comparison of accouting princi

I. OVERVIEW Today's accounting in China is strikingly different from 30 years ago. In western countries, there appeared to have been relatively little interest in the accounting system used in China before the 1970s (Zhou 1988). The language barrier and differences in culture may have contributed to this lack of interest, but other factors include the low level of participation and involvement in the world economy in the pre-reform communist regime. Before China changed its policy to …

…the following similarity and differences. A. China In China, accounting period is required to be the calendar year concerning financial reporting. A typical financial reporting and disclosure include the following parts: 1. Balance sheet 2. Income statement 3. Statement of changes in financial position (or cash flow statement) 4. Notes including accounting policies, and some supporting schedules 5. Comparative financial statements are required 6. Consolidated financial statements are required in case of 50% percent or more ownership except for enterprises not s