Chinese accounting system has a rapid changed during the past decades, whatever it changes, the identity of Chinese accounting form is obviously shown to the world.
Professionalism vs. Statutory Control
“Even after the recent reforms ···accounting practices remain that reflect the state-controlled nature of the Chinese economy”（Adhikari,1995,Accounting for China） In China, accounting law is established by The Department of Administration of Accounting within the Ministry of Finance, accounting profession plays a weak role in this process and this no evidence prove it shown its social status. Like all Statutory control reform, accounting standards are one part of law, someone who dare to make false account will be prosecuted (Blake.J,2000,Joint ventures in China). Uniformity vs. Flexibility
It is not surprise to see that Chinese accounting system apply uniformity as a measurement to organize the accounting standards and regulations. In this way, all the companies and business cooperation have to use the same standardized accounting methods, they all have to report to the central authorities about their business operating status, and those data will be use as a significant evidence to manage national economy.( Chan.M.W.L & Rotenberg. W, 1999, 37-53) There is no doubt that professional judgment is definitely not to be allowed in China. However, uniformity is also aligned with Statutory Control System; it means all accounting record has to be in this level. Conservatism vs. Optimism
When it comes to accounting measurement practice, it is obviously to see China now using the conservatism measurement. It is a tendency for conservatism measurement practices to defer to recognize the increase of asset and net income. However, the process of recognize of liabilities and the decrease of profit will be accelerated. As a result, financial ratio and earnings measurement in conservatism are tending to be lower than the countries which using optimism...
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