The Study On Accounting Problems Of Related Transaction In China

Related transaction (RT) is one of the main factors of many financial scandals in recent years, because of which some companies bankrupted. Related transaction (RT) results in the disorder of market and serious lose of investors and stockholders. Even financial organizations like banks have been cheated. The harmfulness of RT is so great that it's valuable for us to make a deeper research on it.From the aspect of accounting disclosure and accounting transactions, the present thesis is going to make a research on the accounting problems of RT and its resolution based upon "Accounting Standards of Business: the Information Announcement of Related Party and Related Transaction" and "Temporary Rules for Accounting Transactions of Selling Assets to Related Party" published by Ministry of Finance. Meanwhile, RT has been often utilized by foreign companies in China, of which the harm has not drawn enough attention from the relevant departments.For the purpose of solving the above-mentioned problems, the thesis will make a special discussion on RT. First of all, the author classifies RT to two categories-the recessive RT and the dominant RT. Such classification not only enlarges the extension of RT and replenishes the accounting standards, but also does good to the better understanding and administration of RT. Secondly, as to the accounting disclosure, in the light of the practical situation of our country, the thesis makes some improvement on Chinese accounting standards by referring to the improved IAS and accounting standards of other countries. Thirdly, as to the accounting transactions, the thesis makes a calculation of average return ratios of different industries in order to limit the trade price of RT. As the situations of RT usage are different in various industries, different limits should be stipulated. Fourthly, the thesis brings a proposal that it should collect adjustive income tax to the illegal RT. Finally, the thesis also gives the resolution to two forms of the recessive RT: one is the account receivable and other account receivable, and the other is the guarantee. It should be mentioned that taking punishing taxation to be the method of solving RT problems is one of the new ideas.In the thesis, methods of summarization & classification, comparative analysisand Illustration are widely used. In some parts these methods are used comprehensively.Li Gan(accounting)Directed by Associate professor Tian jianfang...