Exploring "China's Partial Overcapacity" and Domestic Demand Insufficiency from an Accounting Perspective

Abstract

This paper analyzes the reasons for weak consumer demand and insufficient investment demand, pointing out that slow growth of income level, lack of consumer confidence, and poor investment environment are the main factors leading to insufficient domestic demand, and discusses the identification and treatment of overcapacity from the perspective of accounting information, emphasizing the role of accounting standards in the recognition of losses, impairment of assets, and profit allocation. At the same time, this paper analyzes the impact of accounting policies on domestic demand, including tax policies, changes in accounting standards and transparency of financial reporting, etc., and in response to these issues, it proposes strategies such as adjusting relevant macro policies, taking countermeasures at the enterprise level, improving the relevant accounting system arrangements, and strengthening the supervision and risk prevention mechanism, etc., and concludes that industrial structural adjustment and policy support are the key to solving the problems of overcapacity and insufficient domestic demand. It is also believed that industrial structure adjustment and policy support are the key to solve the problems of overcapacity and domestic demand shortage.