A Brief Study In The Coordination And Separation Of Accounting Policies And Financial Regulations

After the outbreak of the financial crisis, the growth of global economy became slowdown. Even certain individual economies fall into a severe recession. The fundamental factor of such a crisis is the imbalance of economic structure, and the most direct causes are that the absence of official supervision and the over-controlled innovation of financial instruments, especially the wide application of securitization-based credit. Furthermore, in the course of financial crisis, people have realized the importance of highly-quality standards of accounting in terms of improvement of transparency of financial markets and effectiveness of financial regulation. Particularly, during the process of this crisis, the independence of the setting bodies of account standards has become a public topic once more, which includes the separation between regulatory requirements and financial accounting standards. In brief, it has become a challengeable question about the relationship among the motivation from authorities, the accounting standards and the coordinate of them.Holding the perspective of the theory of financial regulation and accounting policies, this article try to state the development process, describe the contra-active relations between accounting policies and financial regulatory policies, and discusses China's financial regulatory policy and the need for separation of accounting policies and key performance, to further explore this "Separation" of the accounting policies and financial supervisory policy. On this basis, this paper' put forward reasonable proposals to deal with "separation " of the impact of accounting policy makers and to strengthen financial regulators communication and coordination, improve the applicability of accounting policies to improve the effectiveness of financial supervision, in order to maintain financial market stability and protect the interests of investors.This article is divided into six chapters. The first chapter is an introduction, which provides the background of this research, discuss the importance and necessity of this topic.The second chapter is literature review, which lists the results of previous literatures relevant on this topic and provides a new perspective for following studies in this topic.Chapter 3 is the part of theoretical analysis. First it reviews the source and development of Financial Regulation and Development Theory, the goal setting of regulatory requirements. In the following it states the concept of accounting policy, defines the objective of accounting policies and review the development of the studies in the concept of fair value in accounting policiesChapter 4 describes the accounting policies and financial regulatory policies of the inevitability of separation. In this aspect, the paper analyzes the financial industry, the relevant accounting rules, financial regulatory requirements, regulatory capital and accounting separation, and the separation of the capital. Then it reveals the issues of difference and conflicts among regulatory requirements and development and implementation of accounting policies, which exist in the process of establishment and practices. After the separation of the regulatory requirements are summarized and the differences in accounting policies.Chapter 5, after the analyzing of financial regulatory policies and accounting policies based on the separation performance in Chapter 3, states the impact of separation in both sides, and the possible effects on the financial supervision in coming future.Chapter 6, based on the combination of the existing financial regulatory policies and the reality of accounting policies, makes suggests for accounting policy makers and financial regulators respectively, which seeks to get an improvement of financial regulatory policies and accounting policies to achieve regulatory goals and objectives in financial supervisions.This article attempt to make a contribute to clear the financial sectors and financial regulatory policies which is related to the separation of accounting policies, in order to explain the differences among accounting capital and regulatory capital in the banking, securities and insurance industries, make an analysis about the influences after the separation of accounting policy changes, especially the possible results of the use of fair value measurement on the financial regulation, and provide various suggestions which may be reasonable which focus on the potential influences.There might be a series of new challenges due to the variation of economic status hence it is a practical issues for financial regulations to a large extent In the aspect of financial regulatory policy, the policy of separation and separation, due to the limitation of information sources and knowledge to understand structural limitations, this analysis may be not comprehensive enough. And. there is still weakness in the recommendations above, which may be waiting for the strengthening in the knowledge of financial theory and enhancement of the understanding of the relevant practice in the further research.