The Study On Equity Transaction

On the year of2007, China’s listed companies began to implement the new accounting standards for enterprises. The annual reports of listed companies in recent years by comprehensive analysis shows that the enterprise accounting standards system achieved the new and old conversion and smooth implementation, at the same time, the comprehensive ability and application level of the listed company to the accounting standards for enterprises enhances unceasingly. Along with the development of the capital market, there are varied new economic business, trading form of emerging turning up with some problems and situation, especially in deliberated trading such as trading between some controlling shareholders or related parties.In2008the ministry of finance issued accounting letter [2008] no.60which mentioned the concept of equity trading for the first time. No matter the International Accounting Standards Board)(IASB) or our accounting standards are not explicitly defined equity trading, except that the Financial Accounting Standards Board of US had issued the concept of the principle, however it still has no explicit judgment based on what dealer is regarded as shareholders, resulting in some public companies still having earnings management of space by trades which essentially belongs to the equity trading, increasing the risk exiting in China’s capital market, and harming t China’s capital market seriously by financial information with bad quality.Perfect enterprise accounting standards system, keep pace with time, make the regulation in time for the accounting of the new economic business, and define the related concept to warranty high quality of enterprise financial information, lower transaction costs, promote efficiency of flow of funds and resources configuration. It’s beneficial to the healthy development of China’s capital market. This paper, based on the background of the development of the "equity trading", mainly introduces China’s enterprise accounting standards, the financial accounting standards of the US and international accounting standards board relating to the relevant provisions of equity trading, and try to explain the equity trading and summarizing judging methods of it with considering our cases which are regarded as equity trading matters in capital market. The paper also briefly introduced problems while equity transaction were processing in practice, such as related gain and loss were charged profits and losses, or the equity transaction and other comprehensive income confused people, and lead to enterprise financial information chaos, And put forward the corresponding proposal. Finally, this paper mainly put forward several advices about a clear concept and a judgment of equity transaction from the enterprise accounting standards and government supervision.The development of capital market needs continuously debugging of government, perfects the function, reduces the direct intervention, and takes on more responsibilities to the public. The government regulators shall establish high quality enterprise accounting standards system, establish the quick reaction mechanism for accounting professional technical problem for economic matters such as "equity trading", correct individual public company accounting treatment deviating from the accounting standards and the misuse of information disclosure, and warranty Chinese accountant’s international rights, promote the standardization and internationalization of accounting.