Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?
A)It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers.
B)It too closely reflects the views of the masses, which are not considered in establishing accounting standards.
C)Conservatism has been shown to cause economic hardship for companies operating in China.
D)Conservatism overstates assets, which is perceived to distort financial results.

Question

Quizplus · Accepted Answer

Accounting conservatism is not a basic principle in China's accounting standards because it is perceived to manipulate accounting numbers for the benefit of owners at the expense of workers, aligning with a broader concern for social and economic equity.

Why Is Accounting Conservatism NOT a Basic Principle Underlying Accounting