On the Choice of the Accounting Policy of Chinese Listed Company

The related accounting standards, the incompleteness of the system and flexibility make the listed company has the space of choice of accounting policy. So it is important to recognize, on the one hand, that the listed company can choose more appropriate accounting policies according to their production and operation objectives and characteristics to ensure that the accounting information true and fair. On the other hand, the new accounting standards increase the possibility which conclude earnings management of listed companies,statements whitewash and even of profit manipulation by the use of choice of accounting policy. The paper analyses the problem of choice of accounting policy in Chinese listed companies, and provides some related polices.