Research On The Existence, Influence And Optimization Of Flexibility In Accounting Institutions

Institutions are both results of gambling equilibrium of participants and rules of gambling. It can definite the space of action under the given conditions and restrict the interrelations of people by offering a series of rules so as to reduce the uncertainty and the cost of transaction as well as keep save the property rights under the established institutions. Consequently, the history of human beings is just to hunt for better institutions because of the predominant significance of institutions.Because of complexity and uncertainty of transactions and bounded rationality of human beings, all institutions are only imperfect contracts. That is to say, rigidity and flexibility are nature of institutions inherently. The flexibility of institutions has the very important effect on the results of institutions and the flexibility is one of the hottest topics nowadays. Accounting is a rather important but low-cost credit mechanism under the market-economy whose effective function can reduce asymmetry of information and the cost of transactions, promote credits and cooperation and protect legal property rights of participants of transaction. In order to make sure that accounting plays the functions mentioned above effectively, there must be high-quality accounting institutions to regulate the function of the accounting mechanism. Just like any other institutions, because of effects of subjective and objective factors there must be flexibility in accounting institutions. The character and extent of the flexibility in accounting institutions will directly influence the accounting behavior, accounting information and the distribution of benefits of every subjective of property rights based on the accounting information and finally inevitably influence the whole market economy. The flexibility in accounting institutions has been the focus argued and concerned accordingly.It is important to study on the reason of existence, types, nature, effects and ways to perfection of flexibility in accounting institutions for improving the accounting institutions, exerting fully the function of accounting, guaranteeing the effective functioning of accounting mechanism, protecting their deserved property rights of every subjective of transaction, promoting fair competition and procure a better order of market economy.This dissertation consists of six parts considering the aim of the study.Part one is Introduction. This part will mainly introduce the background, significance, logical way and methods, innovations and imperfections of the dissertation.First of all, the author shows intuitionisticly the effects of flexibility in institutions by providing two representative cases in daily life. Secondly, the writer reviews the arguments on the flexibility in accounting institutions and the history on the regulation of flexibility in accounting institutions in US, China and IASB. Subsequently, the writer shows clearly the realistic significance of study on the flexibility in accounting institutions. Last, the writer establishes the contents and study methods and points out the innovations and imperfections in the dissertation. Part two is the theoretical bases of the study on the flexibility in accounting institutions. Study is usually on the base of some hypothesis and then makes clearly definition for the key concepts as well as takes some reasonable analyzing tools. This part mainly introduces the basic premise, theoretic bases and the key concepts of the study.The fundamental premise and academic base of this essay include the three basic hypotheses about human beings behavior in the neo-institutional economics, the theory on institutions, the theory on agent-trust problem, the theory on asymmetry information, the theory on property rights, the theory on transaction cost and accounting theory. In this part, the writer makes the definition for the basic concept the flexibility in the accounting institutions studied in the dissertation.Part three is the study on the existence of flexibility in accounting institutions. This part makes study on the reason of the existence, the types, the nature and the measure of range of flexibility in accounting institutions. Then the author makes a summary research on status of our country's corporation accounting institutions flexibility.The writer divides the accounting institutions flexibility into five styles according to the different representation forms, but they all have the same nature of property right, it is that the flexibility in accounting institutions is a property right area which endows the financial report suppliers, auditors, framers of accounting institutions, users of accounting information and even the judgers with certain rights. The owners of every property right are restricted reciprocally, and it is they that together influence the production and reporting of the accounting information.It is objective and subjective factors that are together be responsible for the existence of flexibility in the accounting institutions. The extent of flexibility in the accounting institutions can be showed by the amounts of the points of the flexibility in accounting institutions, and what's more, it can be manifested by its influence on contents and forms of the financial report.Part four is the study on the effects of flexibility in accounting institutions. This part systematically looks back to normative analysis on the effects of flexibility in accounting institutions and makes retrospect to the positive study on how it affects the suppliers of financial reports, auditors, obligees and other interrelated person with the financial reports. Based on the study mentioned above, this part makes a normative analysis on the effects resulted from the flexibility in accounting institutions from the perspectives of property and transaction cost accordingly. The status of the effects is mainly subject to the allocation of property rights, obligations and risk in the area of flexibility in accounting institutions. The flexibility in accounting institutions is the enabling factor of action of moral risk under the condition of trust- agent and the asymmetry information.Part five is the optimization study on the accounting institutions flexibility. This part makes studies on the connotation of optimization about the flexibility in accounting institutions and on the detailed optimization methods. The concepts and the significance of it are firstly dealt with and then the thread of flexibility optimization is put forward .The writer demonstrates each way to optimization of the flexibility in accounting institutions using the property right and transaction cost as tools. It is necessary to implement goal-oriented model to institute accounting institutions in order to achieve of the integral optimization of the accounting institutions function after analyzing the characteristics of the accounting institutions flexibility in the context of different accounting institutions model because the goal-oriented accounting institutions makes the reasonable allotment for the property right in the institutions flexibility space, for the obligation and risk and make property rights consistent with obligations and risks .Part six is the study on the optimization of the effects of flexibility in accounting institutions. This part makes an analysis on the implementary mechanism of flexibility in the accounting institutions and brings forward how to optimize the effects of the accounting institutions flexibility. The optimization of accounting institutions flexibility can only resolve the quality of accounting institutions, which is the problem in nature about the achievement to"there should be laws for observance". There are still some key problems that must be resolved which are:"laws must be observed","laws must be executed strictly"and"breaking laws must be punished". That is to say, our government must implement effectively the mechanism in order to exert fully the positive effects of the institutions flexibility and also constrain effectively its abuse of by opportunism. This part puts forward the detailed ways to the impacts of the optimizing the accounting institutions flexibility from the follow several aspects.The main innovations in the dissertation are as follows:Firstly, the dissertation systematically studies the reason for the existence, nature, effects and the optimization of flexibility in accounting institutions. The past studies on the accounting institutions flexibility have failed to form the systematical fruits and most of which made studies from certain aspect on it, and what's more, most of studies were limited in the arguments on the extents of the flexibility in accounting institutions. However, in my opinion the optimization of flexibility in nature is not only the problem about the extent but the key problems is the achievement of reasonable distribution of the property rights, obligations and risk under the flexibility space of accounting institutions. On contrary, my essay makes an integral study from all above-mentioned aspects.Secondly, the dissertation points out that the nature of flexibility in accounting institutions is property rights. Based on the view, thread of optimization of flexibility in accounting institutions is advanced considering the different property status in different kind of flexibilities.In order to set good institutional basis for the high-quality financial reports, it can be through the reasonable subdivision about the property right under the accounting institutions flexibility range so as to make the range become the range of the obligations rather than public domain or the private domain of the financial report suppliers, which can reduce the harms resulted from the opportunism conducts.Last but not least, the study on the impacts of flexibility in accounting institutions is made from the two aspects, the optimization flexibility in accounting institutions own and its implementary mechanism.As we know, the final effects of the institutions are just reflected by the result of its implement. And the results of the institutional implement will be impacted by the quality of the institutions own and the effectiveness of the implementary mechanism. The optimization of flexibility in accounting institutions realize the reasonable distribution of the property rights, obligations and risk, but the achievements of the idiographic property right benefits and the constraint of the obligations and risk will be realized by the effective implements outside the accounting institutions. The problem about the optimization of effects of flexibility in the accounting institutions will be integrally resolved through the allotment and the protection of the property rights.