Research On The Accounting Policy Choice Based On The Contract Theory

Accounting policy choice is an important subject in the accounting researches in western countries. In china, the accounting system, which focuses on Accounting Standards for Business Enterprises and Accounting Regulations for Business Enterprises, has offered business firms the power of choice and considerable room for choice, so it is necessary for firms to engage in the choice of accounting policies.This article takes modern enterprise contract theory to analysis the situation and existent problems of the accounting policy choice, and to make the contract partner's benefit maximization. The structure of this article is arranged as follows:At first, after drawing out the thesis and the research value, the article has defined the accounting policy and its related basic concepts, then it explained the contract nature of the enterprise and its relation with accounting. In the second part, we analyzes accounting policy choice's motive and the three contract hypothesizes about the accounting policy in west, which are Pay Contract Hypothesis, Debt Contract Hypothesis and Political Cost Hypothesis, then summarizes the influence which three contract hypothesizes produces in the firms'accounting policy choices. Through the analysis of twelve kinds of accounting methods that limited companies choose, for example, inventory issued measure, equipment depreciation, allowance for bad debts, this article tries to discover the current situation of accounting policy, meanwhile, it will put forward the improving suggestions aimed at the current situation.