China And South Korea Accounting Standards And International Accounting Standards Comparative Study

Most countries in the world have adopted the International Accounting Standards, the Chinese Ministry of Finance also issued New Accounting Standards in February 2006, and the New Accounting Standards is fully compatible with Chinese National condition and the International Accounting Standards. The Korean Government is also in agreement with the World Bank after the 1997 financial crisis, started to reform Accounting Standards, enhanced the transparency of accounting information and the convergence with international accounting standards. Since China and Korea established diplomatic relations in 1992, a tremendous number of Korean enterprises investing in China, Chinese enterprises also have invested in Korea. Political, economic and cultural exchanges more and more. In investing, for any investors to invest in foreign companies, investors should understand the different foreign accounting system. This paper discussed the main difference between the theory of the Chinese New Accounting Standards, the Korean Accounting Standards and the International Accounting Standards. I sincerely wish that this paper will help the Chinese and Korean enterprises, practicing accountant and the practice of accounting.The first part of this paper describes the Chinese New Accounting Standards in compared with the Old Accounting Standards, analyses the major differences of the basic norms and the impact of differences on specific criteria. The second part focuses on the comparison of the Chinese New Accounting Standards, the Korean Accounting Standards and the International Accounting Standards, analysis the major differences of specific criteria and the basic norms. The third part is concentrated on the main differences between the Chinese Old and New Accounting Standards and the impact on businesses, the Korean convergence with the International Accounting Standards plan and the impact on businesses. Appendix parts are the development process of Chinese, Korea and theInternational Accounting Standards and the major differences between those three Accounting Systems.