A Comparative Study On Chinese And South Korean Accounting Principles

With the rapid development of world economic exchanges, accounting general economic language in the world. In world trade, economic integration development process, any country can’t peeling the independent development of world economy and trade market and capital market. Following China’s accession to the world trade organization (WTO) and the and so on deepening the reform and opening to the outside world, and the introduction of foreign capital policy continuously, South Korea to China and China’s investment in South Korea also gradually increased. Due to the cooperation between China and South Korea, economic exchanges and the increase of the investment scale, the two countries economic, political, and cultural exchanges between the more and more closely. However, China and South Korea in the accounting laws and regulations, there is biggish difference in some aspects, such as the accounting processing method, and based on the requirement of different accounting standards formed different accounting statements, both China and South Korea enterprise when making investment decisions often lead to financial statements do not match the accounting information disclosure and controversy, thus inevitably lead to the distrust each other. The purpose of this thesis is from the differences of criterion, the concrete analysis of the two countries in the differences in accounting information disclosure, to help the accounting information users in the two countries to understand each other accounting standards, accounting environment and accounting policy, in order to improve each other trust and company growth.In this paper, the research content mainly includes three parts. Paper first analyzes the research situation of accounting standards of China and South Korea and China and South Korea two countries the introduction of the specific situation of the international accounting standards. Then process of formation and development of accounting standards of the two countries, the basic concept of accounting standards between the two countries, China and South Korea in accounting assumptions, measurement basis, the framework and structure, information quality characteristics of accounting standards, this paper analyzed the differences of the research. Papers to the financial statements of the two countries finally has carried on the detailed comparative study of the main comparative content contains the definition of the balance sheet, income statement and statement of cash flows, the structure of the report and report project.This study aims to according to the different political environment of China and South Korea, society, economy, analysis of the two countries, accounting standards and financial statements to analyze their differences. For China and South Korea in the accounting standards and financial statements to compare the similarities and differences, has help to the accounting information users to better understand the enterprise’s financial position, operating results and cash flow situation, in order to make relevant decisions, but also help to promote trade between the two countries communication, so the research has certain practical significance. Additional debt research can also help China and South Korea two countries accounting standards with international accounting standards.