Chinese accounting standards are converging with International Financial Reporting Standards, but there are still differences in practice, according to a new study by the Institute of Management Accountants.

The report, "Costing Methodologies and Cost Management Practices in the Peoples' Republic of China," found that the adoption in 2006 by China of the Accounting System for Business Enterprises has created substantial convergence of Chinese accounting standards with IFRS. However, while companies are largely following Chinese accounting regulations, there is still diversity in actual practice, including costing practices.

The study contends that the differences in costing practices do not necessarily lead to "product dumping." The cost management systems of many Chinese companies reflect planning and control systems previously used under the planned economy, says the report. As Chinese companies grow and face the complexities associated with more diverse products and customers, and increasing organizational size, they will also face the need for more complex cost management systems.

The report is available from the IMA in both English and Chinese at

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access