Accounting standards in the People's Republic of China: Responding to economic reforms

Economic reforms in the People's Republic of China are continuing to move the Chinese economy toward a market mode. Much of China's output is now generated outside of the state sector. Privatization reforms include a share system of ownership, development of organized stock exchanges, and listing of shares in Chinese companies on Western exchanges. A revision of Chinese accounting standards is essential for the success of these reforms, and China's Ministry of Finance has begun a comprehensive revision of reporting requirements. Recent regulations are examined, differences between these regulations and Western reporting standards are identified, and an evaluation of China's progress toward internationally accepted norms is made.