Recently, China has actively planned to establish the second stock market, which is also called the GEM, SME market or small cap stock market, alternative stock market and growth stock market. It corresponds to the main board market (the first board market). It refers to the new capital market outside the main board that provides financing channels for emerging companies and small and medium-sized enterprises. There is no doubt about the impact of the second board market on China's capital market. This paper mainly discusses the impact of the establishment of the second board market on the accounting field. 1、 Requirements for innovation of accounting information system 1. Change the traditional recognition method of accounting elements. The second board market mainly provides an effective financing channel for companies with high growth or development potential, especially high-tech companies. It is said that for enterprises listed on the second board, the proportion of the amount of intellectual property and non patented technology contributed by the sponsors in the registered capital of the company has increased from no more than 20% of the main board to 70%, which can even be determined according to the agreement of the sponsors, that is, the valuation of intangible assets can be very high. The FASB believes that "... intangible assets refer to economic resources without physical form, whose value is determined by their ownership and other future interests, but monetary resources (such as cash, accounts receivable and investment) are not considered as intangible assets." (Note: Accounting Theory, Tang Yunwei, Qian Fengsheng, Shanghai University of Finance and Economics Press, August 1997) As intangible assets, intellectual property rights, non patented technology, etc., have the characteristics of high uncertainty in the earnings they can bring to enterprises in the future. If a listed company is liquidated due to its poor development prospects, the identified intangible assets will be worthless. Therefore, enterprises in the second board market have higher risks, and the recognition of intangible assets should follow the principle of conservatism. 2. Accounting problems arising from trading activities unique to the second board market. For example, companies listed on the second board can break the boundaries between state-owned shares, legal person shares and individual shares, realize the full circulation of company shares, and reduce the participation of state-owned shares and legal person shares relative to the main board, so as to achieve the same rights and shares. The second board market provides the best channel for the spread of venture capital. The characteristics of venture capital are to obtain investment returns in the form of capital appreciation, and to maintain the cyclical flow of capital and investment activities. When the venture capital helps the company pass the risk period, it will be spread through the second board market to sell stocks, over-the-counter transactions, share repurchases, mergers, liquidation and other ways to obtain investment benefits and enter the next round of entrepreneurship. (Note: "Analysis of the Second Board Market and China's Development Strategy", Zhang Guihua, "Investment and Securities", 2000, Issue 2), which resulted in the accounting problem of capital withdrawal. In addition, due to the risk factors contained in the second board market, there is no doubt that the recognition and measurement of derivative financial instruments such as futures and options will develop rapidly. 3. Higher requirements are put forward for the disclosure of accounting information. The second board market has adopted a "lenient entry and strict control" approach for listed companies. Compared with the main board market, its listing threshold is significantly lower: the share capital subscribed by the sponsors before the issuance can be reduced to 20 million yuan (50 million yuan for the main board); It is not necessary to have a record of continuous profits in the past three years, but only required to have a transaction record of at least two years, reflecting its high growth to some extent; The number of shareholders with a par value of more than 1000 yuan should not be less than 200 (1000 required by the main board), which solved the problem of capital raising for enterprises in the middle and later stages of infancy and the early stage of industrialization in the entrepreneurial process, but also proposed a more strict information disclosure mechanism than the main board market, requiring more detailed disclosure of financial information of listed companies Frequently, ensure the authenticity, integrity, continuity, timeliness and fairness of information, and ensure the high transparency of the market. The information disclosed by a listed company includes (but is not limited to) a prospectus, a listing announcement, a share allotment prospectus, regular reports and interim reports. For example, regular reports can require enterprises to provide not only annual reports, interim reports, but also quarterly reports; Listed companies can also adopt online real-time reporting system to ensure timely disclosure of information through GEM website publishing information. Companies listed on the second board generally have certain growth potential, so their accounting reports can also provide some relevant information about future forward-looking, uncertain information and derivative financial instruments, information technology assets, human resource values, etc. Some projects can even use the fair value measurement model to provide useful information for the future, More detailed off balance sheet disclosure should be provided for the company's huge intangible assets. 2、 New Connotation of Enterprise Financing Activities Companies listed on the second board are also different from those listed on the main board in terms of corporate finance. As far as financing is concerned, the establishment of the second board market itself is based on the fact that some small and medium-sized enterprises with growth potential cannot meet the requirements of the main board listing, the starting point of product technology is high, the technical maturity, market acceptance and competitiveness are uncertain, and the investment risk is large, which makes it difficult to attract general financial investors. These small and medium-sized enterprises can raise funds in the second board market, and can ease the frequent fluctuations of the company's share price and improve the liquidity of shares after the introduction of the securities sponsor system and the market maker system. In the initial stage of the establishment of the second board market, more institutional investors such as banks, insurance companies, investment companies and so on can be cultivated, and retail investors who have no ability to resist risks should be appropriately restricted. Such enterprises should pay more attention to the impact of huge intangible assets on enterprise value and financial index evaluation system when conducting financial analysis. As far as dividend distribution is concerned, since such enterprises are mainly concentrated in high-tech industries with growth potential, such as communications, biopharmaceuticals, biochemical agriculture, network, etc., enterprises can give more consideration to retained profits and pay less cash dividends, so as to raise lower cost funds for enterprise development. In addition, the possible sharp fluctuation of the company's shares also puts forward higher constraints on the operators, who need to be more active to maintain the good performance of the enterprise, and even reduce the moral hazard of the entrusted agent. 3、 Urgently require certified public accountants to improve audit quality The limit on the rise and fall of the second board market will be expanded from 10% of the main board to more than 10%. This limit will be lifted when the market is mature and the T+O settlement system will be implemented; At the same time, in case of major problems, enterprises will face a strict exit and delisting mechanism. The second board listed companies are small in size, large in subject matter, and easy to be hyped or even manipulated. These all determine the huge potential risks for investors in entering the second board market. Therefore, the audit report of listed companies, as the main basis for investors to make decisions, plays an important role, Accordingly, higher requirements are put forward for certified public accountants to issue audit reports of listed companies than the main board market. The high-risk mechanism itself contains high professional risks for certified public accountants. In particular, the review of profit forecast reports should be more cautious, otherwise certified public accountants may encounter more litigation disputes. In a sense, this is also a positive external incentive factor for the development of the CPA industry in China, which can promote the significant improvement of the quality of the CPA audit business. The foreign second board market represented by NASDAQ of the United States has developed rapidly in recent years, and even led the new economic trend to a certain extent. The establishment of China's second board market is also an important means to promote the development of China's stock market, adjust the industrial structure and promote economic reform. The innovation and development of the capital market has brought new challenges to all fields of accounting, and has deepened and improved it constantly; On the contrary, it will also promote the prosperity of the capital market. The two complement each other and share weal and woe.