A comparison between the FASB conceptual framework and the draft of accounting standards of the People's Republic of China

In November 1990, in response to tremendous changes in its socioeconomic environment, the People's Republic of China released Enterprise Accounting Standards No. 1—Fundamental Standards (the Draft). This paper highlights major similarities and disparities of accounting standards between the Dra...

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Bibliographic Details
Published in:Journal of international accounting, auditing & taxation auditing & taxation, 1994, Vol.3 (1), p.71-83
Main Authors: Yang, David C., Kao, Chien-Rong
Format: Article
Language:English
Subjects:
Accounting
Accounting policies
Comparative analysis
Conservatism
Financial accounting standards
Financial reporting
GAAP
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Summary:In November 1990, in response to tremendous changes in its socioeconomic environment, the People's Republic of China released Enterprise Accounting Standards No. 1—Fundamental Standards (the Draft). This paper highlights major similarities and disparities of accounting standards between the Draft and the U.S. Financial Accounting Standards Board (FASB) conceptual framework concerning accounting assumptions, basic principles, implementation constraints and accounting elements. The format of financial statements, additional disclosure requirements and characteristics of the Draft are presented. The analysis of the Draft shows that conservatism plays an ambiguous role in the current accounting reform in the People's Republic of China but substantially affects relevant accounting standards.
ISSN:1061-9518
1879-1603
DOI:10.1016/1061-9518(94)90007-8