Research On The Choice Of Government Subsidy Accounting Policy Of H Company

In recent years,it is common for companies to receive government subsidies.The amount of government subsidies is increasing year by year,which has a great impact on the company's performance and information disclosure.As a way for the government to directly participate in and intervene in the enterprise economy,government subsidies have their own specific objectives,including supporting industrial development,encouraging R&D,increasing employment and turning losses.China's Accounting Standards for Enterprises No.16-Government Subsidies has made detailed norms in the initial confirmation,subsequent measurement and information disclosure of government subsidies.At the same time,it leaves a certain space for companies to choose accounting policies when dealing with government subsidies.In practice,the choice space left by the standards causes inconsistencies in accounting treatment of the same practical problems.For the motivation of profit manipulation,company management may interfere with the choice of accounting policy,affect the quality of accounting information,not conducive to the long-term development of the company,but also affect the efficiency of the use of government subsidy funds to a certain extent.Based on the above background,this paper chooses H company as the research object.H company is a typical agricultural industrialization leading enterprise.It receives a large amount of government subsidies every year,which has the effect of turning losses into profits.Based on the literature research and related theories,this paper carries out a case study on the selection of government subsidy accounting policies of H companies.Firstly,based on the externality theory and the soft budget constraint theory,combined with the specific situation of H company,the reasons for the company's obtaining government subsidy are explained.Then,from the contract theory,the motivation of the company's management accounting policy choice is obtained,combined with the selection space for confirmation,subsequent measurement and information disclosure of the government subsidy accounting standard.Analysis of the results of the government subsidy accounting policy selection made by the management of H company.On this basis,it is found that the choice of government subsidy accounting policy of H company deviates from the government's goal: First,it chooses to confirm that the government subsidy when itdoes not meet the conditions inhibits the company's technological innovation;second,it chooses to classify the asset-type government subsidy into income-like deficiency the company's profitability;the third is to choose not to disclose funds to give the company management the opportunity to abuse subsidy funds.Further analysis shows that the reasons are driven by the motivation of corporate management to manipulate profits,imperfect corporate governance,unreasonable accounting system and lack of external government supervision.Because the unreasonable choice of accounting policy will lead to the distortion of accounting information and is not conducive to the long-term development of the company,the article finally proposes that the choice of government subsidized accounting policy should be standardized from both internal and external aspects based on stakeholder theory.