China Revises Accounting RulesIn a historical step to promote financial transparency in the market and stave off financial risks, China is now drafting a new set of accounting rules to replace its current accounting system, a Ministry of Finance official revealed Tuesday, December 5."The new comprehensive rules will be applied to all the enterprises present in the Chinese market, including both domestic enterprises and foreign-funded enterprises, said Chen Yugui, deputy director of the Accounting Department under the Ministry of Finance. The new system will consist of three separate sets of rules: accounting rules for general industrial and commercial enterprises, accounting rules for financial enterprises and accounting rules for smaller enterprises. The new rules will represent a great improvement in the current system, Chen said, noting because the current system applies different rules to different industries, which often results in incompatibility between economic sectors. |
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