Accounting Standards Of The Commercial Banks In China. On Internationalization

Accounting, as an international business language, has played anincreasing role in the economic globalization. With the climbingrequirements by the participants in the market, accounting is now servingas an important medium in completing the transactions. Consequently, thequality of accounting information (the transparency and comparability inparticular) determines the quality of market transaction to a large extent,affecting the efficient allocation of global resources. Nevertheless, the comparability and use are substantially restricteddue to the great variances among the accounting norms of differentcountries all over the world. Thus, it is an international trend to reduce oreven eliminate "language barrier" by setting international accountingnorms, and advancing the internationalization of accounting norms. Currently, China has devoted itself to the internationalization ofaccounting norms, exercising great influences over the reform anddevelopment of Chinese banking industry. Since China's entry into WTOin particular, the internationalization of accounting norm of bank industryhas come into no doubt. Therefore, it is of great practical meaning tostudy the internationalization of commercial bank accounting norm. Thisthesis focuses on the internationalization of commercial bank accountingnorm, analyzing the existing problems occurred in the internationalizationprocess, and furthermore, proposing strategies to facilitate theinternationalization process. The thesis is composed of four chapters. Chapter One Study on Fundamental Issues of Accounting Standard Starting from defining accounting norms, this thesis comparesChinese accounting norms with the international ones, classifyingaccounting standards from accounting systems. Thereafter, it analyzes theeffects of accounting environment on accounting norms and confirms itsimportance. However, with the progresses and developments of socialistmarket economy in China, Chinese accounting norms are supposed tokeep up the pace with international ones. Chapter Two Comparison and Analysis of Commercial Banks AtHome and Abroad Modern commercial banks are organizations running money credit,characterized by high liabilities and high risks. Unlike accounting ofaverage industrial and commercial organizations, banking accountingemphasizes more on prudence of accounting principles and transparencyof accounting information. The comparison between commercial bankaccounting norms in China with international practices has stated the gapclearly. For the time being, listed commercial banks and non-listedcommercial banks are subject to different accounting norms. Listedcommercial banks have done a better job in information disclosurecompared with non-listed commercial bank, yet it fails to meet theinternational requirements. Chapter Three Significance of Internationalization of CommercialBank Accounting Norms Based on Chapter Two, this part proposes the necessity for Chinesecommercial banks to improve the accounting norms after the entry intoWTO, which is not only required by Chinese reforming and opening-up,but also is in the interests of Chinese banking industry. Chapter Four Consideration on the Internationalization of ChineseCommercial Bank Accounting Norm Although the accounting norm is oriented at internationalization,there is no matched environment yet due to the transitional economy andundeveloped market. Therefore, based on Chinese reality, Chineseeconomic environment should be taken into account in internationalizingthe accounting norms. The primary task is to strengthen economic reform,creating environment for the internationalization. Secondly, we shouldimprove the information disclosure norm to meet the internationalrequirement step by step, establishing a sound information disclosuresystem, and playing the role of supervision strictly. Thanks to an extensive study on and reference to related theories andviews, this thesis presents the followings original ideas: 1. This thesis is of great practical importance by analyzing thereform and improvement...