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Analysis of listed companies accounting information distortion problem

Author: HuChunMei¡¡XuLi From: www.yourpaper.net Posted: 2009-10-13 14:41:15 Read:
[Abstract] accounting information, whether for a business or for society as a whole, are very important. The first life of the accounting information is true and reliable, content integrity. Accounting information of listed companies in particular, is the most important basis for investors to make informed investment decisions. Distortion of accounting information would seriously affect the correct judgment of the users of the financial and accounting reports, however, the accounting information of listed companies in China, information distortion level is not low, and has evolved into a more serious social problem, endanger the normal development of the securities market worth we pay more attention to. After the implementation of the new accounting standards, the accounting information put forward higher requirements. Accounting information distortion causes of the analysis, and accounting information distortion proposed the corresponding countermeasures.
[Keywords] listed company; accounting information distortion; hazards; countermeasures

Article 12 of the "Accounting Standards for Business Enterprises - Basic Standard" provides that "enterprises should be based on the actual transactions or events occurred as a basis for accounting recognition, measurement and reporting truthfully reflect the recognition and measurement requirements of accounting elements and other relevant information. to ensure true and reliable accounting information, content integrity ", the authenticity of accounting information is the most fundamental requirements of the accounting information quality requirements. Current accounting information distortion phenomenon is still very common, accounting information distortion not only to the huge economic losses caused by users of accounting information, but also disrupt social economic order, hinder the normal development of the social economy, the degree of distortion of deep, broad scope, endanger large, attracted the close attention of the community, resulting in a "credibility crisis" of accounting information. Distortion of accounting information covers a wide range of distortion of accounting information, as long as the disclosure of accounting information and corporate enterprise does not match the actual situation, and can be called. Therefore, in-depth analysis of the impact of accounting information distortion factors, and then look for management accounting information distortion countermeasures become a problem of considerable practical significance in the current accounting and auditing standards in the reform process.

Public Company Accounting information distortion manifestations hazard

(A) distortion of accounting information of listed companies manifestations. Listed companies, although the new accounting standards promulgated its implementing to curb distortion of accounting information to a certain extent, but the overall quality of accounting information in China is also unsatisfactory, more the problems of recent years, China the occurrence of a large number of cases of accounting information distortion analysis, can be found, accounting information distortion mainly of the following forms:
A listed company fraud violations, out on the operation and management of special purpose, intentionally concealed or fictitious transactions; deliberate distortion or unwilling to disclose details of real information; underestimate losses overestimate the income of the listed company's financial information is not true listed companies to use improper accounting methods to provide with significantly misleading financial reporting to whitewash the results of operations, accounting information is untrue, inadequate disclosure of accounting information, not timely.
2. Accountants abuse judgments using their professional judgment, non-fair expression of the accounting matters, resulting in distorted accounting information. For example: "Accounting Standards for Business Enterprises - Basic Standard" Article 17 "accounting information provided by the enterprise and enterprise financial position, operating results and cash flow should reflect all significant events or transactions. Enterprises to provide accounting information should follow the principle of importance, the importance of principle, which allows simple handling, exception handling unimportant matters, but for the importance of the criteria, both from a qualitative or from the amount of new standards are not in a position to make provisions. Operational matters whether the judgment will be accounting personnel, different accounting staff the importance of judgment made by the same economic issues that may arise differences, this difference will be a direct result of the inconsistencies of the accounting treatment of the same subject matter. Many accounting matters precisely because of the arbitrary judgment of the accounting staff led to a large number of accounting information distortion.
Accounting personnel mistakes in the process of accounting errors. Lack accounting expertise, or careless errors in the accounting process, resulting in inaccurate accounting information. For example: the new accounting standards promulgated a great impact on the accounting profession. Compared with the existing accounting system, updated more, many accounting personnel accustomed to the implementation of the accounting system, the corresponding subjects of "borrowing" and "loan" to inform the accounting business occurs, but the new accounting standards governing the recognition, measurement and columns the general principles of the newspaper, not even specific subjects name, which makes part of the accounting in the accounting process prone to error, misuse of accounts to falsifying accounting detail, resulting in distortion of accounting information.
Accounting Standards there are some limitations, the number of listed companies on the use of the defects in its corporate accounting standards and financial accounting rules exist larger accounting policy options, engage in "stunts", accounting information can not be impartial reflect the business situation of enterprises. The strong randomness provision for bad debts; issue of inventory valuation method for a variety of options; the provision for the impairment and reversal; depreciation policy adjustment; using accounting corrections of errors; early recognition of revenue manufacturing distortion of accounting information.
For example: "Accounting Standards for Business Enterprises No. 1 - Inventories 14 provides enterprise should be using the first-in, first-out method, the weighted average method or the specific identification method to determine the actual cost of inventories. New inventory accounting method, the abolition of the "last-in, first-out" method, for the original last-in, first-out inventories using the LIFO method of electrical equipment manufacturing company, such as a lower turnover rate companies in raw material prices continuing to decline once the change is a first-in, first-out method, costs will rise sharply, the gross profit margin of rapid decline in profit for the period would significantly decrease. Change the method of valuation to the company in terms of the production of cables, transformers, due to the current international market, the rising price of non-ferrous metals, will appear opposite result. This change in measurement attributes will produce distortion of accounting information.
(B) the distortion of accounting information of listed companies hazards. The Public Company Accounting information distortion would bring serious harm:
For the state and society, the distortion of accounting information will result in a huge loss of state-owned assets, the national income disorderly assigned to lead the national macro-control policy and tax policy is not working properly, seriously disrupting social and economic order, normal social and economic development is blocked , the stock market and its overall national economic construction chaos, a serious credit crisis. Will also have adverse social impact, convenient for economic crimes, corruption, and affect social stability, to grow the exaggerated wind and corruption, corrupt party style and social atmosphere, increasing social instability factors.
For listed companies, the accounting information distortion will make accounting loss of its functions, thereby losing an important role in guiding the accounting of business management, management and scientific decision-making that will affect the business operators, enterprises would have healthy unclear unable to make a reasonable forecast of economic and financial crises or other major loss, information distortion existing and potential investors and creditors will lose confidence in the corporate finance. Enterprise in such cases, long-term effect is bound to weaken its competitiveness in the market, restricting its development and growth.
Existing and potential investors and creditors, the Public Company Accounting information distortion will give investors and creditors to bring information to investment risk and will mislead the public to make the wrong choice of investments in securities appear Investment Debu to return, and ultimately the loss of investment enthusiasm.

Second, the Public Company Accounting information distortion causes

Public Company Accounting information distortion First, unintentional causes, such as: accounting staff in the process of accounting information and its data, due to the professional level is not enough, and the lack of experience, leading to measurement errors, subjective misjudgment; intentional causes , for some intents and purposes, for example, through falsified fraud artificially and intentionally conceal income and spending, leading to a serious distortion of accounting information. Specific analysis from the following points:
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