Study On The Improvement Of Enterprise's Continuing Operation Ability Based On Related Party Transactions

In the context of increasingly fierce competition in China's market economy,the problems of listed companies in terms of sustainable operation capability are gradually exposed,and bankruptcy and failure of companies are common occurrences.As the basic assumption of accounting,continuous operation is the basic premise for the survival of an enterprise,and it is also one of the accounting information most valued by the stakeholders of an enterprise.Therefore,how to improve the business continuity of enterprises has become a hot topic of academic research.In recent years,the rapid development of China's capital market led to an increase in the number of listed companies,the affiliated party transactions has become a more common type of transaction,the auditing reports issued by certified public accountants in the listed companies by related party transactions mentioned in the number of continuing operations are more frequent,which including the related party transactions as a countermeasure of improving the capability of the continuing operations.Based on the complexity of the affiliated party transactions,may lead to manipulate profits,transfer funds,such as illegal behavior,but also have the advantage of saving transaction costs and promote corporate earnings,thus to explore how to decrease the negative effect of the affiliated party transactions of the negative impact of the ability to continue as a going concern,to ensure continued to improve the ability to operate is vital.Combined with the above ideas and problems,this article choose representative company CTRL,on consulting a large number of continuous operation ability and the affiliated party transactions on the basis of related literature,firstly analyzes the major asset sale leads to the ability to continue as a going concern of skepticism,to explore the strategies for improving the capability of the continuing operations.Second model based on three factors of the affiliated party transactions continued operation of critical manufacturing ability before and after the comparison,analysis using the results of the related party transactions to improve the ability to continue as a going concern and the reason for the failure,find that optimize the allocation of resources environmental compatibility,flexible financial reserves and transaction security compliance design,internal regulation,etc,will affect the effect of related party transactions,to improve the ability of continuing operations.Finally based on the above improve the cause of the failure put forward the optimization measures of the following four aspects: scientific judgment related party transactions as the countermeasures to improve the applicability,before trading information gathering and stakeholder participation implementation of environmental optimization,through sound trading pricing control and protect the interests of minority shareholders to optimize the design,the implementation of hierarchical authorized examining and approving mechanism and information disclosure mechanism to optimize the implementation safeguard mechanism.To sum up,it is hoped that the study in this paper can provide some reference for listed companies in China to improve their continuous operation ability by using related party transactions.