International accounting in china Essay Example | Topics and Well Written Essays - 3750 words

International accounting in china - Essay Example1990 was a watershed yr wherein the PRC laid out the staple general objectives for the accounting system reform which consisted of the fundamental and specific accounting standards against the background of the international accounting practices catering to the nations requirements. ( invoice and Auditing Standards)The approach had the inclusion of a two-pronged atomic number 53 that had involved the makeover to an accounting system driven by market-economy from the existing planned economy accounting system. The first step led to the formation of the International Accounting Standard -- IAS based Basic Accounting Standards in the year 1992. This apart, a fresh package of uniform accounting system was being released for the purpose of the life-sustaining economic sectors. The second step will have a complete system of accounting standards which meant for businesses which would be built over the process of time legal transfer the Ch inese accounting system on the similar lines along with the global practices. The espousing of the Basic Accounting Standard in the year 1992 standardised the financial trading operations of all businesses, public enterprises, as well as governmental bodies and dealt with several issues and problems connected with the old system. (Accounting and Auditing Standards) Background of mainland Chinas economy (1980 to date market economy) The year 1980 had sterilise the conditions for the Second Revolution that marked the starting of the reforms in every arena of the Chinese society by the leaders who had ruled the country after monoamine oxidase Zedong. The leadership of the PRC had turned over to economic reforms as the main instrument in order to realize the extensive objective of the conditions of modernizations in cardinal principal sectors such as industry, agriculture, science and technology and defence and to make the nation join into the group of advanced industrial countries b y the beginning of the crude millennium. This reform approach was initiated during the 1980s and it has been credited generally to the initiatives as well as single-mindedness of the stalwart Deng Xiaoping, who was the most important leader in China after Mao Zedong under whose leadership had brought about comprehensive economic modernization as well as organizational reforms program. The progress of the industrial sector in China was being marked by the large-scale movement of the population towards the urban areas. The population had crossed over 1 billion by the year 1982 with an annual growth rate of about 1.4%. (The Peoples Republic of China V Reforms, 1980-88) With the passage of time, overseas experts were being called in for a helping hand in the process of modernization and the JVs with foreign capitalists and the MNCs had increased. However the growth as well as the successful harnessing of the technological skills, which is the main crux of the Four Modernisation had re quire the necessity of huge investment and further needed extra labour by the Chinese people. In a partial departure from the goal of self-reliance, China started taking