Cosco Shipping Energy Transport Co, LTD The Accounting Choice To Change

According to contract theory,accounting standards is the nature of government and enterprises in accounting policies and methods for content to create a series of conventions.In the process of economic development,however,due to the unstable market economic environment and economic business content is increasingly multifarious,makes this contract itself has certain defects.Enterprises because of our contract have the option,but use it for private gain,the pursuit of self-interest maximization.Especially in recent years,the accounting choice behavior in listed companies change into the norm,change its surplus management through accounting selection,smooth profit objective case also common occurance.These are special purpose behavior,not only detrimental to the long-term development of listed companies have also emerged as obstacles to China securities market benign development.However,due to the special national conditions in our country,draw lessons from foreign research on accounting choice changes of study is not very good service for our country's economy,based on the choice of accounting of our country specific economic form to content change research has become imperative.This paper combines case and theory,the integrated use of mathematical statistics and financial index method,through the present situation of the public company accounting choice changes found its universality,then through the example-offshore to accounting estimate change and accounting policy changes of the specific content,combined with the contract theory,agency theory,economic consequences theory,etc.,to explore the public company accounting choice behind the change agent,economic consequences,and existing problems,in order to provide certain Suggestions to solve the problems.The study found that:(1)the accounting options change behavior of listed companies is universal,showing a trend of increasing year by year,and it is more likely to occur in enterprises with large fixed assets.The change items mainly focus on depreciation of fixed assets,provision for bad debts and subsequent measurement of investment properties.(2)The main means for COSCO to change the accounting choice is to adjust the estimated life and net residual value of the ship,and change the investment model from the cost model to the fair value model.The change behavior is mainly driven by earnings management,salary increase and promoting financial incentives.(3)From the economic consequences of change,the accounting choice can only change the short-term financial situation and operating results,but can not change the actual operating conditions.The reliability of such information may be misleading to the economic decisions of creditors,investors and other information users,damaging their interests and detrimental to the long-term development of the securities market.(4)COSCO can arbitrarily choose accounting changes,manipulate profits.First,the content and disclosure system of accounting standards system in China is not perfect.Second,the ownership structure,the independent director system and the manager performance mechanism of the listed company have some problems.Third,in external supervision mechanism,the independence of certified public accountants is constrained.The performance evaluation index of the boss company is single,the punishment of misconduct is not enough and the social media supervision role is not strong.