Problems of accounting reform in the People's Republic of China

Abstract

The promulgation of the Enterprise Accounting Standard (EAS) in 1992 signified a major accomplishment in unifying accounting practices in the People's Republic of China (PRC) and harmonizing them with international practices. This article identifies and analyzes the problems encountered in the PRC since the implementation of the EAS in July 1993. These problems result from the accounting regulatory framework itself and the incongruity betweem the new accounting regulations and the prevailing socioeconomic conditions. Some possible solutions are discussed.