Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 11

What are the differences with respect to how corporate governance is carried out and monitored in the Chinese system versus that in the U.S.?

Step 1 of 2

Corporate governance:

Corporate governance is defined as a rule and law under which organization regulated, operated, and controlled.

Accounting:

In simple words, accounting is the process of recording, classifying, and analyzing the financial information of a company. This is not a single process as it includes many sub-processes under it. It requires specific knowledge.

Before 1990 the financial report of the Chinese company is based on Chinese accounting standards. In the year 1990 china started scrubbing its accounting system. At the beginning of the year 1990 around 1,200 companies listed on the Shenzhen and Shanghai stock market, the ministry of finance required them to adopt the norms similar to IFRS.