Implementation Of New Accounting Standards, Analysis Of The Results Of The Impact Statements Of Listed Companies

Upon the request of Ministry of Finance, the new Accounting Standards for Business Enterprises came into effect in public listed companies from January 1, 2007. The adoption of new standards brings about a series of changes in accounting attributes and methods, which will not affect the real earnings of listed companies but will undoubtedly have broad and profound effects on their income statement profit. From macro perspectives and in light of China's current economic situation and the new accounting standards, the thesis first discusses the purpose of introducing the new system. In the meanwhile, by drawing a comparison between the old and new accounting standards systems, the thesis also penetrates into the innovation of the new system in accounting conception. Then, from micro perspectives, the thesis explores all the 38 standards of the new accounting standards system and focuses on the insightful analysis of nine standards including No.1– inventory, which have relatively great impact on income statement profit. In regard to the analysis of each standard, the thesis starts from the background and reason behind its creation and sums up its changes over the old standard. Through the analysis of the difference between the old and new accounting systems, the thesis examines how the adoption of new accounting standards will affect the income statement profit of listed companies. Finally, from the perspectives of real practice, the thesis takes a look at difficulties encountered in the implementation of the new accounting standards, studies the room for profit manipulation, and concludes that the smooth run of the new accounting system needs to go hand in hand with the cooperation of other sectors and regulations.