Study On The Economic Consequence Of Accounting Standards

Economic consequence of accounting standards includes two sides: setting and enforcing. Studying accounting standards'economic consequence has important theoretic and practical meanings. Economic consequence view can be classified as "zero economic consequence", "positive economic consequence" and "negative economic consequence". On the one hand, we have to guarantee "zero economic consequence" when comes to accounting affirmation and measuring; on the other hand ,when turns to accounting statements, we must consider "positive economic consequence" fully and control "negative economic consequence" actively. Accounting standards'economic consequence decides the goal of setting standards is affirming property rights. The best value direction of setting standards is"zero economic consequence"at recognition and measurement aspects. The process of standards'setting is a game process, in which many stake holders participate. Enforcing of accounting standards realizes during the process of accounting policy choice. Letting management persons choose accounting policy flexibly can be good to adapt to environment changes and not perspective results of contracts, but also be bad to opportunism. One important reason of accounting standards'economic consequence is accounting rent-seeking, which exists not only at setting standards link, but also at enforcing segment. Moreover, accounting rent-seeking at setting link decides the extensiveness and deepness of enforcing segment. Recently, the analysis of accounting rent-seeking economic consequence during accounting policy choice process attaches great importance to"zero economic consequence". But, if it conforms to"efficient contracts view", it will be"positive economic consequence". Last but not least, the paper discusses the showings and reasons of economic consequence of new accounting standards at enforcing side. The studying result is that main reason is introducing fair value measurement comprehensively.