Accounting systems and structure of China Essay

Accounting systems and structure of China - Essay ExampleThis is revealed through detailed comparison of the historical phenomena that occurred in Chinese score system over the years. Critical assessment of the effects of culture on development and transformation of Chinese accounting is discussed with a look at significant changes within institutions value system that supported accounting structures (Luft, 2007).The development of Chinese accounting system adopted a unused dimension in 1949 after the establishment of Peoples Republic of China by Chinese Communist troupe (Zhang, 2005). This marked the new contour of Chinese accounting where most of the financial models were adopted from the Soviet Union (Shalin, 1999). The development of the accounting system in China is divided into two limpid periods based on different legislative contents (Gvemli, 2001). The Chinese economic system before 1979 was planned on socialist platform, where the Central Government and the Party were the chief controllers of the economic system. After the 1979, the open door policy as well as the economic reform led towards the evolution of Chinas economic and legal system. The National Peoples Congress (NPC) issued several impartialitys including the PRC Accounting constabulary which marked the beginning of the development of Chinese accounting system. The reforms within the accounting system turned the Chinese accounting system into a capital market that was based on financial reporting system. This served the market-oriented providence in the year 1992 bringing the Chinese accounting system towards standardization as well as internationalization (Ashbaugh and Pincus, 2001).The first phase of accounting law was issued in 1985 by National Peoples Congress and later revised in 1993 and 1999. However, the Chinese government has used PRC Accounting Law as the basic law in China safeguarding accounting structures and system. The revised laws in 1999