The Economic Consequences of Accounting Policy: the Evolving Paths and Strategies ——Analysis Based on the Case of Huatai Insurance Company

Accounting is not only a tool for measuring economic variables, but also one of mechanisms of allocating economic resources which serves for distributing interest among interestrelated parties. Therefore the selection and implementation of accounting policies have direct or indirect economic consequences. This paper analyzes the economic consequences of accounting policy and their sources with Huatai Insurance Company, and develops an analysis framework on the basic rules of economic consequences from accounting policy. In addition, we provide some strategies for accounting research, accounting rule setting, utilization of accounting information and improvement of relevant laws.