper,based on the researching of available literature,analyzed the Chinese enterprises’ performances on information disclosure and economic consequences.At last,the author’s opinions and some advice were raised.In this paper,the author statistically analyzed the listed companies’ characteristics and their performances on information disclosure by adopting the combination of theoretical research and case study methods,37 companies which implement defined benefits plans were selected as study samples.The conclusion is that increasing debt burden,lacking of specific accounting standards and the lack of relevant talents are the main restraints of promotion of defined benefit plans.Then the case of Da Qin Railway’s was analyzed typically.After Having the awareness of the company’s situation and analyzing the defined benefit plans’ economic consequences by using case study method,the conclusion was given creatively,that,although the plan would bring some economic pressure to the companies,the information disclosure of defined benefit plans would bring a certain positive reaction to the market,moreover,the defined benefit plans can improve the old-age security of employees after retirement besides the on-the-job service cost accounting of employees,and promote the fully disclosure of the debt paying obligation of enterprises,what’s more,it can also improve the accuracy of accounting information of enterprises.In allusion to the findings come from analysis,the author provided improving recommendation from the view of accounting and information disclosure,expecting to find a new path for the development of defined benefit plans in China and the improvement of its accounting treatment,and provide some references for the perfection of relevant accounting standards.