China accounting over the years
Accounting is the process of measuring, processing, and sharing financial and other information about businesses and corporations, Today, the practice of accounting is a crucial element of business that is as important in China as it is in the rest of the world. With modern day accounting practices having been slowly but surely adopted in China since its embracing of Deng Xiaoping’s proposed reformation of economic policies, the switch from a socialist economy to that of a market economy helped usher China into the new age of business.
China has its own accounting rules which is known as the Chinese Accounting Standards (CAS). Despite substantial convergence between CAS and the International Financial Reporting Standards (IFRS), a standard that most western corporate owners are applying at current stage, practical implementation and interpretation differences remain.
The CAS framework is based on two standards:
- Accounting Standards for Business Enterprises (ASBEs); and
- Accounting Standards for Small Business Enterprises (ASSBEs).
To understand how CAS framework is established, you need to have a general idea of how China Accounting was developed and changed. Join us as we take a look back at the humble beginnings of accounting in China in our timeline info graphic that will help to showcase its evolution over the years...
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Accounting in China has come a long way indeed, and today the old Chinese Accounting Standards (CAS) have been largely replaced by the International Financial Reporting Standards (IFRS) that are adopted by the rest of the world, with the convergence between the new Chinese Accounting Standards and the IFRS now at almost 90–95%.
