New accounting standards in China may impact stability of financial reporting.
The study looked at how new accounting standards in China affect the quality of financial information for listed companies. The new standards focus more on accuracy and fairness in reporting, rather than being overly conservative. By using fair values, the new guidelines may reduce the stability of accounting practices. However, the study found that factors like corporate governance and market conditions can also impact income conservatism. Overall, the research suggests that the new accounting standards prioritize truth and justice in financial reporting.