On the principle of prudence in the accounting practice of the application 論謹慎性原則在會計實務(wù)中的應(yīng)用

1、On the principle of prudence in the accounting practice of the application ofAbstract: The principle of prudence has been an earlier recognition of national accounting profession. We should fully understand the principle of prudent application of the fundamental purpose, strengths and weaknesses, ba

2、sed on a better application of prudence in accounting principles, with particular attention to the principle of prudent application of appropriate, so as to avoid weaknesses, to play its full role. In this paper, the accounting practice in the application to do some analysis. Key words: moderate app

3、lication of accounting principle of prudence 0 Introduction With the current international and domestic economic situation changes, enterprises are faced with the objective environment and the risk of uncertainty rises, the market is the volatility of demand accounting staff had to use an accounting

4、 method to determine the estimated proceeds of a particular accounting period. In order to reduce the arbitrariness of accounting estimates and reduce the risk of financial accounting reports and attach importance to the principle of prudent use of inevitable. Now how to understand and apply the pri

5、nciple of prudence to become the focus of everyones attention, here I can talk about some views on this issue. A principle of prudence in the enterprise in the main application of accounting The principle of prudence in the application of foreign countries, there are two scenarios: First, the limite

6、d applications, such as the United States applied the principle of prudent approach for the widespread adoption of largely lower of cost or market method, careful estimate or there is a loss, no secret preparations. 2 is more widely used, such as Germany, Japan, etc., allowing provision for various

7、forms of preparation. Chinas Accounting Standards and accounting systems require that accounting should follow the principle of prudence, reasonable accounting of the losses and expenses that may occur, but no provision for a secret preparations. Visible, prudent accounting principles applied in our

8、 country is a limited situation. The principle of prudent use in China was phased development. Along with the deepening of economic reform and market-oriented improvement of business environment in which the objective economic uncertainty growing, accounting information users pay more attention to t

9、he risks and uncertainties related to the information revealed. The principle of prudence at this stage in Chinas use of corporate accounting can be summarized in the following aspects: From the perspective of assets. Prudence principle requires the full estimated costs of possible losses and to avo

10、id the virtual total asset value. From the debt perspective. Prudence principle requires recognition and measurement of liabilities of enterprises should be identified to avoid the delay and less debt accrued liabilities. From the revenue perspective. Prudence principle requires that companies are n

11、ot expected to return that may occur, namely in identifying and measuring the yield, whichever is later than whichever is earlier, whichever is less rather than whichever is more. From a financial analysis point of view. The principle of prudence in the financial analysis mainly on short-term solven

12、cy, business assets, a preliminary analysis of operational efficiency, to analyzing the prudence principle in Chinas current financial accounting in their use. 2 The principle of prudence in the use of accounting in the enterprise the two sides of The principle of prudence reflected in the use of th

13、e whole process of accounting, including accounting recognition, measurement, reporting and other aspects. However, in all accounting principles, the principle of prudence is the most controversial. 2.1 The principle of prudent use of the advantages of business prudence principle, by appropriate pro

14、vision for impairment of assets, reasonable costs are recognized and prudent recognition of income, assets, squeezed in the water, consolidate the foundation for profits to enable enterprises to provide accounting information more robust. The benefits of the implementation of the principle of pruden

15、ce is mainly reflected in: assess the operating performance of real operators to evaluate the fulfillment of its fiduciary duties, there is help protect the interests of investors and creditors; production and operations at risk and uncertainties, the implementation of sound Accounting help enterpri

16、ses to increase the ability to withstand business risk, improve enterprise competitiveness in the market; the principle of prudent enterprise risk adequately estimate the decision-making can reduce the risk, and therefore the principle of prudent moderation is conducive to ensuring quality of accoun

17、ting information to enhance the reliability of accounting information and relevant. 2.2 The lack of prudence principle 2.2.1 Recognition and measurement difficult. As Chinas current asset information, the price the market mechanism is not sound, coupled with the debt have been invested enterprise bu

18、sinesses and financial condition and continued operating conditions is difficult to identify. The actual operation is highly subjective, subject to accounting personnel professional quality, professional ability to judge the impact of accounting information is difficult to verify. 2.2.2 accrual bein

19、g abused, because the specific percentage of impairment of assets by the enterprises make their own determination, while the two-year loss from continuing operations of listed companies will be ST treatment, three consecutive years losses it would stop listing, listed companies may be less impairmen

20、t mentioned inflated profits, and some shareholders of listed companies in order to avoid debt, make more impairment. At the same time may have pre-caution late careful, careful post-or pre-caution paradoxical situation. Reposted elsewhere in the paper for free download http:/ 2.2.3 The existing tax

21、 charged to the cost of pre-tax differs from the accounting system, when the provision for impairment, the need to pay up income tax, increase the enterprises cash flow, limiting application of the principle of robustness. And the prudence principle and matching principle, historical cost principle,

22、 the authenticity of the principle of accrual principles, comparability principle, the principle of consistency there is conflicting aspects. 2.2.4 Some of the assets at historical cost pricing, and some assets marked to market valuation, the lack of consistency, when the market price higher than th

23、e cost of the balance sheet does not reflect the true value of the assets may distort the companys annual earnings in the short term delaying the states tax, but also affect the quality of accounting information, managers can not make optimal decisions. And in the practical application of different

24、enterprises are not balanced, only provision for impairment of listed companies, while the national economy, accounting for the dominant position of the non-listed state-owned enterprises are not clearly defined. The principle of prudence have been repeatedly criticized, primarily because also in it

25、s operation in practice of the subjective and arbitrary, and is now evolved to become part of the profits of listed companies and even manipulation of earnings management tool. 3 the implementation of the principle of prudence should pay attention to the problem 3.1 Accounting Standards to constantl

26、y improve, so that the relevant accounting standards and systems should be operational. First of all, the principle of prudence in the application process on how to grasp the degree is the key. Establish and improve accounting standards corresponding to the terms as far as possible to ensure its fea

27、sibility, such as the proportion of different methods of measurement set up under an upper and lower limits, the recovery of accounts receivable application of LIFO method, can guide the corporate accounting practices, but also Enterprise Application improper means to avoid whitewash report, so that

28、 the information provided by each company was comparable. Secondly, in order to solve the enterprises to implement the principle of prudence to worry about, in the state finance within the carrying capacity, appropriate tax policy and accounting policies to narrow differences. If all enterprises in

29、accounting policy within the framework of the accrual method of preparation of their own choice and ratio of reported to tax authorities for the record, after the audit by certified public accountants should be allowed in the tax charged to. Again, gradually expand the scope of application of pruden

30、ce, prudence principle in the listed company after the implementation of the pilot should extend the scope of its application to non-listed companies to promote different types of enterprises in the same market, fair competition, so that investors and creditors business analysis has strong comparabi

31、lity of accounting information in order to make a real and effective decision-making information. Finally, the notes to financial statements should be more detailed disclosure of the application of the principle of prudence, standardize financial data and non-financial data disclosure, to increase c

32、orporate transparency in the use of prudence. 3.2 the accounting staff to improve the overall quality of professional ethics and to improve accounting personnel professional judgment. Prudence principle is based on the existence of uncertainty, a variety of possible issues should make a reasonable a

33、ccounting, which must be a degree, excessive caution or lack of caution will cause the financial condition and operating results are not accurate and revealing, and thus the enterprise users of accounting information in decision-making and so misled. And therefore need to find a prudent application

34、of the principle of balance, so that the principle of prudence to maximize the benefits will be bound by its shortcomings in the minimum. However, in practice the principle of prudence in the implementation and application of the accounting staff to rely on professional judgments, therefore asked th

35、e accounting staff need to improve the professional ability to judge, accurately grasp the essence of the principle of prudence in the matter of uncertainty estimates and judgments, seeks to objectivity, impartiality and avoid subjective and arbitrary, to ensure that the principle of prudent use of

36、a moderate. Therefore, to continuously improve the capacity of accountants professional judgment order for the accounting principle of prudence lay the foundation for appropriate use. 3.3 Enterprise external environment needs further improvement. Should further improve the information, and prices th

37、e market mechanism, the use of modern information network technology regularly publish a variety of asset prices and information for a variety of impairment provision for the operability of removing obstacles to fairness and objectivity. In addition, should give full play to the role of an independe

38、nt audit of the external oversight to prevent abuse and distortion of the principle of prudence, to avoid artificially increasing conflict with other accounting principles. 3.4 The assessment of listed companies to improve evaluation of indicators for assessing operating profit as a companys profita

39、bility and operating results of the key indicators. Improve asset impairment evaluation indicators and corporate link between the reduced provision for impairment of assets of listed companies to prepare to use the motivation to manipulate earnings. Reposted elsewhere in the paper for free download

40、http:/ 3.5 deal with the principle of prudent use of full disclosure. The purpose of the use of the principle of prudence is to fully assess the risks and losses, to avoid the inflated profits, virtual total assets, to ensure the usefulness of accounting information in decision-making. Therefore, an

41、y and caution about the use of the principle will affect the users of accounting information on the current and future information on rational judgments, should be in the financial report for full disclosure in order to clear the fact that users of information, independent judgments. 3.6 on the ente

42、rprises internal management purposes and should not place undue reliance on the principle of prudent use of the neglect of the potential for the management of important and difficult, because the application of the principle of prudence in accounting in the prevention and management of risk to be a

43、part of it is relative to the the occurrence of the economy in terms of business with ex post. Prudence principle is one of the basic principles of accounting, it acts of a specific accounting guidance plays a very important position. Therefore, we must be careful in accounting practices implement t

44、he requirements of the principle of prudence, in good faith to achieve the best use of live. References: 1 business accounting standards. Specific guidelines .2006. 2 Xia talent. Intermediate Accounting M. Beijing: China Financial and Economic Publishing House .2006. 3 ZHANG Xian-Zhi, Chen allies. F

45、inancial Analysis M. Dalian: Dongbei University of Finance Press. 4 Hu Haihua. Analysis of the accounting principle of prudent use of its limitations. Contemporary economic J .2008-year 08. Reposted elsewhere in the paper for free download http:/更好的翻譯建議感謝您為 Google 翻譯提供翻譯建議。提供更好的翻譯建議：On the principle

46、 of prudence in the accounting practice of the application of Abstract: The principle of prudence has been an earlier recognition of national accounting profession. We should fully understand the principle of prudent application of the fundamental purpose, strengths and weaknesses, based on a better

47、 application of prudence in accounting principles, with particular attention to the principle of prudent application of appropriate, so as to avoid weaknesses, to play its full role. In this paper, the accounting practice in the application to do some analysis. Key words: moderate application of acc

48、ounting principle of prudence 0 Introduction With the current international and domestic economic situation changes, enterprises are faced with the objective environment and the risk of uncertainty rises, the market is the volatility of demand accounting staff had to use an accounting method to dete

49、rmine the estimated proceeds of a particular accounting period. In order to reduce the arbitrariness of accounting estimates and reduce the risk of financial accounting reports and attach importance to the principle of prudent use of inevitable. Now how to understand and apply the principle of prude

50、nce to become the focus of everyones attention, here I can talk about some views on this issue. A principle of prudence in the enterprise in the main application of accounting The principle of prudence in the application of foreign countries, there are two scenarios: First, the limited applications,

51、 such as the United States applied the principle of prudent approach for the widespread adoption of largely lower of cost or market method, careful estimate or there is a loss, no secret preparations. 2 is more widely used, such as Germany, Japan, etc., allowing provision for various forms of prepar

52、ation. Chinas Accounting Standards and accounting systems require that accounting should follow the principle of prudence, reasonable accounting of the losses and expenses that may occur, but no provision for a secret preparations. Visible, prudent accounting principles applied in our country is a l

53、imited situation. The principle of prudent use in China was phased development. Along with the deepening of economic reform and market-oriented improvement of business environment in which the objective economic uncertainty growing, accounting information users pay more attention to the risks and un

54、certainties related to the information revealed. The principle of prudence at this stage in Chinas use of corporate accounting can be summarized in the following aspects: From the perspective of assets. Prudence principle requires the full estimated costs of possible losses and to avoid the virtual

55、total asset value. From the debt perspective. Prudence principle requires recognition and measurement of liabilities of enterprises should be identified to avoid the delay and less debt accrued liabilities. From the revenue perspective. Prudence principle requires that companies are not expected to

56、return that may occur, namely in identifying and measuring the yield, whichever is later than whichever is earlier, whichever is less rather than whichever is more. From a financial analysis point of view. The principle of prudence in the financial analysis mainly on short-term solvency, business as

57、sets, a preliminary analysis of operational efficiency, to analyzing the prudence principle in Chinas current financial accounting in their use. 2 The principle of prudence in the use of accounting in the enterprise the two sides of The principle of prudence reflected in the use of the whole process

58、 of accounting, including accounting recognition, measurement, reporting and other aspects. However, in all accounting principles, the principle of prudence is the most controversial. 2.1 The principle of prudent use of the advantages of business prudence principle, by appropriate provision for impa

59、irment of assets, reasonable costs are recognized and prudent recognition of income, assets, squeezed in the water, consolidate the foundation for profits to enable enterprises to provide accounting information more robust. The benefits of the implementation of the principle of prudence is mainly re

60、flected in: assess the operating performance of real operators to evaluate the fulfillment of its fiduciary duties, there is help protect the interests of investors and creditors; production and operations at risk and uncertainties, the implementation of sound Accounting help enterprises to increase