Accounting and accounting profession to determine

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Accounting and accounting profession to determine the authenticity

So far, the Ministry of Finance issued (or revision) of the specific criteria and the end of 2000 enacted a new is to give some of the judging criteria. This means that in practice, the accounting personnel often need to combine the specific circumstances of the enterprise to make professional judgments. However, in the accounting practice, accounting professional judgments often become a means to manipulate profits, which affect quality of accounting information as an important aspect. Based on the accounting profession to determine the angle, trying to enhance their quality of accounting information to explore effective ways. Emphasis does not deny the authenticity of Accounting Professional Judgement (a) the accounting on a is to enable information users to make informed judgments and decisions based on the recognition, measurement and transmission of economic information in the process (AAA, 1966). It is by the recognition, measurement, recording, reporting, analysis, forecasting (planning), assessment and a series of elements (part of) the organic composition of the system. Limited by the accounting methods and accounting systems are not directly measure the process of business activities and results, but by the recognition, measurement and reporting of the assets, liabilities, revenues, expenses and profits, reflecting the business activities of the formation process and the results information. In theory, no matter which part of the accounting system of the method, accounting information must be to ensure that the objective truth as the criterion. Reflect the basic meaning is: to truly reflect the situation it is intended to reflect the basis of the same time to the user through the verification report the situation to ensure that it has this quality. Which has two meanings, one is required strict accounting personnel in the work of professional ethics, based on realistic accounting recognition, measurement, report or disclose the financial position and operating results; the second is the financial reporting requirements of each of the indicators in the , can be traced back to the original records, which can be verified through a certain method to verify. We emphasize and maintain the authenticity of accounting, on the one hand guidelines should minimize the accounting policies and methods of choice, on the other hand should also focus on training professional accountants to determine capacity. Because the objective circumstances varied, complex, and the criteria, the system can not possibly exhaust all actual or potential transactions, they could not be the only universal constant and stable accounting policies and accounting methods. With the acceleration of world economic integration, the more wide trading range, the more complex, richer methods of accounting. In this case, the professional judgment becomes essential. (B) determine the accounting profession throughout the accounting recognition, measurement, recording and reporting of the entire process accounting This accounting professional judgments throughout the accounting recognition, measurement, recording and reporting the whole process, involving all aspects. Work in the accounting practice mainly as follows: (1) the choice of accounting principles and coordination. For example, when the economic substance of transactions and events to its external manifestations are not consistent, should focus on economic substance, which would be judged by professional analysis and to ensure the reliability of accounting information; of an economic business is important, whether the impact of information the user's decision-making and whether disclosure should be a separate, guidelines, systems are not difficult to give specific recognition criteria, accounting professionals need to make judgments. (2) The accounting policy choices, including the method of inventory valuation, fixed asset depreciation methods, choice of tax accounting methods, asset valuation and the end of provision for impairment of assets, borrowing costs and the selection of treatment methods related party relationships and transactions to determine such matters as disclosure. (3) Accounting estimates, such as the proportion of bad debt and bad debt provision for the recognition of losses, the useful life and residual value of fixed assets to determine the rate, the amount of provision for impairment of assets and how to judge or do matters and its a statement or balance sheet treatment disclosed. This sense, accounting is a seemingly accurate but actually is not an exact science, accounting theory and practice of the many issues and trade-offs is not a universal standard. The end product of accounting - accounting information is mostly a product of subjective judgments. Even in strict accordance with rules, the same raw data for the accounting treatment, different accounting staff will yield different results, sometimes difficult to have an objective standard. However, as long as the spirit of the principle of fair judge of the accounting data can be objective and fair view of the accounting entity's financial position and operating results, the results of different treatments is understandable and acceptable. Professional Judgement: technical and social nature of the dialectical unity judge is attribute the thinking process. Accounting professional judgments are based on the expertise of professionals based on the professionalism of the judge in charge rather than pure assumptions, to determine the process reflects the technical and social nature of their dialectical unity. It has the technical, because the accounting profession practitioners encounter in the course of things or phenomena, must be based on their professional knowledge and personal experience to make a rational decision. Throughout the integration process to determine those individuals to judge the level of theoretical knowledge, experience and business skills. This is also the accounting profession to determine the most obvious features. The social nature of the accounting profession to determine the mainly manifested in two aspects: First, determine the accounting profession is under a restricted and requires relatively subjective, should be subject to external constraints of social mechanisms (such as regulations, policies ,[link widoczny dla zalogowanych], objectives, conditions and technical levels), Accounting own characteristics, principles and the corresponding theoretical framework and the accounting staff's own standards of professional ethics constraints. Second, the accounting profession to determine the management of enterprises, investors and potential investors, creditors and credit, governments, tax authorities and other interested parties of the decision-making behavior has a distinct economic impact. This is because different accounting judgments have different accounting information, and different economic consequences of accounting information is different from that of the stakeholders will have different effects on decision-making, and business interest groups have different interests sharing. Accurate accounting professional judgments can be properly and fairly reflect the objective economic and business transactions occur in real terms, for the stakeholders to provide economic and business transactions in real terms, output false accounting information and misleading stakeholders in decision-making, thereby affecting the efficiency of the allocation of social resources. Therefore, the accounting staff during the accounting professional judgments, not just from a technical accounting perspective, but also from a broader perspective and a more open, more consideration of various factors (including economic and social impact ) and listen to the views, good deal of its

accounting professional judgments can not become a means of accounting fraud accounting standards and accounting system gives enterprises the freedom of choice of accounting does not mean that accounting staff can not binding, deliberately fabricated to provide false information. Accounting Professional Judgement must be standards, system and related laws and regulations within the limits allowed. Operational matters for the certainty, according to provisions already provided; if required to choose from a variety of accounting policy, they should according to its specific situation, should be selected through the analysis to determine appropriate accounting policies; standards or systems are not provided, the need for accounting personnel in a true and fair principle to make professional judgments. As for the uncertainty of economic transactions or matters that require the most recent information available to make judgments based on, and try to ensure the legitimacy of sources of information. Only in the accounting profession to determine criteria for the space available within the system to judge is legal. Once beyond this space, will go to the extreme, transformed into the accounting manipulation, will ultimately subject to legal sanctions. And accounting from the development of world economic integration trends, the wider the trading range, the more complex, richer methods of accounting, the accounting profession to determine the space will also be greater. Therefore, the priority issue is how to prevent some people, distorting the accounting profession to determine the substance, the use of professional judgments and flexible features, on the accounting fraud, especially in the business did not complete the assessment indicators or achieve a particular purpose, the deliberate adjustment of relevant indicators providing false financial reports, rather than exclude professional judgments. Correct use of professional judgments, and enhance quality of accounting information (a) to strengthen training and improve the quality of accounting personnel 1. Strengthen the business training. To determine the technical requirements of the accounting profession and accounting personnel must have expertise and a solid basic skills. On the one hand and accounting personnel must change their ideas, find what you want to change the old habit of the past, and actively strengthen the new standards, the new system and related laws and regulations to learn and constantly update and enrich their business knowledge and improve their overall quality; the other hand, management accounting To follow-up by strengthening the education of accounting professionals, targeted social forces to organize a full range of accounting personnel, multi-level professional training and guidance, such as interpretation and training for the new guidelines, the main points of the laws and regulations, difficulties and new discussion of economic business to enhance their professional judgment skills. 2. To strengthen the accounting professional ethics. True and fair accounting profession to determine the basic criteria. GAAP accounting personnel the flexibility given to the greater need to have a good work ethic. Especially when no clear legal provisions, the role of accounting ethics is to promote the business and accounting personnel to resist the temptations of self-study, and from power and prejudice, to ensure that judgments of the accounting data can be objective, fair accounting entity's financial position and operating results. In the long run, should establish a public opinion and the integrity of the file system as the basic form of social evaluation mechanisms. This approach has a special intrinsic deterrent, and eventually to the law from his accounting staff to self - the true and fair view of the accounting choice. (B) improve the regulatory system of accounting to internal control systems, it is necessary to improve the corporate governance structure, give full play to the board of supervisors and independent directors on the company to operate and supervise the financial activities to ensure that listed companies prepare and disclose accounting information accurately. Second, establish a sound internal control system. Starting from their specific business environment, the construction of the internal control system based on the general rules for the operation of its internal control system weaknesses and loopholes exist, establish a sound internal control system of enterprises, especially in the authority to authorize the design of the system of accounting personnel should be given the right of certain independent judgments. External accounting regulation on corporate systems, must follow the reliable. Second, strengthen the government's external oversight, that is, by the state finance, auditing, securities regulation and other departments to strengthen their corporate financial inspection and auditing, in particular, to strengthen the guidelines, the implementation of quality supervision and inspection system to determine the binding behavior of corporate accounting profession, and enhance the objectivity of accounting information and fairness. Professional Judgement by the name of fraud and repeated violations of financial discipline, and must be corrected in a timely manner, or treatment should be given serious economic sanctions, administrative penalties (including the implementation of an exit mechanism) until investigation of his criminal responsibility. Third, strengthening the legal system. Our legal system is the accounting officer to stop and prevent the option of using accounting policies and accounting career of it, the subjective deliberate false accounting information assurance. In the legal system, not only should improve the legislation, the accounting information quality management regulations, provisions should also be clear and specific violations of sanctions, supervision and accounting staff to the guidelines, policies and relevant laws and regulations to the extent permitted to choose, judge estimated.