Chinese Accounting Standards For Business Enterprises

1827 Words Dec 18th, 2015 8 Pages
Introduction
As of November 24, 2015 China’s reporting standards are created by the Accounting Regulatory Department, Ministry of Finance, People’s Republic of China. Its role is to be responsible for the setting of the accounting standards in China for business enterprises (IFRS, 2015). As IFRS is stretching worldwide, China has made a public commitment to support global accounting standards and move towards the IFRS as those standards. It is also important to note that the Chinese Accounting Standards for Business Enterprises (ASBEs) was recognized in a joint statement back in 2005. A memorandum was signed by a representative of China and a member of the IASB in 2005 supporting the view that the new accounting standards were convergent with IFRS. A revised and improved version will continue to be on the rise to meet IFRS standards in completing convergence. Very recently, an announcement was made that there are up and coming steps being taken for internationally-oriented Chinese companies with steps for an advance use of the IFRS standards in China. It states that it will also identify the vision of Chinese Accounting Standards becoming fully integrated with IFRS and is encouraging continued co-operation between IASB and Chinese stakeholders (IFRS, 2015).
IFRS is not currently required in China for domestic companies or SME’s but all Chinese companies who utilize security trades in the public market are currently required to use ASBEs. However, if Securities are traded on…
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