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Study on transparency of accounting information of listed companies in China

Author: LiuGuoHua LeiLei From: www.yourpaper.net Posted: 2010-03-19 20:25:36 Read:
[Abstract] transparency of accounting information of listed companies in China as research content, proceed from a perfect system of the relevant criteria, adjust the shareholding structure, and give full play to the authority of the enterprise responsibilities, improve the system of certified public accountants, the transparency of accounting information of listed companies to be fully reflected, in order to ensure that investors make the right economic decisions.
[Keywords] listed companies accounting information transparency

A definition and importance of the transparency of accounting information

1, the definition of the transparency of accounting information
The Basel Committee on Banking Supervision, pointed out in a research report released in September 1998, "Enhancing Bank Transparency: The transparency of accounting information is the public disclosure of reliable and timely information, its quality features include: comprehensive, relevant, timely, reliable, comparable and significant.
2, the importance of transparency of accounting information
For investors, the real, transparent information disclosure to ensure the information users make the right economic decisions, once the lack of transparency of accounting information, the investor's investment will lead to investment failure due to non-personal subjective factors. Therefore, it is very important to improve the transparency of accounting information of listed companies.

Second, the transparency of the status quo of China's accounting information and its lack of reasons

1, the transparency of the status quo of China's accounting information
(1) disclosure of accounting information is not sufficient. Listed Companies' Annual frequently lengthy statement, review and analysis of the operating results of particular concern to the investors, the net profit of the composition and the reason for the change, as well as the company's budget for the next year, most companies have ignored or hastily perfunctory few explain loss reasons when only a few words; surprisingly consistent when it comes to loss factors, basically the industry downturn, the objective factors affected by the new provision for the impact of the accounting system, and the company's own reasons, especially the management, marketing, etc. The problem understatement. Operating conditions of disclosure does not detail loss reasons disclosed not clear, inadequate disclosure of related party transactions resulted in the disclosure of accounting information is incomplete.
(2) disclosure of accounting information in a timely manner. Accounting information is a time-sensitive products over the validity of the information, and its value will be greatly reduced. Information disclosure of listed companies the lag, false and omissions commonplace, periodic reports in a timely manner, a year after the Feb. 28 Pre-losing announcement deadline past, there are still a few companies also gradually continued to release Pre-losing warning announcements. In recent years, with the strengthening of the securities regulators, listed companies rely on information disclosure time poor behavior to seek benefits under the strict control, but such phenomena is still no shortage of existence and the means to be more secretive.
(3) accounting information disclosure untrue. False accounting information disclosure has become the most serious in the information disclosure of listed companies in China, endangering the biggest problem in the listed companies listed, refinancing and annual reports and other major events disclosed work especially. Such the change profitable notice content arbitrarily, some companies are expected to basically be able to achieve profitability, and the result was unexpectedly released Pre-losing announcement. There to hype the stock in order to cater to the dealer, at different stages of deliberately to publish misleading investors accounting information, intentionally fabricating the large sales contract, casual disclosure of uncertain expected return, do not implement the disclosure of the use of funds raised are clear, on the significant financial information is not timely disclosure or non-disclosure. Profit before listing packaging, some listed companies listed on the huge loss of the year, the return on net assets of some listed companies artificially controlled allotment requirements in order to achieve the 10% or 6%.
2, the reasons for the lack of transparency of accounting information in China
(1) The authority of the enterprise hardly be able to perform their duties. The shareholders' meeting, board of directors, board of supervisors did not play its due role in checks and balances. The shareholders 'meeting is the company's rights institutions, the merger, division, annual accounts and other major issues should be decided by the shareholders' meeting. The listed company's shareholders 'meeting, however, are often subject to excessive manipulation of the major shareholders, minority shareholders and even corporate shareholders often do not participate in the general meeting, the formation of large shareholders, "a one-man phenomenon, leading to the shareholders' meeting is difficult to play a monitoring role, a mere formality. And chairman of some companies often sent down the party and government cadres in government agencies, production and management do not know, do not really perform their duties, and some even take a virtual level corporate salary. There are many, chairman and general manager of the enterprise by the same person as the other members of the board of directors also mostly internal management, supervision and restraint function lost manager. Oversight bodies as the Board of Supervisors, whose members are often internal staff and the supervisor is often superior-subordinate relationship, in fact, become a deliberative bodies controlled by the Board of Directors, and symbolic duties. In the Board of Directors and the Supervisory Board, the accounting system is basically in the hands of the manager's managers likely by virtue of the "superior" in the hands of the power to control the company's accounting system, the accounting statements whitewash out opaque accounting information to erosion The legitimate rights and interests of investors outside the company, so as to maximize their own interests.
(2) guidelines imperfect system. There is a certain time lag between the system of accounting standards and accounting practices. Practice often due to the behavior of an endless stream of accounting practices and economic innovation, corporate accounting treatment "no legal basis".
The unity of the system of accounting standards, while also taking into account a certain degree of flexibility. Processing as an accounting matters there are a variety of alternative accounting methods. The coexistence of a variety of accounting treatment for corporate accounting manipulation to the door, resulting in some listed companies for allotment "deficits," Paul shell, cash management bonuses, the balance of the actual profit and forecast profit, to participate in the secondary market speculation such purposes, the use of "space" system gives guidelines for accounting manipulation, thus ignoring the fairness of the accounting information authenticity.
(3) The agency issued false financial reports. Generally by the listed company's operating management commissioned the audit agency audit by determining related audit fees and other matters, which fundamentally undermine the supervision and restriction relationship between the listed company audit institutions, which audit lose its basic elements - independence; on the part of the Certified Public Accountants professional level is not high, lower professional ethics, accounting information untrue they are inevitable. Secondly, because of the accounting firms have access to the best interests of the partnership, but without incurring the risk of dereliction of duty may go bankrupt once.

Third, the main countermeasures to improve the transparency of accounting information in China

1, improve the internal governance structure, to play the role of internal restraint mechanism
(1) learn from the research relevant departments in the United States, to establish a standard system of internal control. In 1973, the U.S. Congress passed the "anti-foreign bribery laws, mandatory for the Company's internal control U.S. Auditing Standards Board of the internal control objectives must be met, otherwise it will be subject to severe punishment. Learn from the practice of the United States, we should strictly enforce the Securities and Futures Commission and the Economic and Trade Commission has issued "Corporate Governance Guidelines" and published by the Ministry of the Internal Accounting Control Standards - Basic Standards, constantly forced efforts to increase the implementation of the internal control, to improve The transparency of accounting information in China to provide good governance environment.
(2) the gradual adjustment of the equity structure of listed companies, regulate the operation of the shareholders' meeting. Guide the largest shareholder of the listed company to reduce its stake, to create the conditions to encourage more non-state-owned corporate capital, foreign capital and private capital to invest in state-owned enterprises, reduce the corporate capital stake in China, and to promote the company diversified equity to reduction of state-owned shares of listed companies, to solve the problem of the dominance of the. While actively developing institutional investors, allow and guide funds, insurance, pensions institutional ownership, both promoted simultaneously. Encourage fragmented shareholder structure, and actively promote the tradable state-owned shares, legal person shares, and to promote the formation of the market for corporate control. Of minority shareholders are encouraged to participate in the general meeting, boosting the needs of small and medium-sized shareholders accounting information, which can put pressure on the disclosure of accounting information of listed companies, to promote the implementation of accounting transparency.
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