China to introduce new accounting rules
(Xinhua)
Updated: 2006-06-24 11:11
China will introduce new accounting and auditing standards that are similar
in many ways to global ones in listed firms as of January 1 next year, officials
with securities regulatory commission said on Friday.
The introduction of the standards, as Wang Jun, vice-minister of finance said
recently, represents an important step China has made in global convergence of
accounting standards.
The ministry made public the standards in February this year.
Guo Xudong, chief of Accounting Section of the China Securities Regulatory
Commission, said the commission will move to investigate the impact the new
standards will have on the country's capital market.
The commission will also revise some regulations to make information
disclosure by listed firms consistent with the new standards, said Guo.
The implementation of the standards will improve the quality of the
information disclosed by listed firms, which will improve the international
credibility of the Chinese capital market.
In the past decade, a number of listed firms were punished by the commission
for substandard accounting.
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