Title: Influence of New Accounting Code on Enterprise Financial Analysis Viewed from the Point of Credit Appraisal
Abstract: The new Enterprise Accounting Code issued by the Ministry of Finance in early 2006 has become an epoch-making reform of our accounting system.Under this new code,a series of new regulations regarding enterprise accounting settlement are and at the same time,users of enterprise information,especially banks in the capacity of creditors are faced with new challenge to decipher enterprise financial information according to the new tenet.This paper gives the background and highlights of this new code and elaborates from the perspective of banking credit appraisal on the difference between the new and old code/system and on the major impact on enterprise financial analysis.Meanwhile,the paper provides suggestions on how to apply and understand this new code at the time of credit appraisal such as using different standards to make financial analysis of different firms and differentiating data of different periods of an enterprise and reasonability of fair value application.
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: article
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