Analysis on New Accounting Standards:Reliability-relevance Trade-offs
Yanchao Wang · Economic management journal · 2009
Based on Lawrence and McAllister(1994),this paper analyses the semantic content of new accounting standards sentence by sentence,and reveal the underlying meaning by the application of contingency theory. This paper discusses issues on the accounting standards tradeoffs and expects to contribute to establish conceptual framework in China. Foundation of accounting standards should depend on both conceptual framework and accounting environment. By word and semantic analysis,we read all the accounting standards,then detect tradeoffs of the accounting information quality.In conclusion,relevance is emphasized compared withreliability,although the result keep insignificant . The result shows that new accounting standards have taken tradeoff depend on contingency factors and conceptual framework.