Accounting in China: How Successful Has China Been in Its Bid to Harmonise Its Gaap with IAS? Rui Hua Jiang, Lana Liu and Simon Hussain Report on Their Research into Its "Accounting System for Business Enterprises"

By Jiang, Rui Hua; Liu, Lana et al. | Financial Management (UK), September 2008 | Go to article overview

Accounting in China: How Successful Has China Been in Its Bid to Harmonise Its Gaap with IAS? Rui Hua Jiang, Lana Liu and Simon Hussain Report on Their Research into Its "Accounting System for Business Enterprises"


Jiang, Rui Hua, Liu, Lana, Hussain, Simon, Financial Management (UK)


Because its economic boom has generated significant interest from international investors and financial institutions over the past decade or more, China has been trying to change its accounting system from one that's appropriate to a state-controlled economy to one that's more influenced by the needs of investors. In effect, this has entailed moving its Gaap towards international accounting standards (IAS).

In November 2002 China's assistant finance minister, Feng Shuping, gave a speech on this topic at a meeting of standard-setters in Hong Kong. "China has always referred to IAS in the process of formulating its own accounting standards," she said. "We have replaced the accounting model adopted under the planned economy by a set of standards that is more suitable for an evolving-market economy, aiming at convergence with IAS."

Corporate earnings represent the single most important accounting item for current and prospective investors in Chinese businesses--a factor that Shuping acknowledged in the same speech. "Because of the importance of measures of profit for market regulation, the formulation of accounting standards in China focuses on the income statement instead of the balance sheet," she said.

Studies suggest that China's efforts to harmonise its standards with IAS during the nineties were unsuccessful: companies that were required to report under both Chinese Gaap and IAS saw a persistent differential between the two sets of earnings figures throughout the decade. In an attempt to improve the harmonisation process, China introduced the "accounting system for business enterprises" in January 2001.

To determine whether the new system has succeeded in its aim, our research focused on the reconciliation statements of annual reports published on the web site of the Shanghai Stock Exchange for all 51 "B-share" listed Chinese companies between 2000 and 2003.

[GRAPHIC OMITTED]

The previous studies found that, in by far the most cases, earnings reported under Chinese Gaap throughout the nineties were greater than those reported under IAS. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Accounting in China: How Successful Has China Been in Its Bid to Harmonise Its Gaap with IAS? Rui Hua Jiang, Lana Liu and Simon Hussain Report on Their Research into Its "Accounting System for Business Enterprises"
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.