Development Trend Of International Accounting

(1) limiting the adjustment of income to people's earnings, the traditional accounting theory holds that the income smoothing should be allowed, that is, amortization of expenses. When the business is in good condition, more amortization, less good time and less amortization will make the income more balanced and the overall risk of the enterprise smaller. The current accounting theory holds that the method of income leveling and the artificially adjusted factors are too subjective and should be limited.

The accounting practice circles believe that the function of accounting itself is to reflect.

The use of information and information should be separated.

Accounting should embody its independence rather than serve specific policy needs.

Therefore, the amortization of expenses should be carried out as far as possible, so as to reduce manual manipulation, restrict human adjustment, and improve the objectivity and credibility of accounting information.

(two) increase the current cost (market price) accounting information. In the current accounting standards, historical costs dominate.

However, accounting is to provide information services for investors.

In the case of large price changes, the principle of historical cost can not meet this requirement, and the current cost should be provided.

All investment pactions can be divided into three categories: buying, selling or holding.

Obviously, buyers are concerned about how much money I will pay for it today. Sellers are concerned about how much money they can realize today, and the owners are concerned about how much money they can recover in the future.

These are current or future values, and historical cost is only a reference for them.

The accounting measurement model of the company can be determined by the combination of 5 measurement attributes and two measurement scales: measurement attribute 1. historical cost 2. current (reset) cost 3. current market price 4., net value 5., future cash flow discount value measurement scale 1., nominal currency unit 2., fixed currency unit will combine above "attributes" and "scale", and there can be 10 models reflecting enterprise assets and liabilities.

In fact, all kinds of models are used in real life.

For example, fixed assets valuation and inventory surplus should be calculated by replacement cost method; inventory and short-term investment should be priced at lower cost and market price; accounts receivable account for net value can be realized.

It should be said that the historical cost law is still the accounting standard used by most countries today, but it is losing its dominant position gradually.

Many people believe that the historical cost of twenty-first Century will gradually withdraw from the stage of history.

In order to meet the needs of many aspects, as a pition, at present, the historical cost can be used to reflect as much as possible the accounting information of current cost (market price) in the form of multi columns, schedules and annotations.

Changes in profit and loss of foreign exchange (unrealized) and so on.

The international accounting standards will require that the comprehensive income statement be disclosed as fourth statements.

The development trend of international accounting standards is three. The globalization of securities market, the internationalization of investment, especially the development of multinational corporations require accounting information to be comparable and achieve global reunification.

There are two ways of thinking: first, the unified accounting standards set up by the international accounting standards board (IASC).

Most people believe that this is a long-term goal and is not yet possible.

The two is coordination.

That is to say, the accounting standards of the country (region) should be coordinated with international accounting standards as far as possible, so as to reduce differences or disclose differences at the same time.

The train of thought is: constantly improving international accounting standards (IASs).

It is essential to improve the project and enhance the comparability. For example, two basic methods should be adopted for basic paction. Only one alternative method is allowed for other pactions, and the difference between different methods is required to disclose its information.

CORE STANDARDS.

The core criteria are formulated by the international accounting standards board (IASB), which is likely to be implemented around the world when the IOSCO is confirmed.

We should gradually implement unified international accounting standards.

The expansion of information disclosure (four) provides information on the existing information system. The three accounting reports disclosed by enterprises are reflected in the previous year.

When a report comes out, it often loses its prescription.

One way to make up for it is not only to disclose annual reports, but also to disclose quarterly reports.

The two is to increase the amount of information disclosed.

Information should be both financial and non-financial (such as environmental responsibility, employee welfare, etc.).

The report reflects historical data, and the information available to investors can be reflected by annotations, schedules and so on.

In foreign countries, although there are only three official statements, there may be forty or fifty pages for notes and schedules for investors.

Such information includes not only the financial accounting information traditionally believed to be disclosed, but also the internal information that some previously considered to be the internal control of the enterprise management, including the analysis data of major business decisions.

In short, we need to improve the pparency of business operations and provide investors with the most adequate information available to enterprises.