Contracting Structure and Accounting Information——A Study on the Determinant Elements of Accounting Standards

摘要

This paper goes over the literatures from the perspective of accounting standards setting and accounting standards enforcement. Based on the incomplete contract theory, we build up an asset measurement model and apply it to analyze and test some measurement choices listed in accounting standards. Our conclusion shows that if residual rights in contracts can be enforced by marketing mechanism, the accounting is able to report the information by market price or fair value, on the other hand, if residual rights cannot be enforced by marketing mechanism, the accounting is not able to report the information by market price or fair value, when historical cost measurement or amortized cost being a better choice. Without considering liquidity factors and testing every concrete accounting standard in our model, we should improve our studies continuously.