Research on Chinese Accounting Issues: A Review and Synthesis

Chan, Kam C.

doi:10.2753/ces1097-1475420105

Cited by 13 publications

(14 citation statements)

References 128 publications

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“…That, in turn, reduces investment” (Tweedie, 2006b, p. 6). While the adoption of IFRS FVA standards is highly desirable for emerging economies, the process of adopting and implementing these requirements is expected to be especially challenging for them because they lack many elements of a well‐functioning capital market that are needed in order to adopt and implement FVA successfully (Chen and Chan, 2009).…”

Section: Background and Prior Researchmentioning

confidence: 99%

“…The 2007GAAP does not allow income recognition on transfers from inventories and owner‐occupied property to investment property (divergence 5), the change in accounting for investment property from a fair value model to a cost model (divergence 7), or the reversal of impairment losses for assets within the scope of IAS36 (divergence 9). These prohibitions in the 2007GAAP are directed toward addressing the risk of earnings manipulation through the abuse of fair value, such as have occurred in China in the past via profit‐increasing asset reclassifications or revaluations (Yang et al , 2005; Jiang et al , 2008; Li, 2007; Chen and Chan, 2009).…”

Section: Adoption Of Fva (Rq1)mentioning

confidence: 99%

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Adaptability to fair value accounting in an emerging economy

Peng

Bewley

2010

Accounting, Auditing &Amp; Accountability Journal

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PurposeThis paper seeks to assess the feasibility and desirability of a major emerging economy adopting and implementing fair value accounting (FVA), as codified in the International Financial Reporting Standards (IFRS), by studying China's recent experience.Design/methodology/approachThe paper examines the extent of FVA adoption in China's new accounting standards (“2007GAAP”), reasons for differences from the International Accounting Standard Board's IFRS, and how 2007GAAP has been implemented in practice. Data are obtained from content analyses of IFRS and 2007GAAP FVA requirements, critical assessments of standard setters' official statements, and analyses of empirical evidence from official reports, media, and academic research.FindingsThe authors find a high degree of adoption of IFRS FVA standards in China's 2007GAAP for financial instruments, but many differences for non‐financial long‐term asset investments. Standard setters justify this divergence by fundamental characteristics of the Chinese environment. The resulting differences from IFRS in the 2007GAAP FVA standards, and in their implementation, challenge official claims of “substantial convergence” between 2007GAAP and IFRS. Hence, the benefits desired by Chinese regulators from adopting FVA and international accounting convergence to IFRS may not be realized.Research limitations/implicationsThe findings are derived from aggregated data in government reports. These findings can be extended in future research by examining specific implementation outcomes in company financial statements.Originality/valueThe paper contributes a timely critical examination of a major emerging economy's convergence with the controversial FVA requirements, which supports the IFRS's standing as a high quality set of accounting standards. The findings provide new insights into factors that can impede international accounting convergence in emerging economies.

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Section: Background and Prior Researchmentioning

confidence: 99%

Section: Adoption Of Fva (Rq1)mentioning

confidence: 99%

Adaptability to fair value accounting in an emerging economy

Peng

Bewley

2010

Accounting, Auditing &Amp; Accountability Journal

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“…China and Indonesia's whistle-blower protection laws are considered to be the most ineffective. The reasons for China's low ranking lies with weak legal obligations (Lu & Ma, 2017), law relating to internal control reporting and poor corporate governance (Chen & Chan, 2009) as well as high rate of retaliation faced by Chinese whistle-blowers and the incompetency of government authorities to act upon the retaliation in the past decade. Further, Indonesia has been ranked the lowest; the foremost reason highlighted by the experts was lack of or absence of any specific rule of whistle-blowing in Indonesian employment law.…”

Section: Discussionmentioning

confidence: 99%

Comparison of Whistle-blower Protection Mechanism of Select Countries

Sharma

Kanojia

Sachdeva

2018

Indian Journal of Corporate Governance

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Whistle-blower protection mechanisms (WPMs) play a critically significant role in combating corruption through ethics, corporate governance and statutes. This article examines the essence of whistle-blower mechanism existing in the developed and developing countries in order to unearth the legislative structure of countries supporting the whistle blower mechanism and pursuit of ethical conduct for sound corporate governance. The article attempts to identify, evaluate and analyse the attributes of whistle-blower mechanism across nations and finds that despite offsymmetric attributes, the mechanisms are asymmetric specific to the countries' corporate culture. It has also been found that most significant attribute of a sound whistle-blower mechanism is the level of protection provided to the whistleblowers followed by coverage of sectors, anonymity and the regulator of whistleblowing complaints in the country. The attributes vary widely across nations on the basis of coverage of sectors, anonymity withheld and the level of protection, with United States of America delivering the best protection to whistle-blowers trailed by Australian whistle-blower protection laws and then South Africa; India, China and Indonesia lag considerably behind in having a sound whistle-blower mechanism.

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“…Ho and Hung, 2009;Palomino, Renneboog and Zhang, 2009) or the different types of published information (e.g. Chen and Chan, 2009). However, most of these studies extrapolate results from markets analysis to individual investors without working directly with individual investors.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Shorter and easier is more useful: A longitudinal analysis of how financial report enforcement affects individual investors

Pascual‐Ezama

Paredes

Sánchez-Martín

et al. 2018

Journal of Behavioral and Experimental Economics

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According to the literature, individual investors rarely use Accounting and Financial Information (AFI), even though they do not give it a particularly low valuation when asked. This behavior increases the risk to lose investments. The main contribution of this paper is to propose a new AFI format: a one-page report that is short and easy to understand, as a complement to the long and complex traditional format in order to increase the usefulness of information for investors and to decrease investment risk. Two experiments provide evidence about the increased usefulness of AFI when using the new proposed format. More importantly, it seems that results in terms of profits also improve considerably in medium (one year) and long-term (four year) investments, in contrast to more modest profits of speculative investments. Furthermore, this difference occurs regardless of the investors' previous experience.

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Research on Chinese Accounting Issues: A Review and Synthesis

Cited by 13 publications

References 128 publications

Adaptability to fair value accounting in an emerging economy

Adaptability to fair value accounting in an emerging economy

Comparison of Whistle-blower Protection Mechanism of Select Countries

Shorter and easier is more useful: A longitudinal analysis of how financial report enforcement affects individual investors

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