Impact On Financial Performance Of Listed New Energy Vehicle Companies From New Government Grants Standard

China's “Accounting Standards for Business Enterprises No.16 – Government Grants”(Finance Accounting [2017] No.15)was revised by Ministry of Finance in May 2017.And giving a subsidy is an important means of government in market economy construction in China.In recent years,new energy vehicles is the industry that get Chinese government's strong support and large amounts of government subsidies and will be affected by the revision of CAS16 in the first place.The impact of government subsidies on financial performance is influenced by both the amount and type of funds disbursed,and by the accounting method in which the company treats the subsidized funds.This paper explores the impact of the latter on the financial performance of new energy vehicles companies.By predicting the financial effect after the implementation of new CAS16,it is of certain significance to promote the implementation and improvement of new CAS16,as well as guiding the government's subsidies behavior from the perspective of accounting.This paper focusing on government subsidies and the change of CAS16 explores the reasons and changes in the revision of CAS16 through the study for the background and evolution of China's Accounting Standards and the essence of government subsidies.The biggest change in the new CAS16 is that a new “other income” subject is presented above the “operating profit”;the second is newly added the net method related to asset for selection;the third is that it defines the scope of application of the standard,and standardizes the accounting treatments of comprehensive government subsidies,policy preferential loans and interest subsidy.The new CAS16 is an improvement on the old CAS16,but it also brings new problems.In the industry analysis,the accounting data of the automobile manufacturing enterprises is processed according to one method of old CAS16,two methods of new CAS16,then do factor analysis for each of the three samples.According to the factor score ranking,it is concluded that the new CAS16 will reduce the relative financial performance of new energy automobile companies in the automobile manufacturing industry,which more reflects the negative effect of government subsidies.Through further comparative analysis of BYD's financial capacity,it is found that new CAS16 can improve BYD's financial performance,which more reflects the positive effect of government subsidies.The innovations of this paper lie in: first,grasp the reasons for the revision of CAS16 through the exploration of the evolution of China's accounting system;second,the positive and negative effects of government subsidies are proposed to help analyze the impact of the implementation of new CAS16 on the financial performance of listed new energy vehicle companies;third,the change of factor score ranking is used to explain the impact of new CAS16 on financial performance.