China Accelerates Reform of Accounting System

BEIJING, August 9 (Xinhua) -- China is accelerating the reform of its accounting system in order to improve the quality of work and the transparency of accounting information, Beijing-based China Securities said today.

The report quoted Feng Shuping, head of the Department of Accounting of the Ministry of Finance as saying that China is amending its accounting law to improve the supervision of accountants and further clarify legal responsibility for accounts.

The amendment makes fraudulent accounting a punishable crime, Feng said.
She added that the government has issued nine codes for enterprise accounting, and 33 more will be issued by the year 2003.

The government has also drafted plans for the continued education and training of accountants to improve their quality, she said.

The official confirmed that the Chinese government is taking a positive attitude towards bringing its accounting system closer to the international practices.

But she reiterated that many aspects of China's economy are unique to the country, which will inevitably produce an accounting system unique to China.