chapter  15
24 Pages

Chinese accounting reform: reasons and effects

WithR. W. Scapens, Z. Hao

Of all the recent reforms of accounting in China, the 'Financial Guidelines for Business Enterprises' and the 'Accounting Standards for Business Enterprises', introduced in December 1992 and effective from 1 July 1993, will probably have the most farreaching influence on Chinese finance and accountancy. These developments have followed more than ten years of economic reform and openness (to the outside world), and have been described as a 'revolution' in accounting reform (Yang 1993). Thus, the year 1993 may well represent the start of a new era in Chinese accounting history.