XIBMS – CHINESE EVOLVING ACCOUNTING SYSTEM

XIBMS – CHINESE EVOLVING ACCOUNTING SYSTEM

            Attracted by its rapid transformation from a socialist planned economy into a market economy, economic annual growth rate of around 12 per cent, and a population in excess of 1.2 billion, Western firms over the past 10 years have favored China as a site for foreign direct investment.  Most see China as an emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US before 2010, if current growth projections hold true.

            The Chinese government sees foreign direct investment as a primary engine of China’s economic growth.  To encourage such investment, the government has offered generous tax incentives to foreign firms that invest in China, either on their own or in a joint venture with a local enterprise.  These tax incentives include a two – year exemption from corporate income tax following an investment, plus a further three years during which taxes are paid at only 50 per cent of the standard tax rate.  Such incentives when coupled with the promise of China’s vast internal market have made the country a prime site for investment by Western firms.  However, once established in China, many Western firms find themselves struggling to comply with the complex and often obtuse nature of China’s rapidly evolving accounting system.

            Accounting in China has traditionally been rooted in information gathering and compliance reporting designed to measure the government’s production and tax goals.  The Chinese system was based on the old Soviet system, which had little to do with profit or accounting systems created to report financial positions or the results of foreign operations.

            Although the system is changing rapidly, many problems associated with the old system still remain.

            One problem for investors is a severe shortage of accountants, financial managers, and auditors in China, especially those experienced with market economy transactions and international accounting practices.  As of 1995, there were only 25,000 accountants in china, far short of the hundreds of thousands that will be needed if China continues on its path towards becoming a market economy.  Chinese enterprises, including equity and cooperative joint ventures with foreign firms, must be audited by Chinese accounting firms, which are regulated by the state.  Traditionally, many experienced auditors have audited only state-owned enterprises, working through the local province or city authorities and the state audit bureau to report to the government entity overseeing the audited firm.  In response to the shortage of accountants schooled in the principles of private sector accounting, several large international auditing firms have established joint ventures with emerging Chinese accounting and auditing firms to bridge the growing need for international accounting, tax and securities expertise.

 

            A further problem concerns the somewhat halting evolution of China’s emerging accounting standards.  Current thinking is that China won’t simply adopt the international accounting standards specified by the IASC, nor will it use the generally accepted accounting principles of any particular country as its mode.  Rather, accounting standards in China are expected to evolve in a rather piecemeal fashion, with the Chinese adopting a few standards as they are studied and deemed appropriate for Chinese circumstances.

            In the meantime, current Chinese accounting principles present difficult problems for Western firms.  For example, the former Chinese accounting system didn’t need to accrue unrealized losses.  In an economy where shortages were the norm, if a state-owned company didn’t sell its inventory right away, it could store it and use it for some other purpose later.  Similarly, accounting principles assumed the state always paid its debts – eventually.  Thus, Chinese enterprises don’t generally provide for lower-of-cost or market inventory adjustments or the creation of allowance for bad debts, both of which are standard practices in the West.

Questions:

1. What factors have shaped the accounting system currently in use in China?
2. What problem does the accounting system, currently in sue in China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC standards, but instead to standards that the Chinese governments deem appropriate to China’s “Special situation”, how might this affect foreign firms with operations in China ?

XIBMS – CHINESE EVOLVING ACCOUNTING SYSTEM

XIBMS Institute

XIBMS Answer sheets, academic support

XIBMS assignment help, student assistance

XIBMS Institute solutions

Xavier mba answer sheets

Xibms mba case study answers

Xibms case study answers

Xavier emba answer sheets

Xavier emba case study papers

Xibms gms answer sheets

Xavier gms case study papers

Xavier advance diploma answer sheets

Xibms advance diploma case study answer sheets

Xibms dms case study answers

Xavier dms case study papers

At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at XIBMS Institute (Xavier Institute of Business Management Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses.

Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by XIBMS Institute (Xavier Institute of Business Management Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum.

Whether in MBA, EMBA, GMS, DMS, or any other programs offered at XIBMS Institute (Xavier Institute of Business Management Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery, ensuring students receive the necessary assistance to excel academically.

We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of XIBMS Institute (Xavier Institute of Business Management Studies).

XIBMS Answer Sheets

Customized Answer Solutions

MBA Assignment Solutions

EMBA Case Study Solutions

GMS Answer Sheets

DMS Assignment Help

Professional Writing Assistance

Tailored Academic Solutions

Specialized XIBMS Support

Academic Writing Services

Reliable XIBMS Assistance

Get expert assistance with your XIBMS Institute (Xavier Institute of Business Management Studies) assignments and answer sheets from our professional academic writing services.

Our team specializes in supporting students with XIBMS Institute (Xavier Institute of Business Management Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions.

Ace, with our tailored assistance, your XIBMS Institute exams, offering precise guidance and accurate answer sheet preparation.

Seeking reliable help for your XIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support.

Score high in your XIBMS Institute (Xavier Institute of Business Management Studies) assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets.

 

XIBMS Project Report Writing Services

XAVIER Customized Project Reports

XIBMS Institute Project Support

XIBMS Professional Project Report Assistance

Quality Project Documentation

XIBMS Expert Project Report Writers

Comprehensive Project Analysis

Structured Project Report Services

XAVIER Detailed Project Documentation

XIBMS Project Evaluation Support

Custom Project Report Formats

XAVIER Project Research and Analysis

MBA/EMBA/GMS/DMS Project Reports

 

XIBMS Institute (Xavier Institute of Business Management Studies) assignments, solved papers, and study materials are available through our academic writing services.

Seeking assistance with XIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs.

Our specialized academic writing support simplifies access to XIBMS Institute (Xavier Institute of Business Management Studies) question papers and model answers.

Need expert guidance for your XIBMS Institute assessments? Our service offers comprehensive solutions for students seeking assistance.

Our academic writing services ensure precise and high-quality answers for XIBMS Institute assignments, aiding students in their educational journey.

 

Academic writing professionals play a crucial role in assisting students with their university assignments, striving to achieve several key goals:

Quality Assurance: Their primary aim is to deliver high-quality content that meets academic standards and fulfills the requirements of the university assignments. This involves thorough research, proper structuring, and adherence to guidelines provided by the educational institution.

Originality and Plagiarism-Free Content: Professionals in this field emphasize originality by creating authentic content free from plagiarism. To maintain academic integrity, they ensure that all information is appropriately cited and referenced.

Meeting Deadlines: Timely submission is a significant goal for academic writing professionals. They work within specified deadlines to provide students with completed assignments, enabling them to submit their work punctually.

Clear and Coherent Communication: Professionals strive to convey complex ideas in a clear, coherent, and academically appropriate manner. They focus on effective communication to ensure the content is easily understandable to the target audience.

Supporting Learning and Comprehension: Beyond completing assignments, academic writing professionals aim to support students\’ learning by providing explanations, analysis, and additional resources that help students grasp the subject matter more comprehensively.

Customization and Client Satisfaction: They tailor their services to individual student needs, providing personalized assistance and ensuring client satisfaction by addressing specific requirements and preferences.

Continuous Improvement: Academic writing professionals continuously update their knowledge base, research techniques, and writing skills to adapt to evolving academic standards and deliver the best possible support to students.