New accounting rules in the pipeline
26 June 2006
As of Jan. 1, 2007, China will introduce new accounting and auditing standards in line with global expectations, state media reported. Officials from the China Securities Regulatory Commission said they are now investigating the impact the new measures will have on the country's capital markets, but plans are to implement new reporting standards. The goal is to improve the credibility of the Chinese capital markets by elevating the quality of information disclosed by listed firms. Substandard accounting has dealt blows to a number of listed companies in the past decade. The Ministry of Finance made the standards public in February.