The Influence Of Accounting Policy On Accounting Conservatism In The Mining Industry

The mining industry is closely related to people’s lives,its development plays a crucial role in promoting economic and social development.Along with the development of China’s capital market,accounting business processing and accounting information disclosure have occupied an increasingly important position in the development of listed companies.Unlike other industries,the mining industry has a certain degree of uniqueness in its business scope and operating conditions.The complex economic environment places higher requirements on the accounting information disclosure level of listed companies in the mining industry.The mining industry urgently needs to improve the quality of financial reports.In order to achieve convergence with the international market.The update of accounting standards makes the choice of accounting policies faced by listed companies in the mining industry increase.At the same time,accounting conservatism also gradually increases,therefore,in the selection space of accounting policy,it is particularly important for listed companies in the mining industry to select appropriate accounting policies for the company itself,to achieve effective accounting business processing and information disclosure and to meet the interests of related parties,and this is also a study of China’s market economy.In this paper,in order to understand the theory of relevant policy options,empirical research methods are used to select annual report data for successive ten years from 2007 to 2016.The surplus stock returns model was used to study the influence of accounting behaviors of listed companies on the accounting conservatism.The results of the research show that:In the depreciation policy of fixed assets,the accelerated depreciation method is more conducive to the improvement of robustness than the straight-line method.However,in the portfolio accounting policy,the conclusion is drawn that it is inconsistent with the individual accounting policies.The annual average method is more favorable than the accelerated depreciation method to improve the accounting conservatism;the inventory pricing method,the weighted average method will reduce the accounting conservatism,and the other method can improve robustness;in the provision method for bad debt provisions,the balance percentage method will significantly reduce the soundness of accounting;companies that are explicitly disclosed in research and development expenditure disclosure can improve the soundness of accounting.When examining the combination of the above accounting policies and the influence of accounting conservatism,the policy choices of the degree of disclosure of the research and development expenditure disclosure fail to pass the significance test,and the remaining three policies will reduce the accounting conservatism.Therefore,for listed companies in the mining industry,they should choose combinations of accounting policies rather than looking at the effect of a certain policy in isolation.This will help improve the soundness of accounting in China’s capital market,enhance the selection of accounting policies of mining companies,and improve the accounting standards system,so as to achieve the sustainable development of listed companies in the mining industry.