Accounting In China Essay

1. Introduction †¢ China’s rapid economic growth in the past two decades has amazed the rest of the world. †¢ With China’s accession to the WTO, business activities with and within China will further expand. †¢ China fully understands that a sound financial reporting system plays a key role in the process of economic development. †¢ The Chinese Ministry of Finance (MoF), who has the responsibility for regulating accounting matters in China, has set itself the objectives of fostering investors’ confidence in financial information, increase transparency of financial reporting, and harmonize with International Financial Reporting Standards (IFRS), so as to reduce the costs of raising capital by enterprises and alleviate the risk of financial crisis. 2. History Of Development †¢ The old accounting and regulations were designed to meet the needs of a planned economy, and therefore focused on whether the production goals of state-owned enterprises and their financial and costs plans were being met. †¢ Accordingly, the objectives of accounting and performance measurement some twenty years ago were significantly different from the financial reporting objectives in a modern market oriented economy. †¢ Significant accounting reforms were undertaken in the past two decades due to several factors such as: âž ¢ Since China opened its door to foreign investments in 1979, the rapid growth of its economy, international trade and securities markets has shaped new objectives for financial reporting. âž ¢ State-owned enterprises now look a lot like profit-oriented businesses, and managers and other users need reliable and relevant financial information on which to base decisions about the efficient allocation of capital. âž ¢ At the same time, china has reached out to the international community to form joint ventures and gain greater access to the latest technologies and the world’s capital markets. See more: Homelessness as a social problem Essay †¢ In the 1980s, the MoF issued the first set of accounting regulation, which was formulated by reference to international accounting practice, for joint ventures in China. †¢ In 1992, due to rapid development of the Chinese securities market, the accounting System for Experimental Joint Stock Limited Enterprises was promulgated by the MoF in order to standardised accounting practice and disclosures by listed companies. This System was subsequently replaced by the Accounting System for Joint Stock Limited Enterprises (JSLE) in 1998. †¢ The 1992 regulation moved away from the traditional fund-based Soviet accounting model and incorporated many common Western accounting practices. †¢ In the same year, the MoF promulgated the Accounting Regulations for Foreign Investment Enterprises (FIE), the Accounting Regulations for Share Enterprises. †¢ In 1993 the Basic Accounting Standard for Business Enterprises came into force. It imposes some basic rules (e.g. that double entry bookkeeping must be used, that a cash or funds statement must be included in the financial statements, and that consolidated financial statements must be provided where appropriate); set out a conceptual framework of China accounting and make some detailed rules of financial reporting. †¢ The conceptual framework introduced on a broader scope new accounting concepts and essential elements of financial statements that were in many respects based on international practices. †¢ The conceptual framework aspects of the regulation are reasonably close to US and IASC precedents. †¢ However, these pronouncements were still found to have essential differences with international practice such as limited disclosure of financial information for the users to understand the results and financial position of the reporting enterprise. †¢ Another difference is that the regulation does not specifically identify the primary user or purpose of financial statements. Instead, a hierarchy of users includes the government, banks, the public and an enterprise’s own management. †¢ This is very different from the US or IASB which emphasis on financial decision making by outside investors. †¢ In addition, the ASBE is based on historical cost without the revaluation allowed in IASB or UK rules or the increasing use of fair value in IASB/US/UK rules. †¢ Furthermore, ‘substance over form’ is not established as a principle in China. 3. The New Accounting Standards And Accounting System (Development after 1993). †¢ In 1993, with funding from the World Bank (US$2.6 million), the MoF engaged Deloitte Touchee Tohmatsu (DTT) as consultants to develop a body of Chinese Accounting Standards (CAS) broadly in line with accounting and financial reporting practices used internationally. †¢ Exposure Drafts on about 30 standards have since been published between 1994 and 1996, and they were generally closely in line with the standards of the IASC. †¢ In 1997, the first standard was issued. It is on disclosure of relationships and transactions with related parties. †¢ In the same year, China joined the IASC, and became an official observer at Board meetings. †¢ In October 1998, an Accounting Standards Committee (CASC) was founded within China’s MoF. It comprises academics and members of accounting firms as well as government experts. †¢ In 1998, the Ministry of Finance issued the Accounting System for Joint Stock Limited Enterprises (JSLE) to replace the accounting System for Experimental joint Stock Limited Enterprises in order to standardise accounting practice and disclosures by listed companies. †¢ In 2000, DTT was reappointed as consultants for the second phase of the project. †¢ China accounting has achieved remarkable progress in unifying its accounting practices since Year 2001. †¢ In the same year, MoF issued a new comprehensive Accounting System for Business Enterprise (the ‘System’). The new System replaced the Accounting System for JSLE form January 1, 2002. †¢ In other words, all JSLE (including all listed enterprise) and FIE are now required to follow one unified new System. The system introduces the concept of substance over form and extends the requirement for consideration to all assets. †¢ The MoF plans to ultimately require all medium-size and large enterprises (other than financial enterprises) to adopt the new System, and announced its expectation that state-owned enterprise will adopt the new system over time. †¢ When fully implemented, the new System will replace the numerous inconsistent industry accounting regulations, enabling the financial statements of different types of enterprises to become more comparable. 4. Impact Of The New Systems On FIE †¢ Before adopting the new System, FIE’s financial statements which were prepared in accordance with the Accounting Regulation for FIE could not properly reflect the enterprise’s actual financial position and operating results, the enterprise had to make numerous adjustments when they compile financial statements under overseas accounting standards, such as IAS and US GAAP. †¢ The process was time consuming and imposed additional cost of investment to the foreign investors. †¢ After the adoption of the new System, the differences between FIE’s financial statements under PRC GAAP and those prepared in accordance with international accounting practices will reduce further, thereby enabling the foreign investors to assess the performance of their investments more efficiently. 5. China Accounting Standards Convergence With IFRS †¢ The importance and acceptance of IFRS has increased significantly over the past few years. †¢ While actively pursuing convergence with IFRS, the MoF necessarily has to ensure that accounting standards appropriately address the national circumstances that exist during this transitional period in the economy. âž ¢ A very significant portion of the economy is dominated by state owned enterprises. Even after enterprises are restructured into joint stock enterprise and branched out from the government structure, functional or regional government that remain stakeholders still exert significant influences over the enterprises and their trading partners and their transactions. âž ¢ Free markets are not sufficiently developed in many areas. âž ¢ Financial statements are multi-functional, serving not only the needs of the investors but also other interested parties including the State for supervisory and management purposes. âž ¢ Enterprises and professional intermediaries such as auditors and valuers are at a developing stage. During this transitional period, accounting standards must be realistically implementable by the preparers and auditors of financial statements. †¢ On 16 February 2006, the Chinese Ministry of Finance and the International Accounting Standards Board formally announced that Chinese Accounting Standards (CAS) will converge with International Financial Reporting Standards (IFRS) on 1 January 2007. †¢ Converging CAS with IFRS is one of many successful initiatives undertaken by the PRC government over the past global economy. †¢ Investors, analysts, regulators and other interested parties in recent years have been increasingly demanding more consistent and reliable financial reporting from companies around the world. †¢ The adoption and consistent application of accounting standards based on IFRS principles is widely viewed as a commitment to transparent financial reporting by these constituents. Transparent financial reporting is considered as the foundation of investor confidence. †¢ The process of convergence has been started way back in November 2005 when several meetings had been held between MoF and board members of IASB. †¢ The process of convergence will involve integrating the IFRS principles into CAS and will result in the amendment of all existing standards and the issuance of an additional 22 Specific standards. †¢ While the revised CAS will not reflect a literal translation of IFRS, their scope will include all IFRS principles. In additional, they will contain interpretive guidance to address the accounting for specific types of transaction (e.g. combinations of companies under common control) and industry accounting issues (e.g. extraction of petroleum and natural gas). †¢ The new CAS will comprise 1 basic standard and 38 specific standards. †¢ The revised CAS will first be applied to listed companies from 1 January 2007 and gradually applied to other types of entities. †¢ There will be differences between the revised CAS and IFRS to reflect unique circumstances in China. †¢ These differences, among other things, relate to: a. A prohibition of the reversal of asset impairment once it has been made; b. The accounting for certain government grants; c. Related party disclosures between State owned enterprises that have no direct investment relationship. 6. Challenges faced by China in converging with IFRS. †¢ The effect of changing accounting policies involves some efforts such as: âž ¢ Re-designing the financial reporting process to ensure that management has sufficient reliable financial information with which to prepare financial statements that comply with the standards, particularly in regards to the increased levels of disclosure required, and properly supports critical accounting estimates and judgements. âž ¢ The people involved in the financial reporting process will need to develop a new expertise and competency in applying revised CAS. âž ¢ Developing new accounting policy manual; integrating new CAS internal management reporting (budgeting, forecasting, performance measurement) and external reporting (financial, statutory, investor) into daily operations across the organization. âž ¢ Implementing ongoing and sustainable processes such as valuations of share options and derivatives, impairment testing hedge documentation and effectiveness testing, etc. âž ¢ Require identification of new data requirements due to financial statements and disclosure requirements. âž ¢ Train the head office and business units of the new reporting requirements. âž ¢ Provide training to finance and also non-finance staff including key management (e.g. finance, treasury, tax, human resource and sales) on new CAS principles and new reporting requirements. THE NEW SYSTEM OF CHINESE ACCOUNTING STANDARDS Key features and impact of the new accounting standards 1. The new accounting standards represent convergence with International financial Reporting Standards. †¢ Most of the newly issued standards and revised standards make reference to the equivalent IFRS and adopt the principles and treatments similar to its counterpart. †¢ As a result, the financial statements prepared in accordance with the New Accounting Standards will be more comparable with those prepared in accordance with IFRS. †¢ Overseas investors and users of financial statements will understand the financial statements of Chinese enterprise better and the cost of re-preparing financial statements for Chinese enterprises when getting overseas listing will be reduced. 2. The requirement of fair value measurement †¢ Under the new accounting standards, debt restructuring and no-monetary transactions will be measured at fair value and gains that meet certain criteria will be recognized in the income statement. †¢ Whereas before the revision, those transactions were carried at book value and any gains arising from those transactions were not allowed to be recognized. †¢ In practice, the determination of fair values may not be easy for many entities and various valuation techniques are required. 3. Specify accounting treatments for important accounting issues such as business combinations and consolidated financial statement. †¢ In the past, there was neither formal accounting standards nor comprehensive and detailed guidelines in the area of business combinations and consolidated financial statements. †¢ As a result, accounting treatments for similar business combination transactions may have varied across different enterprises causing much confusion and inconsistency. †¢ Therefore, the issuance of the standards on â€Å"Business Combination† and â€Å"Consolidated Financial statement† will provide comprehensive and more authoritative provisions and guidelines on these important accounting issues. 4. Specify treatments on new accounting issues and certain previously off-balance-sheet items will be recorded in the balance sheet †¢ Derivative financial instruments will be recognized on the balance sheet instead of only being disclosed in the notes to the financial statements. †¢ All shares and share options granted to employees to be measured at fair value and expensed in the income statement. 5. Standards relevant to important specialized industries †¢ The New Accounting Standards will include a number of standards that are relevant to those specialized industries. †¢ For example, the four standards on â€Å"Financial Instruments† will have an impact on accounting practices in various financial institutions. †¢ The standards on â€Å"Direct Insurance Contract† and â€Å"Re-insurance Contracts† will affect players in the insurance sectors. †¢ The â€Å"Extraction of Petroleum and Natural Gas† and â€Å"Biological Assets† are standards that are issued specifically for enterprises operating in the petroleum and gas industry and agriculture industry respectively. 6. Impairment of Assets †¢ The previous accounting regulations in China allow the reversal of impairment under certain circumstances. †¢ However, under the new standard, it specifies that any recognized impairment loss for fixed assets and intangible assets cannot be reversed in future accounting periods. †¢ The restriction on impairment loss reversal does not apply to inventories, trade receivables and bank loans. 7. More detailed requirements on disclosure †¢ The new standards provide users of financial statements with more relevant and transparent information, which will facilitate their economic decision-making. †¢ For instances, in respect of accounting policies and accounting estimates, the basis for the determination of significant accounting policies and accounting estimates is required to be disclosed. †¢ In relation to financial instruments, a detailed disclosure on the enterprise’s financial risk exposure is now required. 8. Transitional adjustments †¢ The New Accounting Standards were applicable to listed companies effective from 1 January 2007. †¢ The MOF has issued transitional provisions which are included in the standard on â€Å"First Time Adoption of Accounting Standards for Business Enterprises†. †¢ The standard requires that at the date of transaction, an entity should reclassify, recognize and measure all assets, liabilities and owners’ equity in accordance with the New Accounting Standards and prepare an opening balance sheet. †¢ These transitional provisions may reduce the workload and complexities for preparers’ adoption of the New Accounting Standards.

Kevin Carey: Why Do You Think They Are Called For-Profit Colleges

Dr. Keel English 1301 10 September 2012 Journal-Carey 1. Kevin Carey researches higher education matters for a group called Education Sector. Carey has done many publications for big time newspapers such as The Washington Post, and the Los Angeles Times. He was the Indiana State budget director, and currently teaches education policy at Johns Hopkins University. 2. Carey discusses the crunching debt for-profit schools bring to their students and their practically worthless degrees in his article, â€Å"Why Do You Think They’re Called for-Profit Colleges†.Carey starts off by practically taking away the educational integrity of these for-profit â€Å"higher† education organizations. He basically describes them as get rich quick sales pitches to investors, with profit mainly relying on student government funding (Carey 217). Carey is relentless on exposing the fraud for-profits carry with them. He says† Without over-sight, the combination of government subsidies and financially unsophisticated consumers guarantees outright fraud† (Carey 217). Also, Carey states that these for-profit colleges offer virtually illegitimate degrees due to low standard.He says, â€Å"there’s no doubt that the worst for-profits are ruthlessly exploiting the commodified college degree† (Carey 220). With these statements C arey presents a very clear opposition against for-profit schools, he is very clear in illustrating his argument against them.3. Kevin Carey’s purpose in his article is to clearly expose the illegitimacy of for-profit colleges.4. This article has added to the disliking I have had for for-profit colleges such as University of Phoenix, and DeVry. Personally Carey’s evidence has reinforced my assumptions that these organizations are fraudulent and do not offer decent door-openers for careers.5. This can be applied to the business world because it is a perfect example of how greed from investing can take away the integrity of things. For-profit higher education should not be a publicly traded entity while they rip off students with illegitimate programs, while only about worrying profits for investors.1. The main problem with for profit is their ridiculously high prices and debt they cause. A positive aspect of for-profits is the way they deliver their course work to studen ts utilizing technology.This article illustrates a negative view on for-profit colleges and it does a fine job in supporting its reasoning.2. Carey focuses on the individual Michael Clifford, as a firsthand example to show how a get rich quick investment â€Å"entrepreneurial† attitude can dilute the integrity and benefits of a true college education.5. In today’s economy a higher education is clearly worth the price, if the student can afford it. There are millions of employees with decades of experience being told to go back to school, and get a degree.The economy has surpassed the industry standard for experience, replacing it with possession of a degree. I am currently attending a community college, and plan on transferring to a university next year, where I will study Accounting. Everything I am doing in my higher education will benefit me firsthand when I enter the workforce. In my opinion college life is much more accommodating than public high school education. College offers a new level of independence, it provides students with an environment to help nurture self improvement, while preparing them for America’s workforce.

Marriage and Religion Research Paper Example | Topics and Well Written Essays - 1750 words

Marriage and Religion - Research Paper Example Couples of different religion such as Catholic and Jewish had to face several challenges. The church does not support and encourage the practice of marriage between catholic and Jewish. The traditional perspective on Jewish marriage was contractual bond between man and woman which is commanded by god. Catholics people believe that marriage is the gift which is in the hand of gods. Both religion vividly follow the practices entertain in the church. This research paper will discuss about the marriages that does not work if people support different religions such as Catholic and Jewish. Until recent decades, it is really uncommon for people to marry of different religion backgrounds. But in this generation, people are marrying outside the faith and religion. There are several challenges that arise due to interfaith marriages. Over the last decade in United States, more than 45% of marriages are of different religion. Interfaith couples i.e. couples of different religion are often tend to marry each other regardless of the practical religion problems. The rate of divorce of marriage of different religion is very high. According to the survey in the year 2001, reveals that 23% of the Catholics and 27% of Jewish are married to people of different religion identification. It is also stated that different religion identification marriage are maximum between 26 to 35 years. 58% of the marriages are between 26 and 35. The ethical norms and values of certain religion are hampered due to interfaith marriages. In the year 2011, it has been surveys that different religion mar riages can lead to divorce or separated. It has been found that three times the number of mixed religion marriages are divorced than that of same religion marriages. Divorce rate of couple who are religious is 20%. Mixed religion marriages can eventually has disagreement over the raising of children. There can be certain disagreement

Screening the Business Idea and Business Model Assignment

Screening the Business Idea and Business Model - Assignment Example The most fascinating feature of this restaurant service is that unlike any other hamburger restaurant, the Redneck’s Gourmet will cook burgers right in front of the customer. In addition, customers are encouraged to order their burger and demand whatever they want mixed in the meat. The well decorated surroundings, a full bar, and a stage for live music will be some other notable attractions of this restaurant. There will be uniqueness even in staff dress code. Even though it is mandatory for the staff to wear uniforms, they are permitted to personalize the uniforms to an extent. In short, all the settings and facilities of this restaurant service will be based on redneck lifestyle and values. Today there are not many places to sit down and eat a hamburger other than fast food facilities. Although many other restaurants have burgers on their menu, it is not the major focus of their menu. Most restaurants offer burgers only as a substitute product if their primary meals are not much demanded by customers. By giving primary emphasis to burgers, Redneck’s Gourmet will have a clear edge over fast food places and other similar facilities. Unlike a fast food restaurant, the Redneck’s Gourmet can promise customers great atmosphere to sit down and enjoy their meals. In addition, as Dupas (2011) points out, today’s people are increasingly concerned about their health and the dreadful repercussions of consuming foods prepared in dirty kitchens and surroundings. Hence, many people are reluctant to visit restaurants. In this context, Redneck’s Gourmet burgers can better serve the needs of health-conscious customers because burgers are prepared right in fro nt of the customer in this restaurant. Thus, no customer needs to worry whether or not his/her burger was cooked in a clean kitchen as he/she can witness the entire cooking process from start to finish.

Moral distress Coursework Example | Topics and Well Written Essays - 250 words

Moral distress - Coursework Example Solving the morally distressing situation would demand asking about it to the relevant people such as the close family members and the hospital administration. After asking, affirm about the method and what it would entail in detail which would lead to the third model of assessing the situation by the hospital administration and the family members as well. Assessment would also be carried out by the patient herself. If all the parties come up with a unanimous positive response, I would move to the last stage of acting where the action to end her suffering would commence (The Ethics Work Group, 2004). The 4A’s model enables assessment of the risks and benefits involved in a morally distressing situation as well as enabling assessment of the situation by the external barriers causing the distress. This leads to taking the appropriate and though about action that would end the moral distress. The Ethics Work Group. (2004).The 4A’s to Rise above Moral Distress. The American Association of Critical-Care Nurses. Retrieved from

Law of obligation learning portfolio Essay Example | Topics and Well Written Essays - 2000 words

Law of obligation learning portfolio - Essay Example 1996). The law of obligation under the Roman law was expressed in the form of contracts. There were different forms of contract which were all incorporated with religious elements due to the fact that Roman law evolved through and under the college of pontiffs and priestly caste. Jus jurandnm was the most solemn of all oaths, and should the one who made the promise fail to perform his duty, he will be then in danger of receiving penalty in the form of excommunication. The less harsh of these oaths was the sponsio on which the promisor would pour out the libation of wine while calling upon gods to witness upon his promise. Over time the religious elements have gone and the power of the State prevailed, this has become the formal stipulatio which was done in formal question and answer. The earliest Roman contract now was formed called the nexum. It was done by means of money and scale, in the presence of five witnesses and librepens who held the official scale. The transaction will take plac e by means of symbolic sale, on which during this moment there will be a dialogue between the promisor and the promisee. Without these symbolisms the contract will be regarded as void. This was a loan and the debtor was in serious consequences should he fail to follow through his debt (Page W.H. 1919). A formal contract then became part of Roman law where one party would perform a specific action and the other party would be expected to fulfill an obligation. These actions should well up from the mutual intention of both parties to enter into an agreement. There were four forms of these contracts: (1) the mutuum which means a transfer of property to the debtor to be repaid by the debtor in kind to the creditor (2) the commodatum which was a gratuitous loan, (3) the depositum which was the transfer of property for the purpose of gratuitous safekeeping and last (4) the pignus or pledge, this was done by transferring a property by the debtor to

Symbiotic Relationship Essay Example | Topics and Well Written Essays - 750 words

Symbiotic Relationship - Essay Example Essentially, this relationship puts emphasis on giving equal effort, since the long-term survival of the above relation leads to both parties surveillance. Coen narrates that ascoglossan placida is herbivorous algae and weakens the abundance and existence of placida on codium. Hitherto, here the placida is an example of a crustacean that protects the codium from predation, hence, symbiotic relation. Eventually this leads to more production of the algae since it reduces the predation of placida on the algae. Ultimately, the algae get protection from placida. Notably, he argues that even though ascoglossanas predates on the seaweeds, molluscan acts as a conservative factor and undergoes stimulation by the non-food algae. Amusingly, polyps cannot move away from their home, which is limestone, and so they feed stagnantly during the night. Zooxanthellae are water algae that live in the tissues of polyps, and usually use the available sunlight to make food. Surprisingly, the shape of coral s results in their surrounding (Coen, 1988). Strong or even weak waves can deform corals’ shape. Eventually, the rising of the coral forms a lagoon, which will fall forming a toll, which becomes molluscan shelter. Glynn, in his book entitled â€Å"Herbivore by crabs and the control of algal epibionts on Caribbean host corals† is herein concerned with how corals provided shelter to crustaceans. That epiphytes provides shelter by giving a cool and moist microhabitat in the presence of low tides in the sea. As much as providing of shelter is met, this epiphyte has many branches that provide security to the small slugs, hence, safe from predation (Glynn, 1983).Anemones, which are sea inhabitants, do relate with the corals. Anemone fishes relate symbiotically with the clownfish whereby the tentacles of the anemone make a good refuge with the fishes in conjunction with its eggs. On the other hand, anemone fishes behave as scare parasites, like butterfly fishes, from their ho st (Lassig, 1977). Moreover, bryozoans usually encrust the reefs by cementing the reefs using their branching colonies on the skeleton of the reefs. A variety of worms, like the polychaetes and the flatworms, find a good home in the reef. Furthermore, crevices in the reef make a critical home for flatworms. Ecosystems consisting of reefs form a diverse environment that inhibits different species collectively. Similarly, Stachowicz puts emphasis on the same shelter relationship and briefs that the ascoglossan’s gets the benefit of refuge and so gets shelter from the epiphytes (Stachowicz, 1999). Stier notes that red snapping shrimps, alphes armatus and the bartholomea annulata have a good symbiotic nature whereby the bartholomea annulata although habitats in shallow water mutual relationship is essential. Since the b.annulata have powerful jaws, they tend to scare the predators against cnidarians, while on the other hand the cnidarians provide shelter to shrimps. Apparently, a well-known example of the crustaceans is the shrimps and the crabs. The mechanism that the crustacean has for protection over its predators is as below: skeleton, which is very hard and has the name carapace, is primarily the organism’s body armor. This keeps away hungry predators that have the ability to bite on them. Periodically, moult phase is the only time that crustacean may be exposable to attack. Lobsters and crabs have a set of gigantic pincers that protect them from predators. In addition, the lobster has a tough biting claw that usually protects it from other animals’ attack, human being inclusive. Stachowicz, J.J narrates the relationship of the Alpheus lotteni with the corals pocillopora damicornis. Symbiosis relationship here is evident as