ABSTRACT
Since 1978, China has reformed its economy from a planned economy into a planned-market economy and market economy, and accounting regulation has been changed accordingly. Most reforms occurred after China’s entry into the World Trade Organization (WTO) in 2001. The most important change for the accounting profession is the development of new accounting standards, which are mainly modeled after international practice, especially the International Accounting Standards (IASs), which later on were renamed the International Financial Reporting Standards (IFRSs). However, it has taken much longer time for China to adopt fair value accounting (FVA) into Chinese Accounting Standards (CASs). In this chapter we discuss the development of FVA in China through the infancy period (1984–1992), introduction period (1993–1997), period of limited adoption (1998–1999), period of suspension and wide discussion period (2000–2006), period of wide adoption (2007–2014) and IFRS 13 adoption period (2014 – present).
