Chinese Accounting Systems and Practices
Accounting Organizations and Socie#y, Vol. 13, No. 2, pp. 207-224, 1988.
Printed in Great Britain
0361-3682/88 $3.00+.00 PergamonJournals Ltd.
CHINESE ACCOUNTING SYSTEMS AND PRACTICES*
Z H O N G HUI ZHOU
Shanghai University o f Finance a n d E c o n o m i c s
Abstract
Recoguising that relatively little is known of Chinese accounting in the West, this article aims to provide an introduction to the role of accounting in China, its regulatory environment, Chinese accounting methods and recent attempts to improve the conceptual understanding of accounting in China. Throughout the description and analysis,attempts are made to relate the technical nature of Chinese accounting to its specific socio-economic context.
O w i n g to political, s o c i o - e c o n o m i c a n d cultural, as w e l l as linguistic, reasons, t h e r e is v e r y little a w a r e n e s s of C h i n e s e a c c o u n t i n g i n W e s t e r n c o u n t r i e s . Not o n l y has very little analysis of it a p p e a r e d in the l i t e r a t u r e b u t t h e r e also are few insights i n t o the basic a p p r o a c h e s u s e d a n d their rationales a n d c o n s e q u e n c e s . T h r e e w e l l - k n o w n international accounting textbooks do not ment i o n the area at all ( A r p a n & Radebaugh, 1981; Choi & Mueller, 1978; N o b e s & Parker, 1981 ). R e c o g n i s i n g this gap, the following d i s c u s s i o n aims to p r o v i d e a s u r v e y of the d e v e l o p m e n t of a c c o u n t i n g systems a n d practices, from after the P e o p l e ' s R e p u b l i c of C h i n a was f o u n d e d i n 1949 u n t i l the p r e s e n t day, w i t h p a r t i c u l a r emphasis b e i n g g i v e n to c u r r e n t a c c o u n t i n g approaches. C o n s i d e r a t i o n also is g i v e n to those features of a c c o u n t i n g that are characteristic of stateo w n e d e n t e r p r i s e s in China. More specifically the p a p e r will c o v e r the following
Printed in Great Britain
0361-3682/88 $3.00+.00 PergamonJournals Ltd.
CHINESE ACCOUNTING SYSTEMS AND PRACTICES*
Z H O N G HUI ZHOU
Shanghai University o f Finance a n d E c o n o m i c s
Abstract
Recoguising that relatively little is known of Chinese accounting in the West, this article aims to provide an introduction to the role of accounting in China, its regulatory environment, Chinese accounting methods and recent attempts to improve the conceptual understanding of accounting in China. Throughout the description and analysis,attempts are made to relate the technical nature of Chinese accounting to its specific socio-economic context.
O w i n g to political, s o c i o - e c o n o m i c a n d cultural, as w e l l as linguistic, reasons, t h e r e is v e r y little a w a r e n e s s of C h i n e s e a c c o u n t i n g i n W e s t e r n c o u n t r i e s . Not o n l y has very little analysis of it a p p e a r e d in the l i t e r a t u r e b u t t h e r e also are few insights i n t o the basic a p p r o a c h e s u s e d a n d their rationales a n d c o n s e q u e n c e s . T h r e e w e l l - k n o w n international accounting textbooks do not ment i o n the area at all ( A r p a n & Radebaugh, 1981; Choi & Mueller, 1978; N o b e s & Parker, 1981 ). R e c o g n i s i n g this gap, the following d i s c u s s i o n aims to p r o v i d e a s u r v e y of the d e v e l o p m e n t of a c c o u n t i n g systems a n d practices, from after the P e o p l e ' s R e p u b l i c of C h i n a was f o u n d e d i n 1949 u n t i l the p r e s e n t day, w i t h p a r t i c u l a r emphasis b e i n g g i v e n to c u r r e n t a c c o u n t i n g approaches. C o n s i d e r a t i o n also is g i v e n to those features of a c c o u n t i n g that are characteristic of stateo w n e d e n t e r p r i s e s in China. More specifically the p a p e r will c o v e r the following