A Empirical Research On Mandatory Changes In Accounting Policies

Mandatory change in accounting policy play a pivotal role in the empirical research. Mandatory Accounting Changes in accounting policy at home and abroad for the mandatory literature has a large number of instructions. However, specifically in the mandatory accounting policy changes - a long-term equity investment accounting method to this specific policy change relatively little empirical research.For these reasons, the papers in the drawing at home and abroad based on the thesis of a mandatory change in accounting policy - a long-term equity investment accounting method changes the subject of theoretical analysis and empirical research. An Empirical Analysis of the mandatory thesis hopes to change in accounting policy - a long-term equity investment accounting methods affect the amount of change, resulting in different economic consequences, Enabling the existing listed companies, the long-term equity investments more effectively reflect its real economic substance, while the amount of different effects caused by the net assets and net profit of the different economic consequences, a true reflection of a listed company's shareholders equity and net profit, making investors to make the right investment decisions. At the same time, through the mandatory change in accounting policy empirical research to reveal the amount of corporate influence, as well as investors, managers, and other various interests of the principal business attitudes. Regulatory agencies for the development of science and accounting policies, strengthen the securities supervision and management, as well as listed companies on the company's financial situation a complete disclosure of accounting information system provides the basis for the promotion of a listed company as the research object of in-depth study of accounting policy issues and to provide useful reference and inspiration.Papers by the new guidelines implemented in 2007, using 2007 annual report to provide real data on the long-term equity investments in China to change accounting methods to conduct empirical research. Long-term equity investments accounting method change on net assets and future net profits in subsequent periods the impact, indicating the mandatory due to unforeseen changes in accounting policies, the economic consequences of significance. In particular, the implementation of accounting standards in the previous year, by early 2006, the end of the impact on net assets, differences and the end of 2006 the net assets and net profit on the difference between Using descriptive statistics and Correlation analysis and regression analysis derived using retrospective adjustment method to adjust the amount of the two cases is not significant, that failed the test. Better able to reflect the mandatory accounting policy changes brought about tremendous impact. Reflected not only in the year, but also dating back to the previous years.