The Research Of The Listed Companies' Extraordinary Item Disclosure

Extraordinary item (EI) is the important information disclosure index. While the characteristics of disposable and abiogeny of extraordinary items make it hard for its investors to forecast its perspective. Now, profit index is one of the key indexes which are used to measure the level of enterprises' profitability and management. So, it is also very important to investors, creditors and managers. However, in order to reflect the enterprises'real sustainable management ability, it has to eliminate the influence of the EI. If the listed companies manipulate profit, it will tremendously arouse the misreading and misunderstanding the accounting statement which will become one of the barriers on the stock market's way to the health development. Since 1999, though the ministry of finance and CSRC have issued some standards on the extraordinary items, yet the situation that lack of standardization on the disclosure of EI, the listed companies utilize EI to make up the deficits and get surpluses and Special Treated (ST) Companies utilize EI to cancel the special treatment have not become better.Thus, to understand accurately the EI is very important and meaningful to exactly understand and estimate the sustained profitability then make a scientifically reasonable investment decision. Taking EI as a supervisory indicator is playing a significant role in help to correctly standardize the disclosure of EI, improve the quality of information disclosure as well as protect the investors' legitimate rights and interests.This thesis is based on the related concept of EI, using the comparative analysis to show the definition of EI by both home and aboard. Through combining the empirical research with the normative research and using the descriptive statistics, chart analysis, case analysis and the like to stat and analysis the 2007-2010 standard sampled data of Shang Hai A-share. Research shows that there are lots of problems of listed companies' disclosure of EI, such as different disclosure standards, not consistent disclosure format and content as well as a fuzzy definition of EI and so on. These problems have a serious impact on the quality of f accounting information, reduce the reliable and relevant of accounting information. In order to solve these problems, this thesis makes the following suggestions, such as strengthening the regulatory and perfecting relevant laws and regulations.Overall, it aims at discovering the problem existing in the EI disclosure by the listed companies and in the hope that it can help investors to realize the listed companies' financial performance more clear, at the same time offer useful advises to the market regulators and law makers to promote the system standard of El.