ABSTRACT
China has a long history of accounting. In particular, ancient accounting in China was among the most sophisticated accounting systems in the early civilizations of the world. Chinese accounting, stemming from a highly centralized planned economy, differed substantially from its counterparts in most industrialized countries in the past. The Chinese economy has demonstrated remarkable growth resulting from an ambitious and enduring course of economic reform which commenced at the end of 1970s. The ideological influence is obviously one of the major factors causing Chinese accounting to depart substantially from accounting practices in most other countries prior to 1980. In light of strict government fiscal control, fund accounting dominated in Chinese accounting, whether in governmental or business accounting. The economic reforms have proceeded smoothly over the last 18 years and have brought about remarkable changes in the Chinese economy. The chapter also presents an overview on the key concepts discussed in this book.
