Development And Applicable Study Of The Asset-liability View And The Revenue-expense View

In 2006, China introduced a new "Enterprise Accounting Standards", from the new accounting standards system specification, we can easily find that the biggest difference between it and the old standards is that the widespread use of asset-ability view. Traditionally, the concept of accounting standard-setting tends to revenue-expense view. In the 20th century occurred in 70 worldwide inflation since the Great Depression, people gradually realized the shortcomings of revenue and expense outlook. Therefore, the Financial Accounting Standards Board (FASB) in the process of revision of its guidelines and the International Accounting Standards Board (IASB) to develop the new guidelines in the process, by the revenue and expense outlook shifted the balance.In the 1970s, the United States experienced a rare, spread to the world-wide inflation. Through this economic crisis growing recognition that makes use of historical cost accounting information between all periods are not comparable, not a real and effective financial statements reflect the financial position and operating results, and therefore the economy of financial information users had a great influence on decision-making. And, with the level of science and technology development, knowledge economy era, the intangible assets in the proportion of enterprises has greatly improved not only the use of historical cost have been able to meet people's needs of the validity of corporate financial information. On the other hand, derivative financial instruments, shares of employee compensation payments, the emergence of new things, and the use of historical cost measurement of assets of enterprises can no longer reflect the true financial information company. Thus, people began to pay more attention to asset quality and asset value of their own. In this context, FASB released in 1973 Notice of Financial Accounting Concepts No.3 (SFAC3) "the various elements of corporate financial statements", the first time to define the concept of using the profit and loss balance sheet accounting elements class, marking the assets and liabilities theoretical concept of a new round of accounting standard-setting theoretical foundation. The early 21st century, Enron, WorldCom financial fraud exposure, the study can be found when the means of fraud, the use of "special purpose entities" over-estimated profit is the main reason. The focus on profits, income to the profit and loss expenses for the concept of center of gravity is the theory of focus. Therefore, from a normative point of view, revenue and expense view is caused by Enron; WorldCom financial fraud is the culprit. SEC subsequent to the FASB's reform report also clearly balance concept is the most appropriate accounting standard-setting basis.China's accounting standard-setting concept has also undergone a series of changes, from a planned economy period simple asset-ability view, to a planned economy to market economy period, the revenue-expense view, to the 2006 edition of "Accounting Standards" after the introduction of a more complete asset-liability view, the concept of China's accounting standard-setting also experienced:"simple assets-liability view; revenue-expense view; assets-liability view," the negative and deny evolution. And this change and with a specific period of China's economic development is closely related to the environment, but also with the period of China's specific objectives are closely related to financial management.This article is divided into five parts of the concept of assets and liabilities and revenue and expense view of evolution and its application. The main contents of each part as follows:The first part is an introduction. In general the basic content of the thesis overview paper describes the background, research purpose and meaning of theoretical and practical research, in the present research at home and abroad, based on the statement of the article on the main contents and methods and ideas.The second part, this part has tow aspects. First, the concept of assets and liabilities and revenue and expense view explore the origin and development from the perspective of development and evolution of a comparative analysis between the two. Secondly, from the theoretical basis, accounting objectives, the definition of accounting elements, accounting recognition, accounting measurement, income measurement, qualitative characteristics of accounting information and financial performance reports in terms of content, and features a comparative analysis of two views.The third part of the concept of assets and liabilities and revenue and expense view in the development and application of China. Two views described the historical changes in China, analysis of new guidelines for using the balance concept of reason and balance view of adoption of accounting theory and practice of accounting.The fourth part, the balance from the three parts of the application process in China in view of the problems and make recommendations for its improvement. This is the basic content of three parts:the cost of asset-liability view and revenue-expense view understanding of the problems and recommendations; the development of the basic norms of the problems and recommendations:and specific guidelines for handling business problems and suggestions.The fifth part is the summary of this thesis.