ACCOUNTING STANDARDS IN CHINA

Accounting Standards in China

Accounting Standards in China

Deloitte Global Services Limited, (2010), Comparisons of IFRS to Local GAAPs, Retrieved from http://www.iasplus.com/country/compare.htm

In this particular article, the overview of the IASB, IFRS and FASB 141 has been given. The article states that in certain instances, IFRS and GAAP follow different approaches for the determination of specified amounts as well as how these amounts are acknowledged in financial statements and within the notes. Unlike GAAP which accepts the weighted-average methods LIFO, and FIFO, IFRS does not accept LIFO. It says when inventory is recorded on balance sheets; IFRS requires it to be reported at Net Realizable Value or the lower of historical cost or GAAP. The article has also shown the difference occurring in the measurement of plant, equipment, and property. Plant, equipment, and property are measured at cost originally. However, IFRS and GAAP have variations in how they have treated the assets. Under IFRS, PPE can be revaluing if there is a higher fair value; GAAP does not allow for any revaluation after recognition. It has given the various systems through which the IASB, IFRS and FASB differ from each other in standards.

This article contains the difference between the standards and how they are being used in various scenarios. The differences and similarities in each of them have been discussed in detail and the way these standards affects the economies of the countries.

Deloitte, (2006, August), China's New Accounting Standards A guide to IFRS 3 business combinations, Retrieved from http://www.deloitte.com/view/en_CN/cn/services/audit/ab75912aff1fb110VgnVCM100000ba42f00aRCRD.htm

In this particular article, the adoption of IASB standards by China and the impact it has created on the economy of China has been discussed in detail. It has covered the impact that the adoption of new standards and the removal of old standards has created on Chinese Economy. ...