Bumpy road leading to internationalization: A review of accounting development China

Today's accounting in China is strikingly different from 20 years ago. The old accounting system China inherited from the former Soviet Union was designed to serve the centrally-controlled economy. Its main task was to report to the central government information required for planning and control purposes. The economic reform that changed the planned economy to a market-oriented economy created a demand for accounting information by capital providers and by business managers. Chinese accountants quickly looked to international accounting practice as the basis for reengineering the accounting system. Recently issued accounting standards closely resemble those developed in many market economies, although with some compromises, which are discussed.