The Influence Of Securities Market Development On Accounting

With the development of the securities market, many new accounting problems have been brought to the listed companies.

The settlement of these problems has promoted the accounting reform in China, promoted the development of accounting practice in China, and made people's accounting concepts updated.

The development of the securities market has promoted the establishment of a new accounting system and financial system in China, as well as the promulgation of the accounting standards for enterprises and specific accounting standards.

In July 1992, in order to standardize the accounting of stock companies in China, the Ministry of Finance issued the "accounting system for pilot enterprises of joint-stock system".

This accounting system emphasizes the connection with international accounting practices, and also implies new accounting ideas, laying the foundation for China's accounting reform.

Influenced by this system, in 1992, China promulgated new accounting system, financial system and accounting standards for enterprises. The accounting methods and procedures adopted by the industry accounting system have been unified and basically conform to international accounting practices.

In view of the irregular behavior in the accounting treatment of listed companies, investors in the stock market urgently demanded the relevant accounting treatment of listed companies be standardized. In May 1997, the first concrete criterion of China, the disclosure of related party relations and pactions, was promulgated and implemented. In 1998, 7 specific criteria were promulgated, which played an important role in the accounting standards of listed companies.

Two, the impact of the development of the securities market on China's accounting theory.

The development of the securities market has promoted the change of accounting environment in China (1).

Accounting is always in a certain economic environment. It is inevitably influenced and restricted by its social, political, economic and cultural environment.

Our country originally adopted the planned economy system, accounting only serves the government and the higher authorities, and the government takes full responsibility for the enterprises.

With the establishment of a market economic system, it is emphasized that enterprises are responsible for their own assets, value preservation and value added.

The government no longer interferes with the production and operation activities of enterprises.

The accounting environment of Chinese enterprises has changed qualitatively.

(2) the development of the stock market has changed the accounting objective of listed companies.

Before accounting reform, the goal of enterprise accounting in China is mainly to serve the government and the competent departments at higher levels.

After the establishment of the securities market, investors, creditors and related parties require the listed companies to provide financial information for the enterprises.

The pformation of this accounting objective laid the foundation for accounting reform, provided support for China's shareholding system reform and the establishment of a modern enterprise system, and also made important contributions to the development of China's securities market.

The influence of the development of stock market on Accounting Hypothesis Theory (3).

With the development of shareholding system, the separation of ownership and management right requires accurate and complete accounting reports.

The accounting standards for enterprises stipulate that "accounting should take the various economic activities of enterprises as the object, record and reflect the various production and business activities of the enterprise itself".

This provision clears up the concept of "accounting entity".

Compared with the traditional owner system and partnership system, the company emphasizes the accounting services for recording, measuring and reporting the economic activities of enterprises, rather than serving single shareholders.

The influence of the 4 principles on accounting principles.

For example, traditional enterprise accounting adopts the principle of historical cost accounting, although it has many advantages, but an asset has only one valuation basis, which can not adapt to the development of the securities market.

If the assets reorganization of a joint-stock enterprise is inevitable, the assets replacement between enterprises will inevitably occur. The assets that are replaced are usually based on the fair price, and the short-term securities investment of enterprises should be reflected by the current value.

This has challenged the traditional single historical cost principle and replaced it with a variety of valuation bases.

Three, the development of the securities market has promoted the improvement of the enterprise financial reporting system.

(1) the cost report is changed from external report to internal report.

Listed companies should provide financial information to investors, creditors and related parties on a regular basis. The cost is often related to the pricing of products and business secrets of enterprises. Once released, it will have a huge impact on the production and operation of listed companies. Therefore, the cost statements will be pformed into internal reports by external reports of enterprises (to higher authorities).

(2) the theoretical basis of financial statements has changed.

Before the shareholding system reform, enterprises were popular with the capital balance table based on the equation of "capital utilization = capital source", which could not reflect the property rights relationship of joint stock enterprises.

The balance sheet of "assets = Liabilities + owners' equity" reflects the property rights relationship between assets and liabilities and owners' equity.

(3) the object and scope of financial reporting have been expanded.

In the securities market, the object of the financial report mainly includes investors, potential investors, creditors, tax departments, banks, securities management departments and other information users, which is obviously larger than the use of non-listed company financial reports.

With the development of the securities market, investors need to know more financial information so that they can make the right decisions.

Therefore, investors not only require enterprises to report information, but also require listed companies to give detailed descriptions of certain information in the report forms, not only to understand the company's past financial and business results, but also to understand the future development trend of enterprises. In addition, the acquisition, merger and holding of listed companies often occur, and the preparation of consolidated statements is also an inevitable objective requirement.

Obviously, the scope of financial reporting has also been expanded.

Four, the impact of the development of the securities market on China's accounting practice.

The development of securities market has raised many new problems for enterprise accounting practice: for instance, asset appraisal problems encountered in the process of shareholding reform and listing have promoted the development of asset appraisal practice; holding merger of listed companies has promoted the development of consolidated accounting practice; enterprises' external investment has made investment accounting practice develop.

Five, the development of the securities market has promoted the development of independent audit of CPA.

The separation between the ownership and management of modern enterprises and the owners are not directly engaged in production and business activities. Creditors and other interested parties need to understand the financial position and operating results of enterprises. They require the third party independent from the company to verify the authenticity and fairness of financial information and to produce audit reports.

China's securities regulations stipulate that all annual reports of listed companies must be audited by qualified certified public accountants.

The development of the securities market has promoted the development of the CPA career.