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New accounting standards system including a basic criteria, 38 specific guidelines and related application guidelines. In the 38 specific criteria, including 22 new standards, greatly enriched the existing system of accounting standards. International accounting standards in the United Nations Working Group of Experts on the 22nd session, Vice Minister of Finance Wang Jun said that this new system of accounting standards is "compatible with the UK's national conditions while fully with the international convergence of accounting standards, covering all types of enterprises economic activities that can be implemented independently of the accounting standards. " The implementation of the new accounting standards accounting is undoubtedly a revolution, and has a significant impact on British companies.
新会计准则体系包括1项基本准则、38项具体准则和相关应用指南。在38项具体准则中，包括22项新推出的准则，极大丰富了原有的会计准则体系。在联合国国际会计标准专家工作组第22届会议上，财政部副部长王军称这套新会计准则体系为“与英国国情相适应同时又充分与国际会计准则趋同的、涵盖各类企业各项经济业务、能够独立实施的会计准则体系”。新会计准则的实施无疑是一场会计革命，并且已对英国企业产生了重大影响。
A new accounting standards salient features
1 新会计准则的显著特点
The implementation of the new accounting standards, adapted to the requirements of economic development in the UK market, the new accounting standard has two notable features.
新会计准则的实施，适应了英国市场经济的发展要求，新会计准则具有两大显著特点。
1.1 New accounting standards "international convergence"
1.1 新会计准则的“国际趋同”
Convergence is a great direction, is the trend. In the market and the economic globalization today, the world's accounting standards convergence toward the objective requirements of the development and direction of development. The implementation of the new accounting standards, as well as the UK Accounting Standards accounting work moved forward - a big step, but also with international accounting standards are becoming increasingly coordinated. In the content system, the basic realization of the new system of accounting standards with international financial reporting standards consistent; in the basic standards, accounting factor measurement and accounting policy choices and other aspects, the new accounting standards system made a bold reference. Among them, the new accounting standards system in the measurement of accounting elements is a major highlight of the fair value of the re-introduced to achieve new breakthroughs in the UK Accounting Standards.
1.2 New accounting standards "Britishness"
Convergence is not the same, is not equal to copy the drawing. Social systems, cultural backgrounds, practice environment and the public's level of awareness and so different, determined that we in the international convergence, we must study and formulation of national conditions from England UK accounting standards, enabling it to dovetail with international practices, while maintaining British specialties. New accounting standards related party transactions and transactions in the disclosure, asset impairment losses reversed in part on the accounting treatment of government grants and accounting treatment of business combinations maintained a British specialty. New accounting standards continue to retain the importance of the principles of the precautionary principle, the principle of substance over form, but also emphasizes the comparability, consistency, clarity and so on principle, but the accrual and historical cost accounting is no longer used as the basic principles of .
Two main changes in the new accounting standards
New accounting standards mainly in inventory valuation, accounting measurement methods, provision for impairment of assets, debt restructuring, corporate consolidated financial statements and the accounting treatment of the theory and other aspects of the preparation of important reforms.
2.1 inventory valuation changes in management practices
New accounting standards issued by the inventory valuation effect, cancel the original use of the "LIFO" all use "FIFO method." Because "LIFO" is not universal, or can not
truly reflect the situation of inventory turnover, resulting in physical flow of inventory cost flow and disjointed. "FIFO" and "LIFO" are for the issue of inventory valuation method. The issue here is essentially refers to the cost of inventory turnover. The so-called "FIFO method", it is the price of purchase of inventories using the first, and "LIFO", that enterprises in the accounting cost of inventories, the use of the most recent inventory purchase price,
2.2 cautious introduction of fair value measurement method
U.S. GAAP and IFRS are more focused on the application of fair value to reflect the relevance of accounting information. Fair value is defined in a fair deal, the parties to the transaction between knowledgeable, willing asset could be exchanged or a liability settled amount (usually price). The fair value of the transaction to some extent reflects the wishes of the parties, reflecting the principles of fair trade. In 1998 the British had "issued by non-monetary assets transaction", "debt restructuring" and other accounting standards introduced in the fair value of the earliest, due to appear in the actual operation of the fair value of many companies abuse the situation to manipulate profits, resulting in the 2001 revised accounting standards was canceled. New accounting standards in the "Financial Instruments Recognition and Measurement", "investment property", "Business Combinations", "non-monetary asset exchange" and "debt restructuring" and other accounting standards introduced in the fair value again. However, the practical application of new accounting standards in the fair value, or qualified to do a more cautious, only if they meet the conditions related to the fair value.
2.3 Asset impairment provision changes
As we all know, in corporate earnings rise, multi-impairment allowances; while earnings downturn, then impairment reversal, which is the means of adjusting the accounting profit. Its primary means in the larger annual profit, provision for asset impairment substantially increase the cost of the year, reducing the current year profits, subject to annual profit fell back again when the use of means of increasing profits. In the past, some of Britain's impairment of assets of listed companies even more than the net profit. However, changes in accounting standards, the listed companies are not reversed the preparation, in the future other companies can not do so. In accordance with the new accounting standards, "inventory impairment '," impairment of fixed assets "," impairment of construction in progress "and" impairment of intangible assets', beginning in 2007, after the provision can not be reversed, only in the disposal of the underlying asset, then the accounting treatment.
2.4 Accounting for debt restructuring rigorous and pragmatic
Original accounting standards require concessions from the creditors that the book value of debt restructuring and the payment in cash or non-cash assets transferred by the difference between the book value, the debtor shall be directly recognized as capital reserve, rather than as debt restructuring earnings. Impact of the new accounting rules, for creditor concessions, should be recognized as a gain on debt restructuring, profit and loss account people. If the transfer of non-cash assets is a way to restructure its debt, then the gain on debt restructuring should take non-cash assets to determine the fair value. Transfer of non-cash assets at fair value and book value difference between profit and loss account people.
2.5 Determination of the scope of consolidation are more concerned about substantive control
They are based on the consolidated financial statements of the basic theory has changed emphasis from theory into focus the parent entity theory. Parent can control all subsidiaries included in the scope of consolidation is required, without necessarily considering equity ratio. A subsidiary of the owner's equity is negative, as long as a going concern should also be included in the scope of consolidation. However, according to bankruptcy proceedings, have been declared to be a subsidiary of rectification; has been declared bankrupt subsidiary; non-going concern for the negative equity subsidiary; parent ceases to control the subsidiary; jointly controlled entities and other non- continuing operations or parent can not control the investee should be excluded from the scope of consolidation.
3 after the implementation of new accounting standards for business impact
The implementation of the new accounting standards, and promote the accelerated development of UK accounting career, and has had a significant impact on British companies.
3.1 inventory valuation manage change, affecting some industries and enterprises profit calculations
Inventory valuation methods issued by the choice of the impact of current profits, reflected in the stock price fluctuations, when the stock prices on the rise, the use of FIFO method will reduce the current cost to make profit for the period increased; when using LIFO France, will increase the current cost, the current profit. Conversely, when stock prices in a downward trend, the use of FIFO method will reduce the current profits; using LIFO will increase current profits. Visible, companies can take advantage of changes in inventory valuation method adjusted current profit levels. Abolition of the new accounting standards issued by the LIFO inventory valuation method, which enables enterprises to truly reflect the inventory turnover English Text Papers Database. The current inventory of all corporate expenses are reflected in an objective historical cost, enhance the comparability of accounting information, eliminating the human adjustment factor.
3.2 application of fair value, adjusted for corporate profits provide a certain amount of space
Measured at fair value, increasing the company's profits. For example, the listed company's short-term stock investment directly measured using the fair market value of that influence, to give the original cost or market value method, which gives enterprises to increase current profits; introduction of non-monetary asset exchange to be paid the fair value and related taxes As for the cost of the asset, the fair value and related taxes payable and swap out the difference between the book value of assets through profit or loss, but also increases the current profits. Thus, the fair value measurement, expanding corporate profits manipulate space in this case, some companies may still use tools to manipulate on corporate performance. Meanwhile, after using the fair value model, with more investment real estate firm performance affected by the impact of price changes in the property market, increasing the instability of corporate performance.
3.3 Reversal of impairment of assets was stopped, blocked through impairment provision to adjust the profits of vulnerability
In accordance with the new accounting standards, "inventory impairment", "impairment of fixed assets", "impairment of construction in progress" and "impairment of intangible assets" Beginning in 2007, a provision can not be reversed after, only in disposed of the related assets, then the accounting treatment. In this context, some of the previous year through the provision for decline in value to manipulate profits of the enterprise, and the urgent need to increase through the reversal of impairment provision of corporate profits in 2006, the old and new guidelines alternating reversal of some assets impairment. After the implementation of the new accounting standards, the use of impairment adjustment of profits of space will become smaller and smaller, the use of more and more difficult adjustment of profits accrued technique, only by strengthening business and management approaches to improve business performance.
3.4 Debt Restructuring new regulations will help those insolvent listed companies to increase their earnings per share
Original accounting rules, debt restructuring debt restructuring gains generated, no profit or loss only included in capital surplus. This is the use of debt restructuring profit manipulation behavior played a strong containment effect. The new accounting standards require that the creditor concessions to the interests of the debtor to obtain profit or loss directly into the income statement. Thus, some of the insolvent company, once the debt waiver affecting its revenue will be directly reflected in the income statement, thus greatly improve earnings per share, earnings per share and may even occur several times greater than the situation. This change in the new guidelines will lead to debt restructuring wave reproduction market, the use of debt restructuring for profit manipulation phenomenon repeats itself. Therefore, after the implementation of new accounting standards, still through the relevant institution building, to further standardize the behavior of debt restructuring.
3.5 Consolidated statements of changes in the basic theory, the consolidated financial statements reflect the company's true financial condition and operating results
The new scope of consolidation are more concerned about the determination of the substantive control, a subsidiary of the owner's equity is negative, as long as a going concern, but also the scope of consolidation taxable person, this change makes the parent must assume companies with negative equity debts and make some hidden or contingent liabilities appear. Where a subsidiary of the parent company's control should be included in the scope of consolidation, not to equity ratio as a yardstick. This change effectively prevent the separation of some companies use certain of its subsidiaries, reduced stake, will operate the business in a bad state excluded from the scope of consolidation, and thus the overall performance of enterprise groups whitewash. New accounting standards so that companies can not freely adjust the scope of consolidation, adjustment of profits, so that the consolidated financial statements give a true reflection of the parent company and all subsidiaries constituted by the enterprise group's financial position and operating results.
4 implementation of the new accounting standards of the major difficulties and obstacles
In the four years after the promulgation of the new accounting standards, there are still a considerable number of companies did not perform or selectively performed for many reasons, including by the old institutional constraints, backward accounting concepts and accounting factors, especially the development cycle, resulting in the full implementation of The new accounting standard also faces a number of difficulties and obstacles.
4.1 measured at fair value there is a certain degree of difficulty
Britain is currently still in the transition period, the market system is not perfect, the market economy is still in the developmental stage, transactions between enterprises is not very standardized, market competition is not sufficient, the fair value is difficult to form: First, the market is not active, imperfect, market level is not high, the lack of a fair price formation mechanism. Two parties to the transaction is the UK market, a related party relationship in many cases, these specific subject of consideration for a specific purpose, the transaction price is often unconscionability. Third, low public trust agency, the market lax enforcement, evaluation fraud is serious. Due to the current conditions of the lack of implementation of the fair value of the United Kingdom, the fair value measurement in practice there are some difficulties, thus triggering the accounting information distortion problem is inevitable.
4.2 Accounting professional quality and professional level restricts the ability to judge the implementation of new accounting standards
Currently, the new accounting standard for accounting business processing requirements often only a matter of principle, making the accounting discretion to increase, this principles-based accounting standards because of the lack of correspondence detailed accounting rules, accounting personnel need more and higher levels of professional judgment to solve specific accounting treatment. But in the long-term accounting practices, the British industry accounting system has been used to regulate accounting practices and accounting personnel accounting system only under clearly defined as a simple non-judgment. In this case, the accounting staff awareness of the lack of independent judgment and behavior, handling accounting matters copy or consult the leadership of the previous practice in accordance with the implementation, there is no initiative and enthusiasm. Accounting staff conducted an afterthought report, it is difficult in advance give an accurate prediction of uncertainty can not make a reasonable and accurate accounting matters of professional judgment. Also some accounting personnel narrow range of knowledge, knowledge structure is still at the previous level, knowledge, and knowledge structure is not timely updates and supplements, has been unable to meet the new situation of accounting requirements. In addition, the previous accounting system accounting policies, accounting estimates made a detailed selection of restrictive regulations, but also limits the scope of accounting personnel to make judgments English Text Papers Database. These are so good at accounting personnel at work using professional judgment to deal with complex accounting practices and accounting personnel professional judgment of the overall capacity is not high, limiting the implementation of new accounting standards.
4.3 Profit and excessive attention to the new accounting standards, as foreign
Concept of the new accounting standards through the income statement to the apparent change in the balance, investors pay more attention to the sustainable development capacity, emphasizing the balance sheet date reflects the true financial situation of enterprises, but not simple is the company's profit situation. Former accounting standards focus on practical statement, and more emphasis on profit targets. For a long time, the United Kingdom of the enterprise performance evaluation of the main indicators of profit instead of the future cash flows, the emphasis is past accounting information. When profits become a vital factor in evaluation of enterprise, the enterprise will naturally turn their attention to profit targets. Some companies may also use various means to manipulate profits, providing false accounting information. The new accounting standards focus on the balance sheet, in accordance with the accounting information provided focuses on forecasting the company's future cash flows. Both are two different perspectives effect, followed by the Accounting Standards are not the same. For example, concerns the income statement will be in accordance with the matching principle will not be able to match more than the cost of current income pushed to the balance sheet, so the start-up costs and other income for each accounting period and future costs associated with it as prepaid expenses or long-term Prepaid expenses are reflected in the balance sheet; concerns the balance sheet if it will focus on the application of the principle of relevance, such as the start-up costs can no future economic benefits to the enterprise, that the project does not meet the definition of assets removed from the balance sheet table, into the income statement. Current even in the enterprise performance evaluation on the supervision of listed companies, still has a tendency to emphasize profit targets, so that the new accounting standards is difficult to completely get balance concept implementation.
5 the effective implementation of the new accounting standards countermeasureshttp://www.ukassignment.org/cwgllw/
Although the implementation of the new accounting standards difficult, but the new accounting standards is really the only way for the development of the UK accounting profession. How to overcome the difficulties in the implementation process, the positive impact of the new accounting standards play to the maximum, which requires us in practice, constantly sum up and accumulate experience, and gradually improve accounting standards, the supporting mechanisms and other measures should also be established and improved.
5.1 earnestly work of linking the old and new accounting standards
First, it should improve the understanding of differences between the old and new accounting standards. New accounting standards system implementation, in addition to requirements of the whole society, including the management of listed companies and accounting personnel, external regulators and practitioners, as well as investors to understand and become familiar with the new accounting standards, but also the old and new accounting standards requires a clear differences. Second, efforts to implement the new accounting standards system a smooth transition. Convergence of old and new accounting standards is an important aspect is to identify which items need to be adjusted retrospectively, what items do not need to be adjusted retroactively. This problem uncoordinated good judgment of the majority of investors will cause confusion. Third, we must pay special attention to the new accounting standards related to the follow-up announcement. Countries, while in 2006 issued a new accounting standard on the basic principles, specific guidelines and instructions, but only learn these are not enough to pay attention to the Ministry of Finance issued a follow-up to keep a variety of explanations and announcements that are on the new Accounting Standards for further explanation, changes and additions.
5.2 pairs of fair value measurement must be made strict conditions
In the new system of accounting standards, the full introduction of fair value measurement attributes, which reflect the intrinsic value of true will undoubtedly have a greater positive effect. However, how to accurately determine the fair value, which is the process of implementing new accounting standards can not avoid the issue, but also the smooth implementation of the new accounting standards is one of the key factors. In the developed market conditions, the fair value relatively easy to identify, but in the case of the market is not sufficiently recognized at fair value is a challenge. Once the determination of fair value beneath "fair", the profit is likely to become a tool of manipulation. Therefore, in order to ensure the effective implementation of the new accounting standards, the determination of fair value must be made strict conditions, namely in the development of new standards operating instructions should be fully taken into account during the implementation of new accounting standards issues that may arise, adequate attention to the new accounting technical standards and economic consequences, the determination of fair value to make further detailed explanation in order to improve the operability of the new accounting standards, to prevent abuse of the fair value.
5.3 greatly improve the occupational level accounting personnel
The promulgation and implementation of new accounting standards marks the British Accounting Standards and International Accounting Standards coordination and convergence, but the overall look and the rapid development of economy on the UK accountancy professional standards required there is a gap with advanced countries in the international accounting compared to the level, the greater the gap in the implementation of the new accounting standards will be compromised. Britain in particular, the lack of international standards, knowledge of international accounting practice high-level accounting personnel. Professional accounting staff to improve the overall level, and enhance their professional judgment, has become the UK accounting profession is currently facing a major issue. Currently on the training of personnel in accounting, both through increased international accounting standards, foreign languages, network technology and other new teaching abstract improve CPA professional and ethical standards, to improve their independent, objective and impartial professional consciousness, so as soon as possible to the international level closer.
5.4 Improving the implementation of new accounting standards in the external environment
First, vigorously develop the capital market, at all levels should actively cultivate the market, especially the production market and secondary trading market, so that the fair value of the acquisition is more objective and reliable English Text Papers Database. Accounting information as a national development strategy is an integral part of, the need for reform. Second, improve the corporate governance structure and supporting regulations. To perfect the corporate governance structure of listed companies in financial behavior, and further enhance the company's management truthful, timely and full disclosure of financial information awareness. To amend and improve the existing Company Law and Securities Law and other relevant laws and regulations. Third, increase the implementation of the new accounting standards supervision. Implementation and monitoring of the implementation of the new accounting standards in place is the fundamental guarantee. A good system it is difficult to develop and implement the more difficult, but the implementation depends not only on the implementation itself, but also closely associated with the effective supervision. No good execution and supervision, even the best criterion does not make sense. To strengthen the financial and securities regulation, banking supervision, insurance supervision, audit and supervision of state-owned assets supervision and other departments of the coordination, the formation of regulatory efforts, strict supervision and inspection of the implementation of new standards issues that arise. Play CPA audit the implementation of the new accounting standards in the forensic role, with the supervision of intermediaries and social forces to promote the implementation of new accounting standards in place.
5.5 Follow IAS examine the latest trends, strengthen international exchanges and cooperation
August 2007 U.S. outbreak of the subprime mortgage crisis, the U.S. economy suffered a huge impact, but triggered a global financial market turmoil. After the outbreak of the subprime crisis, the fair value of a time become the target. Based on the subprime crisis arising on the fair value of the trust crisis, the International Accounting Standards Board (IASB), the American Accounting Standards Board (FASB) and other international accounting bodies to take a more cautious approach as to whether to cancel the fair value, return costs, etc. issues deeply discussed. Forced by the pressure of the parties, IASB has made on the fair value of the degree of compromise and the necessary changes, the U.S. Securities and Exchange Commission (SEC) is also active against non-market conditions and the non-rational use of fair value accounting treatment guidance issued , which is recognized at fair value, but also acknowledged that the measurement attribute to be perfect. England in the promotion of new accounting standards process, should pay close attention to IASB, FASB and other authoritative international organizations on accounting fair value accounting standards and other follow-up study dynamics, to strengthen its communication efforts, based on the UK's national conditions, drawing on research results, the current UK has promulgated new accounting standards and guidelines to be revised and improved, so that the new accounting standard accounting practices in guiding England to play an active role, to achieve convergence with international accounting standards.
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