The Research Of Regulatory Accounting Theory

In recent years, with the gradual intensification of the market reforms, China's basic natural monopoly industries, such as water and electricity, gas, railway, aviation, telecommunications, broke away from the traditional business model which merged government administration with enterprise management into one, and moved into marketization. Therefore, the government regulation actions of these monopoly industries have received more and more public attentions. To overcome the information asymmetry problem and to achieve the effective regulation, the emergence of the regulatory accounting is an inevitable trend.Regulatory accounting is a kind of special accounting, which derived from financial accounting and management accounting. It was the accounting rules on asset recognition, accounting practice, cost allocation and accounting statement of regulated enterprise, which is formulated by the regulators to meet their management needs. Western developed countries have already started the research of regulatory accounting and have established a relatively complete system of regulatory accounting on the basis of formal legislation. While in China, the study of regulatory accounting has just started, the theoretical framework of this subject has not yet been established, and the relevant research findings are very few.This paper is a preliminary exploratory study of the establishment of China's regulatory accounting theory system on the basis of borrowing western countries' regulatory accounting system. In this paper, the author analyses and discusses the objectives, assumptions, information quality characteristics, accounting elements, accounting reports and its disclosure of regulatory accounting, and probes the cost accounting system of regulatory accounting on the basis of telecom regulation. Ultimately, a relatively complete theoretical framework of regulatory accounting, which provides a theoretical guidance for the further research of regulatory accounting rules in the future, is built here.