Research On Accounting Policy Choice’s Trait Of Listed Company Of China Engaging In Telecommunications

The choice of accounting policy seems only technical specification on the accounting process apparently, but actually its essence is a kind of game rules and institutional arrangements of social economy and political interests. Different choices of accounting policy will produce different accounting information which would make different business results and would consequently give every single interest-related participant of the enterprise various results of the revenue distribution and different efficiency of social resource allocation.For these reasons, this paper explores characteristics of accounting policy choice of the listed companies in China’s telecommunications industry by the methods of combination of theoretical analysis and empirical analysis.The paper firstly defines the concept of the accounting policies and accounting policy choice, and then discriminates some possible confusion of the concepts. After that, the paper introduces five theories about corporate accounting policy and the choices of it, and then analyzes how every single theory connects with corporate choice of accounting policy. On the basis of the above theory, the paper selects twenty listed companies in the field of telecommunications industry of China which are listed in the Shanghai Stock Exchange as research samples. By data of three consecutive years’Annual Report data, from 2008 to 2010 of the twenty companies, the paper adopts descriptive statistical analysis methods to analyze eight facets of accounting policy choice, like measure of inventory price method, provision for declined value of inventories, depreciation methods of fixed assets, amortization method of intangible assets, method of provision for bad debts, income tax accounting methods, handling method of business of foreign currency and revenue recognition methods, attempting to dissect their features and existing problems. Through these, the paper summarizes non-standard deeds and things which could be adjusted about accounting policy choice in China’s telecommunications industry and even all listed companies. At last, this paper give some advice on way how to regulate choice of accounting policy.