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Transformation Of Accounting Mode In China

2011/1/17 11:03:00 42

Accounting Mode Pformation

Establishing and improving the socialist market economic system is the goal of China's economic reform and development.

Original

The historical cost accounting mode is pformed into the current accounting mode.


Traditional historical cost accounting is based on "currency value and commodity price stability". However, under the market economic system, monetary value and commodity prices vary frequently with the market supply and demand. If they are still accounted for by historical cost accounting, they must be deviated from the actual situation of economic activities that they want to reflect. They can not reflect the current value of assets after the price changes and the current production and operation capacity of enterprises, which directly affect the authenticity of owners' rights and interests, so that they may be on the national macro level.

Administration

Internal management of enterprises and misleading investors and creditors result in decision-making errors.


At present, the current accounting mode is based on price changes.

adjustment

Accounting data, and prepare financial reports accordingly, and reflect the current financial situation and production and operation situation of enterprises with reliable and reliable accounting information.


The pformation from the historical accounting mode to the current accounting mode is not only conducive to enterprises to get rid of the disturbance of price changes, but also to fundamentally safeguard the interests of the state and ensure the sustained and stable development of our economy. Therefore, the authenticity of accounting information is the urgent matter to be solved in the establishment of a new accounting mode.

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