A Magic Weapon For Improving The Quality Of Accounting Information

1. limitations of accounting standards and accounting systems.

Accounting standards and accounting systems are the basic norms of accounting, and they are the provisions on accounting principles, accounting methods and accounting information disclosure methods.

Accounting standards and accounting systems are the basic norms of accounting and reporting. Their inherent limitations are the institutional reasons leading to the distortion of accounting information: first, accounting estimates and professional judgments cause distortion of accounting information.

Accounting standards and accounting system are the bridge linking accounting theory with accounting practice.

There is a great deal of estimation and professional judgment in accounting itself. The closer accounting estimates and accounting judgments are, the more real accounting and accounting reports can reflect the true operating results and financial status of accounting entities.

The estimation and judgement in accounting make accounting information more or less exist that can not truly and accurately reflect the actual operation result and financial condition of accounting entity.

Therefore, the greater the number of accounting estimates and judgements, the greater the subjective components, the harder to ensure the accuracy of accounting information.

The two is the selectivity of accounting methods, which leads to distortion of accounting information.

A variety of accounting methods are stipulated in the guidelines and accounting systems.

Such as inventory valuation method, depreciation method of fixed assets and so on.

The different accounting methods reflect the financial status and the operating results of the accounting entity. The more options are available, the more inclined the accounting entity will choose the way to reflect their financial situation and business results. This leads to the loss of accounting information to a certain extent.

2. the main body of enterprise property rights

Factor。

The main body of enterprise property rights is composed of individuals related to the government, creditors, owners and so on. Different individuals have different economic purposes.

The government is most concerned about tax revenue; creditors are most concerned about whether their debts are recovered on time; the owners are concerned about whether assets can be maintained or increased; and whether the operators concerned about the increase in performance can bring more economic benefits to them.

Different behavioral objectives are driven by different interests, and conflicts of interest inevitably arise.

The direct management of an enterprise is directly responsible for the operation and operation of an enterprise. On the basis of its own interests, the operator will only provide the amount of information disclosing marginal revenue equal to marginal cost, that is, the amount of information disclosure satisfies the requirement of maximizing its own interests.

Because of the symmetry of the information department, the owners can not make a reliable judgement on the performance, capabilities and prospects of the enterprises, nor do they have a certain standard to choose more operators. Therefore, the owners may choose the managers according to their performance. This leads to the phenomenon of inferior accounting information expelling high-quality accounting information.

3. the internal quality factors of enterprises and units.

First, the unit.

The accounting legal system and the sense of accounting responsibility are poor.

The person in charge of a unit as the first person in charge of accounting work shall be responsible for the accounting work and the authenticity and integrity of the accounting information in the implementation of the accounting law, that is, the quality of accounting information.

Because accounting information is a comprehensive reflection of the financial status and operating results of a unit, it embodies the operation and management level of a unit. Therefore, the behavior of whitewashing accounting statements, preparing false financial reports, making accounts outside accounts, and setting up small Treasuries are mostly related to the instructions and instructions of the units responsible.

Two, accountants' professional ethics and professional skills are low.

Accountants, as providers of accounting information, are responsible for the quality of information provided by them.

The quality of accounting information is related to the professional quality and professional ethics of accountants.

The information provided by accountants should be accountable to the state, investors and creditors, and the reliability of information provided by the outside world must be strong.

However, because of the uneven quality of accountants, accounting and accounting supervision can not be carried out well, even some accountants' professional ethics are lost, and the concept of legal system is weak.

Three is the unit internal control system is not perfect.

Many units lack of basic accounting work, lack of internal constraints and supervision, have not established and improved the corresponding accounting control system, and the positions of Finance and audit are not separated, resulting in collusion between internal staff and embezzlement of state property.

Accounting books and "small Treasuries" have repeatedly been banned, there is no law, no serious investigation is illegal, and accounting supervision has been seriously weakened.