An assessment of the appropriateness of Chinese stock market oriented accounting system within its environment
Since the opening of the Shanghai and Shenzhen Stock Exchange in early 1990s, the economic structure of China has undergone a tremendous change. Although the social structure is still dominated by the socialist public ownership, more and more collective and private sectors appear and take precedence in underpinning the economy in the country. As to the economic structure, China is also going through a transformation from a central planning economy to a socialist market economy. Social and economic as the factors of environment have a dramatic impact on accounting system. To adapt to the changes in environment, China is adopting International Accounting Standards addressed by the International Accounting Standard Committee so as to provide a guideline to the fast growing stock market. However, the economic environment is far from the one to apply this stock market oriented accounting system.
Göteborg University. School of Business, Economics and Law