The Influence Of New Accounting Standards' Realization To Central Enterprises Performance Evaluation Financial Index

It is the performance evaluation that is the core of all the economic system. The performance evaluation is paid attention to not only in the national but also in the worldwide,not only from the theory but also from the practice. China's present implementation of the Performance Evaluation System is "Comprehensive Performance Evaluation of central enterprises the implementation details ". It is owned byThe State-owned Assets Supervision and Administration Commission of the State Council in 2006 for state-owned enterprises, especially the central enterprises. Treasury department issued new China Accounting Standards(CAS)in February 2006. And it has been executed in listed companies since January 1,2007. The new CAS for Inventory management, realised provisionand reversal for Assets Devaluation, confirmation of Debt Restructuring Income have made a significant adjustment.It also introduced the Asset-liability view for the first time,and this idea is consistent with international accounting standards. These changes have had the major impact on Performance Evaluation Financial Index System. (These changes haven't have a significant impact on the non-financial Index) . It is a practical significance that study on the influence of New Accounting Standards'realization to Central Enterprises performance evaluation financial index.Western developed countries study Performance evaluation index system earlier than our country. Research results of this study are also very fruitful. Due to different characteristics of production and operations, the difference of economic environment and management request, performance evaluation system changes each time. The development process of performance evaluation system follows the overall tendency of internal and external operation environment of enterprise Asset-liability view is established early in western developed countries.Few scholars study the influence of Accounting Standards to performance evaluation system.Our country start to study of performance evaluation system after China establishes. The development of performance evaluation system in our country is relatively slow. Performance evaluation system in our country always take accountant the profit as the center, and pay more attention to the financial index. With the promulgation of the new CAS,there are much difference between performance evaluation financial index system and the concept of the new CAS.Compared with the old CAS, the core concepts, measurement properties of concepts, statements report, a list of new CAS change a lot. These changes influence the development direction of present performance evaluation financial index system.Firstly, The new criterion in the confirmation, the measurement and the financial reporting structure of the new CAS have established ecore status of the Balance Sheet. The performance evaluation financial index system will pay great attention the change of the net assets, assets, liabilities.The system also concerns development ability of enterprise, in order to avoid the short-term management behavior.Secondly, the new CAS has introduced fair value measurement model. It brings a new trend that the importance of the cash flow analysis indicators increased. Finally, the new CAS changes owner equity change statement into the core statements. The performance evaluation financial index system should take full advantage of information on owner equity change statement.The changes of the new CAS may change the structure of the financial statements and data greatly. The change of accounting process will cause that the book balance of assets and debt, operating results in the future would change. These changes influence on the performance evaluation financial index. Therefore, the paper has analyzed the influence of the new CAS'Realization to financial reporting principal item.This contains the changes of asset, liabilities, the ownership and the gross profit. This paper based on the annual of 2006&2007 data basis of manufacturing industry (mechanical device measuring appliance industry, petroleum chemical industry) in Central Enterprises. According to the profitability, asset quality, debt risks and management growth,the paper analyzed the influence of CAS'realization to performance evaluation financial index. In profitability, return on net assets has increased, and return on total assets has fluctuated. In asset quality, total assets turnover and accounts receivable turnover are both have increased. In debt risks, asset-liability ratiohas not had the very tremendous influence, and tinterest rate safeguard multiplier has fluctuated. In management growth, sales growth rate and hedging and proliferating ratios are both have increased. Certainly, there are many factors affect performance evaluation financial index. Therefore, the financial index changes in 2007 affected by the new CAS is not significant.Through the analysis of the influence on system idea and core financial index of CAS to performance evaluation financial index system. we have a few suggestions. Firstly, The restructuring system would retain basic characteristic of present performance evaluation financial index system.Secondly, The restructuring system would take advantage of the information from the Balance Sheet, the income statement, the cash flow statement. Thirdly, the restructuring system would widely use the cash flow index, and that will enhance the reliability of the central enterprises performance evaluation financial index System.