China accounting standards Essay Example | Topics and Well Written Essays - 750 words

mainland mainland China be standards - Essay ExampleThe write up standards determine the functioning for preparation of financial statements which produces reading like business revenues, expenditure, net income, assets, liabilities and the wealth of the stakeholders. Overview Chinese Accounting standards China has its own system of method of accounting standards that is maintained in the land of China. The accounting standards of China are still basic standards, specific standards and application guidance. There are thirty-eight specific standards that are followed in the Chinese accounting standards. During the socialist period, the government of China was the sole owner of the industry. The accounting standards of China are unequaled as it developed during the socialist regime and is tailor made to the objectives of the Chinese economy. The Chinese accounting standards are intended to focus less on the information of profit and loss. The accounting standards differ from t he Hesperian accounting standards in terms of providing guideline on information on inventory of the industries. In comparability to the western accounting standards, the Chinese accounting standards are intended less towards accounting of debt of a corporation (Coulaud,Schulz andDebilliers, 2008). ... Moreover, the Chinese economy underwent reforms and achieved rapid progress in industrial development. This created the need of revising the accounting standards of China in order to create a competitive ground with the internationalistic accounting standards. In 2006, the government of China passed a new accounting law in joint consultation with the ministry of finance, the international accounting standards delegation and the representative from the Chinese economy. With a view towards the emerging scenario of integration of international trade with the Chinese trade, the accounting standards of China adopted several standards recommended by the International accounting standards board. In order to align the information on the business performance of China through financial statements and reports and to allow a platform for comparison of the Chinese business with the top listed companies all over the world, the accounting standards of China adopted several features of the international accounting standards. The financial inform procedure was replaced by the international financial reporting standards. The financial reporting criteria helped to compare the financial statements of the Chinese company with the rest of the world which added a significant feature in the era of globalization (Avery,Zhu andCai, 2009). The alignment of the financial reporting standards adopted by China to the International accounting standards is about 95%. Impacts of changes in Chinese accounting standards The changes in the accounting standards of China for preparation of financial statements and accounts have created major impacts on the ways on financial accounting and generati ng annual reports of the Chinese companies. His has in like manner paved the path of