| The quality of earnings is an important basis for decision making. Investors expect financial reporting to provide high-quality, decision-useful information, and the quality of earnings information depends largely on the level of quality of accounting standards. With the integration of world economy and China's capital market maturity, in order to improve the international comparability of accounting information and understandability, the Ministry of Finance issued The new accounting standard system on February 15,2006, which includes, a basic accounting principles and 38 specific accounting principles. It began implementation since 1 January 2007. The production of new accounting standards and implementation, marks the development of China's market economy which is adapt to the requirements of International Financial Reporting Standards, the full convergence of corporate accounting standards system has been formally established, so that the quality of accounting standards has been substantially enhanced. New standards on many aspects of the old criteria, among which the "New Accounting Standards No.12-Debt Restructuring" is a principle of change,and it has become research focus.Compared with the old criteria, the new guidelines on debt restructuring has a significant impact on changes in income,there are mainly two points, one is the introduction of fair value measurement attributes, the second is that the debt restructuring profit or loss is included in the capital reserve. The debt restructuring income is included in the income statement, which will have a significant impact on current profits. For this change, what does the capital market response? Whether the new guidelines for debt restructuring will provide more useful accounting information? No doubt these issues must be answered through empirical research.The article describes the history of the evolution of the debt restructuring process and analyzes the old and new guidelines for debt restructuring differences, based on the criteria described, It explains the theory of value relevance in detail, raises the hypothesis, and tested the model assumptions through empirical. The results show that:(1) Although the debt restructuring is a typical non-recurring gains and losses, but debt restructuring still has value relevance of information, in the capital market; (2) China's capital markets could distinguish operating profit and debt restructuring gains, and could give different valuation according to their importance; (3) debt restructuring to change into the capital reserve through profit or loss, increases the value of debt restructuring, that the reorganization of profit or loss income is more relative to income into capital reserves with the reorganization of the information gain; (4) Gain on debt restructuring has the value of the correlation, but is not timely, and stock price changes during the year is not relevant. Finally, the article suggested:first, to further improve the debt restructuring of specific accounting standards; second, establish and implement a favorable environment for fair value; Third, to market regulators, it should be actively to make market-oriented regulatory system, improving the regulatory standards and market efficiency; Fourth, improve the corporate governance structure; Fifth, actively cultivate and strictly regulate the audit market; sixth, to improve the overall quality of accounting personnel; seventh, improve investor knowledge and awareness of the law.One innovation of the article is selecting the closer relationship with the company, the more obvious changes in debt restructuring guidelines as a breakthrough,in the new context of the implementation of accounting standards, from one side to test the effect of the new implementation of the guidelines; second is to use empirical methods to study debt restructuring guidelines, to find the capital market response to debt restructuring earnings information from the point of view of value relevance. |
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