The Analysis And Evaluation Study On Profit Quality In The Environment Of New Accounting Standards

For announced financial information, the profit, as a financial indicator of business performance results, occupies an important position, it is the key indicator that investors make decisions based on, and it also determines the changing stock market. In recent years, capital market has developed rapidly, but the phenomenon of false accounting information emerged one after another. The global financial crisis which expanded rapidly from the second half of 2008 also proved this point in a bitter price. People have been unable to make right decisions under the pure accounting profit data. As a product of enterprise performance, the profit faces such questions as:what extent its pros and cons reach, whether it is true, whether it can sustain, and whether it can develop healthily. All of these questions are regarded as profit quality problems, and have become the focus concerned by current accounting theorists and practitioners. Analysis and evaluation of the profit quality has very important significance:it can guide investors to make rational investment decisions using financial information, can guide rational flows of capital and efficient allocation of resources, and it also can be beneficial to the stability of capital market and to enhancing the investors' confidence in the accounting profession. At the same time, it is an urgent need for the perfection of financial analysis and the further development of accounting theory. From the year 2007, the new corporate accounting standards was implemented in the listed companies, as the Standard-setting idea started changing to the asset-liability view, the definition and measurement of assets, the meaning and content of profit have taken place substantive changes, all these changes will also raise new issues to the analysis and evaluation of profit quality, so the research on profit quality is imperative.In this paper, after analyzing the domestic and overseas literature, combined with the characteristics of China's capital market, the author raises the meaning of profit quality, and analyzes the characteristics of profit quality. Then, from the perspective of macro-and micro-the author analyzes the factors that affect the quality of the profit, and then under the light of the new business accounting standards, analyzes the impact on assessment of profit quality, points out that the quality of profit should be give a new perspective analysis. Combining the characteristics of China's securities market, based on the financial statements, this paper designs indicators that can reflect the characteristics of the profit quality, and analyzes the quality of profit.The financial crisis has affected all industries, because of the industry difference, the impact degrees are different, for example, as one of the basic materials, steel industry has been affected relatively seriously, due to the recession of real estate, shipbuilding and other industries. In this environment, for different business objectives, what changes does the quality of the steel industry's profits have? In this paper, choosing steel industry listed companies in china stock market as samples, selecting annual financial statement data of the year 2008, applying designed profit evaluation index, using factor analysis methods, analysis on the profit quality is made.