Abstract: how to choose the appropriate enterprise accounting methods to ensure the usefulness of accounting information for decision-making, is a modern enterprise financial management of the basic requirements. The choice of accounting methods throughout the enterprise accounting recognition, measurement, recording, reporting the entire process.
Keywords: accounting reports accounting method
A recognized accounting
1.1 The screening process, the choice of specific criteria. What kinds of data to enter the accounting information system, at its option, recognized standards are: determinism, means that future economic benefits related to the project is able to flow into or out of business. If you can not produce economic interests or the economic interests can not flow into or out of business, such data can not enter the accounting information system. measurable, referring only to the performance of the economy with money generated from operations to enter the accounting information system data. This simplifies the accounting standard handling procedures, to facilitate the accounting practices, it is the basis of accounting information can be quantified. relevant, it emphasizes the accounting information to meet the different needs of information users, and enhance the usefulness of accounting information. reliability of accounting information is real, verifiable, and neutral.
1.2 The specific criteria for qualitative selection process. This stage involves two issues: time confirmed that the accounting information system of data entry is entered in the current period or in subsequent periods to enter. Modern financial accounting is the accrual and achieved by the income derived from the principles and basis of the matching principle as a confirmation. If confirmed based on the inappropriate choice will directly affect the quality of accounting information. "identity" is defined as that which confirmed the data into the accounting elements. we must first determine What are the accounting elements of business operations so that the content has changed, and to determine which produced the data included in the accounting elements. If "identity" is defined is not clear, to the quality of accounting information will have a serious impact.
2 Measurement method of accounting
2.1 The choice of measurement attributes. Select the historical cost as the measurement attribute. Because of historical cost is the price of access to resources of the original transaction, which has the reliability, and its measurement is very rich theoretical and practical experience. These advantages ensure the authenticity of accounting information and reliability. However, when the price changes, the comparability, relevance, decreased the ratio of income and lack of logical consistency expenses, results of operations and holding gains is difficult to distinguish between non-monetary assets and liabilities appear underestimated, it is difficult reveal the true financial position of enterprises. Select the current cost as the measurement attribute. The measurement of price movements of virtual property to avoid total revenue, reflecting the true financial condition and objective evaluation of business performance. However, more difficult to determine the replacement cost, and can not fully consistent with the original holders of the capital, while the purchasing power of money it still does not eliminate the impact of changes, but also in the form of capital can not be held to resolve the issue of capital preservation. Select the prevailing market price as the measurement attribute. to the prevailing market price as the current assets value, to evaluate the financial strain, eliminating cost-sharing of the subjective and arbitrary decision-making to meet the relevant requirements. However, it does not reflect the value of the expected use of assets, and thus not all of the assets, liabilities have cash value, and it goes against the the basic premise of the continuity assumption, which assumes liquidation at any time in state enterprises, has shaken the basis of accounting. Select the net realizable value as the measurement attribute. Although this measure reflects the expected liquidity of property embodies the principle of stability, to ensure the reliability of accounting information, but it does not apply to all assets. For example, the net realizable value of intangible assets is difficult to determine.
Above four properties, and each has its advantages and disadvantages of the accounting information quality have both positive and negative effects of impact, so the operation should analyze specific issues, should not negate or fully affirmed.
2.2 The choice of measurement standards. Measurement standards (units) means the properties measurement object measured on a standard measure of the specific use. Available, there are two measurement criteria: nominal monetary units, fixed currency unit (refer to the actual changes in the purchasing power of the currency does not occur.)
The two also have their own advantages and disadvantages of measurement standards, the impact on the quality of accounting information is dialectical. Select the name of the currency unit, although you can simplify the accounting, to a certain extent, to ensure the reliability of accounting information, but there is inflation, nominal currency depreciation, it is likely to cause distortion of accounting information. with fixed monetary unit, can enhance the comparability of accounting information, consistency, but increased the accounting aspects, reflected in accounting information more dependent on the quality of accounting personnel, which virtually human factors increase the impact of accounting information quality.
2.3 Measurement Mode. Measurement properties, and measurement standards in different combinations to form different measurement model, measurement model has ten. This ten measurement models have advantages and disadvantages, should be based on careful analysis to make a choice. Reposted elsewhere Download Center free paper records http://eng.hi138.com
3.1 The recording method of choice. In the recording process, often used in accounting methods, including: double entry bookkeeping, account settings, such as the preparation of accounting entries, these are the forms in order to regulate the setting of accounting information. In addition, you can also accounting methods by the design and use to achieve the purpose of providing specific information. such as corporate stock purchased when the seller in cash discounts given by what method, what subjects to record the acquisition or loss of cash discount. in the total law , the purchase of materials at a discount price before determining the cost, the cost of a discount as a reduction of storage material or as financial benefits, if due to financial mismanagement, the funds were not in place in time which led to more than discount on payments, can not get discounts in carrying on without any reflection. and in the net method, the purchase of materials determined by the net cost after discount, a discount on the book without any reflection of the payments if the discount can not be more than a discount, will have to discount the amount of the loss is included in "cash discount loss" account, which reflects the low efficiency of financial management. <"Enterprise Accounting System>> requirements of enterprises with total cash method of accounting for discounts, but in order to improve the financial management, but also to reduce the cost of inventory there is uncertainty in the pricing, promoting the use of inventory accounting method, net.
3.2 Record the choice of means. <"Accounting Law"> on the accounting rules do not cover all specific accounting operations, each unit needs under the law, the actual accounting work of the unit, with the <"Accounting Law"> of not inconsistent with the provisions under the premise of the development unit within the accounting and accounting management system. As the popularity of computerized accounting, many companies have developed computerized accounting information system. use of computerized accounting approach to accounting, greatly improved accounting efficiency and quality of accounting information. modern network technology is rewriting the traditional and time information exchange. In financial disclosure reports on the Internet conforms to the needs of the global development network, which has a time-sensitive, informative, released wide, low cost, disclosure standards and reducing the distortion and so on.
4 Accounting Method
4.1 Accounting Information presentation method of choice. Financial statements in tabular form, as the form of constraints, only a broad picture of the major projects, for various projects as well as within the often difficult circumstances behind the project are reflected in the table. Such as asset in the balance sheets only at the end of the book value of accounts receivable, as the aging of the accounts receivable situation is no way of knowing, and this information for users of financial statements to understand the quality of corporate assets is necessary. Therefore, enterprises Financial Statements will be provided by accounts receivable aging information. Again, in the balance sheet, book value of some assets listed in its project to extract a separate item for impairment of assets for impairment in the Details reflected in the table, combined with the assets and liabilities appearances, not only close to truly reflect the current market price of the assets, and can reproduce the book value of assets to make accounting information more realistic and comprehensive.
4.2 Financial Statements that the contents of the selection. Pursuant to the preceding above, for an economic business, there may be a different accounting method, if the financial statements do not explain what way the project is accounted for, and will give users of financial statements bring some understanding of the difficulties of accounting statements, or because of changes in accounting rules, companies has changed the accounting method for certain items, to help users of financial statements to better understand the content of financial statements, the accounting statements should be supplemented by instructions .
4.3 disclose the full extent of the choice. In accounting recognition and measurement, directly determines the quality of accounting information. Because the accounting treatment of transactions occurring in the future is not recognized, so that some transactions can not be reflected in the financial accounting reports . For example, loan guarantees to other units, the unit may be unable to repay loans due, the company will produce or have the loss or liability, business litigation may be lost, also have or have losses or liabilities. in the opposite circumstances, will produce or have or have earnings or assets. enterprise issued financial report, the response to these has not actually occur or matter to be presented to illustrate the nature of matter or affect, or do not matter determine the factors. Links to free paper download http://eng.hi138.com