Business Commons^™

A View On The Process Of Accounting Standard Setting In The People’S Republic Of China, Y. Zhang, J. Andrew, H. W. Collier

Henry Collier

This paper is a discussion of how the People’s Republic of China is attempting to revise accounting standards. Historically, China’s accounting standards were dominated by ‘management’ accounting and compliance and achievement of goals and objectives established by central planning authority. As China seeks Foreign Direct Investment in formerly State Owned Enterprises, competitive pressures demand a change of emphasis in financial reporting. Much of the Western world is adapting IFRS for financial reporting. IFRS seems to privilege western dialogue in the adoption and acceptance of standards if PRC wishes to access the world wide capital markets. Consistency and comparability of financial …