Chinese Enterprises Urgently Need To Adapt To The New Standard System

In February 15, 2006, the new accounting standards and auditing standards for enterprises were officially promulgated. They are 39 accounting standards for enterprises and 48 auditing standards for certified public accountants.

With the acceleration of China's reform and opening up process, many Chinese enterprises are beginning to take the lead in the international market and gradually seize the market.

At the same time, China's accounting standards system has been gradually established, and by 2001, 16 accounting standards have been promulgated.

But on the other hand, China's long-standing "accounting standards and accounting system" mode is not consistent with international practice, making the investors of overseas listed companies have many inconveniences in reading the statements of enterprises.

The Ministry of finance has released more than 20 draft opinions in a short year, and finally prompted the new accounting standards system to be "fresh".

David Teddy, chairman of the international accounting standards board, also pointed out that the implementation of the accounting standards system for Chinese enterprises has made substantial convergence between Chinese accounting standards and international financial reporting standards, and is a very important step to promote China's economic development and enhance China's position in the international capital market.

However, reporters think that the prospects are bright, but the process is difficult.

The introduction of any new system to the promotion and application has never been a smooth sailing process.

The emergence of new accounting standards has been discussed and discussed by numerous experts and scholars. However, once implemented as an implementation of the new guidelines, it is conceivable that the Chinese enterprises will have to face the question of how to integrate with the new accounting standards, how to pition and how long the pition time will take.

From now until January 1, 2007, the new accounting standards for enterprises have been left to the Chinese listed companies for less than a year. In this short 10 months, the bosses have to do well with the new standards and adapt to the work. However, the enterprises of non-listed company have not yet specified the time when they apply the new guidelines. It is precisely because the Ministry of finance has considered the difficulty of implementation of the new guidelines for non-listed company that it is more difficult to implement them.

The promulgation of the new accounting standards has achieved convergence with international practice. However, this is only theoretical convergence with the international market. This convergence has lagged far behind the reform and opening up that has been carried out in China for nearly 30 years. As a direct influence of the guidelines, Chinese enterprises should strive to shorten the time to adapt to the new accounting standards in order to truly achieve international convergence.

And how to shorten the span time, at least from the following aspects: first, whether it is listed or non listed enterprises, should strengthen their financial personnel to learn and understand the new accounting standards.

Corporate financial personnel are the direct compilers of financial statements, so the degree of understanding of new accounting standards is directly related to whether the compilation of financial statements meets the requirements of the new accounting standards.

Secondly, we should make full use of the excellent experience of other countries in achieving national accounting standards and international convergence.

Australian accounting has been deeply influenced by the British accounting mode. As a result, the Australian accounting profession has basically established the position of international accounting standards after its profound reform. Meanwhile, the formulation procedures, organization and personnel composition of the standards have been perfected in a relatively short time.

NIA Gavan, an overseas policy manager of the National Association of Accountants of Australia, told reporters that NIA is very willing to help Chinese enterprises quickly adapt to the new guidelines of convergence with international practices with Australian experience.

Therefore, when we are in close contact with other accounting organizations in other countries and exchange the international convergence of accounting standards, Chinese enterprises should actively learn from other countries' experience.

Finally, the competent departments at all levels should strengthen the training of enterprises, supervise the adaptation process of enterprises, and urge enterprises to prepare financial reports according to the new accounting standards before they are formally implemented, so as to make them "face danger and fear".

In the face of the new trend of international convergence, the burden of accountants will undoubtedly increase. But as long as we actively adjust, grasp the essence and concept of the new guidelines, and effectively guide the relevant departments, we can meet the technical difficulties.

At the same time, the person in charge of the enterprise should be duty bound to support the popularization and application of the guidelines.