The measurement methods of assets in Chinese listed companies
Date
2006
Authors
Liu, Jinghui
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Conference paper
Citation
Statement of Responsibility
Conference Name
International Conference on Accounting and Finance in Transition (4th : 2006 : Adelaide, S. Aust.)
ICAFT 2006
ICAFT 2006
Abstract
The purpose of this paper is to measure the alternative accounting policies regarding asset in
Chinese Initial Public Offering (IPO) companies. Therefore, the divergences of the
measurement methods of asset disclosure in annual reports are investigated for listed
companies with domestic and foreign shareholders. These methods are divided into six subcategories:
foreign currency translation, receivables, inventories, investments, fixed assets and
intangible assets. The inclusion of each item in the index is based on the reviews of previous
studies on measurement and corporate disclosure, the studies of prior corporate disclosure
practices in Chinese listed companies and relevant rules and legislations. The findings of this
study indicates that China, with a tradition of a unified accounting system, still employs
uniform accounting method as the major approach to financial reporting within the centralised
planning process. The concept of ‘prudent’ has been accepted by standard setters and policy
makers since last decade that evidenced from accounting measurement and earnings reporting
practices to resolve the disputes, for foreign and domestic investors have complained that the
reliability and comparability of accounting information in China was doubtful. The
accounting reform modelled on western reporting systems has some significant influence on
the accounting framework and disclosure practices in China.
School/Discipline
Business School