Chapter 6 - Comparative accounting. In this chapter, the learning objectives are: Describe some aspects of the environment in which accounting operates in five countries: China, Germany, Japan, Mexico, and the United Kingdom; explain the nature of the accounting profession in the selected countries; discuss the mechanisms in place for regulating accounting and financial reporting in the selected countries;. | Chapter 6: Comparative Accounting Chapter Topics Accounting environment, profession, regulation, practices/principles and differences in national accounting practices with IFRS in: China Germany Japan Mexico United Kingdom 6-2 Learning Objectives Describe some aspects of the environment in which accounting operates in five countries: China, Germany, Japan, Mexico, and the United Kingdom Explain the nature of the accounting profession in the selected countries Discuss the mechanisms in place for regulating accounting and financial reporting in the selected countries Examine some of the accounting principles and practices used by companies in these countries 6-3 Learning Objectives Identify the areas where national accounting practices in these countries differ from International Financial Reporting Standards (IFRS) 6-4 PEOPLE’S REPUBLIC OF CHINA (PRC) Background World’s largest country with population of billion(2008) People’s Republic of China (PRC) established in 1949 Politically: Communist, one-party state Economically: Until the 1980s, all firms state-owned Currently in transformation to socialist market economy World’s second largest economy (in terms of GDP) and fastest growing among large economies, and is largest recipient of FDI 6-5 5 PEOPLE’S REPUBLIC OF CHINA (PRC) Background First securities regulations adopted in1984 Two major stock exchanges: Shanghai and Shenzhen established in1990 and1991 Government controls capital market via: Chinese Security Regulatory Commission (CSRC) similar to SEC Domestic companies list four types of shares: A, B, C, H Market characterized by speculation, high share turnover 6-6 6 PEOPLE’S REPUBLIC OF CHINA (PRC) Accounting Profession Profession less prestigious than in Accounting and auditing have developed separately Chinese Institute of Certified Public Accountants (CICPA) and Chinese Association of Certified Practicing Auditors (CACPA) merged in1998 Economic reform and the large number of joint ventures . | Chapter 6: Comparative Accounting Chapter Topics Accounting environment, profession, regulation, practices/principles and differences in national accounting practices with IFRS in: China Germany Japan Mexico United Kingdom 6-2 Learning Objectives Describe some aspects of the environment in which accounting operates in five countries: China, Germany, Japan, Mexico, and the United Kingdom Explain the nature of the accounting profession in the selected countries Discuss the mechanisms in place for regulating accounting and financial reporting in the selected countries Examine some of the accounting principles and practices used by companies in these countries 6-3 Learning Objectives Identify the areas where national accounting practices in these countries differ from International Financial Reporting Standards (IFRS) 6-4 PEOPLE’S REPUBLIC OF CHINA (PRC) Background World’s largest country with population of billion(2008) People’s Republic of China (PRC) established in 1949 .
