IMPACT OF THE NEW ACCOUNTING STANDARDS ON LISTED COMPANY

Abstract

The new accounting standards have been put into effect first in listed companies. It introduces new concepts as well as different processing methods which absolutely will have a great effect on listed companies’ performance. This effect includes three directions: (a) it will affect items on listed companies’ income statement in a direct way;(b) it will affect investors’ judgements of listed companies’ performance; (c) it will introduce some other methods of controlling earnings of managers. This paper analyzes these effects and at last comes to the conclusion that the new accounting standards is much more precise than the last one in formulation, and covers more to details, which will restricts accounting control of earnings more effectively.
Key words: The new accounting standards, Performance of listed companies, Financial indicators, Control of earnings