중국기업회계준칙과 한국채택국제회계기준의 비교연구

Abstract

A Comparative Study between Chinese Accounting Standards and Korean IFRS

Jin, Shunji

Departmet of Business Administration Graduate School Pukong National University

Abstract

The objective of this paper is to analyze the difference between current Chinese Accounting Standards announced in 2006 (hereafter, current-CAS) and the International Financial Reporting Standards (IFRS) adopted by Korea in 2008 (hereafter, K-IFRS) as a benchmark of the IFRS. By comparing the two standards (current-CAS and K-IFRS), the paper is to identify the differences and causes of differences and suggest the ways to improve the current-CAS in near future. The current Chinese Accounting Standards prepared by Chinese government, has been announced on February 15, 2006 by reflecting a large (but not all) portion of IFRS principles. Chinese government enforced for the listed firms in the Chinese stock market to mandatory follow the current-CAS from January 1, 2007 and for the unlisted firms to voluntary follow the current-CAS. Whereas, Korea government adopts nearly all of the IFRS's principles and enforces for the listed firms in the Korean stock market to mandatory follow the K-IFRS from January 1, 2011. The results of the paper show that the difference between the current-CAS and K-IFRS are as follows: Firstly, the current-CAS does not adopt yet four specific standards while the K-IFRS adopts those four specific standards in IFRS such as IFRS No. 5 (Non-current assets held for sale and discontinued operations), No. 8 (Operating segments), No 29 (Financial reporting in hyper-inflationary economies), No. 33 (Earnings per share). Secondly, the current-CAS does not accept consolidation accounting yet whereas the K-IFRS accepts consolidation accounting. Thirdly, the current-CAS does not accept comprehensive income concept in the income statement yet whereas the K-IFRS does accept comprehensive income concept already. The causes of the above differences result from several factors related to politics, economics, and social environments surrounded two countries where the socio-economic background of China is based on socialism for the last six decades while that of Korea is based on capitalism for the last five decades. The other causes arise from economic growth patterns of the countries. Even if the economic growth pattern in China is very fast for the last two decades, the market for mergers and acquisitions is not active to enforce consolidation accounting for the listed firms.