Government Role in the Internationalization of Accounting Standards in China

It is only 30 years since China transformed its economic system from planned economy to market economy. So it is more difficult for China to realize the internationalization of accounting standards than the developed capitalist countries. China has to challenge and overcome its own special obstacles, and needs strong support and overall planning from its government. This paper mainly explains strategic measures used by Chinese government to internationalize the accounting standards, analyzes major problems we are currently facing and explores the role Chinese government should play in this important process. Though problems discussed above need to be solved by different sectors working together, what government do is of the most importance: Firstly, the government must set mid and long term goals and plans as the process of international compliance of accounting standards needs long term international cooperation; Secondly, taking the national conditions into account, further improve and coordinate laws, regulations, taxation, accounting, etc.; Thirdly, strengthen the international cooperation in a more extensive extent so as to realize the equal effects of China’s accounting standards in the world; Lastly, keep on the regulation making of CPA and conclude the internal accounting control systems as the international compliance of accounting standards needs CPA systems. Besides, the internationalization of accounting standards makes it an indispensible part to further educate the present ten million or so accounting personnel.