Analysis of Changes in China's Debt Restructuring Standards

The objective of this paper is to explore why the Chinese Debt Restructuring Standards (Hereinafter referred to as DRS) in eight years between 1998 and 2006 appears three times change. The article analyzed and evaluated changes in 1998, 2001 and 2006 Debt Restructuring Standards. The results show that 1998 and 2006 DRS is basically convergence with International Accounting Standards, 2001 DRS is completely deviated from the International Accounting Standards, standard-setting process is a setback occurred. The reason is because the concept of standard-setting error, failed to recognize that non-market securities market regulation is the root causes of China's listed companies' earnings management, accounting standards are only a tool used by securities market regulators. Thus, 2001 DRS inappropriate played the role of securities market regulation.