Study On Listed Company Accounting Policy Selection In Chinese Bio-pharmaceutical Industry

The accounting policy selection runs through all financial activities of enterprises, which affects the quality of one enterprise’s financial information directly. The quality of financial information of listed companies significantly influenced the operational efficiency of the securities market, and which affects the orderly functioning and healthy development of the economy significantly.For different industries, their motivations in accounting policy selection are different for their characteristics in production and operation activities are different. So it is necessary to carry out thematic studies on accounting policy selection in specific industries. The bio-pharmaceutical industry is a High-tech industry and develops rapidly in our country in recent years. Given that its gradual rise in Chinese economy and influence in people’s lives, but the study on listed company accounting policy selection in Chinese bio-pharmaceutical industry is blank currently, so this article focuses on bio-pharmaceutical companies to study accounting policy selection. The significance can be divided into two points: first, the study can provide advice and reference for listed bio-pharmaceutical company accounting policy selection to standardize the behavior; second, it can provide some guidance to the relevant external policy-making and regulatory agencies to regulate the capital market order.This paper firstly defines the concept of accounting policy and accounting policy choice, and then introduces the theoretical basis of the accounting policy selection. Based on the theoretical analysis and literature review, we randomly selected 20 domestic bio-pharmaceutical industries in Shanghai and Shenzhen listed companies as sample, and select the biennium 2012-2013 annual report data to analyze accounting policy selection and preference in the industry. Next, we choose Hualan to carry out A Case Study combined with the actual situation; in this study we choose annual data from 2005 to 2014. The analysis focus on the company’s accounting policy selection and their consequences basis. Finally, the paper points out the problems in accounting policy selection, including underutilization of the selection right, vague disclosure, poor overall effect and so on, and then, the paper makes some suggestions for the improvement of its accounting policy choices from three angles, including policy makers, enterprises themselves and the securities regulatory authorities.