Accounting System and Economic Development

Author: Zhou Hua
Publisher:
Publish Date: 2006-05-25
Features: This book advocates for the development of accounting theories that reflect local values. It begins by analyzing the practical needs of tax regulation and the theoretical divergences in tax accounting, introducing the "Three-Factor Theory of Accounting Systems" and the "Four-Stage Theory of Accounting Development." On this basis, it argues against the possibility of international accounting convergence and points out that the prevailing accounting conceptual framework is unsuitable for China's legal, financial, and fiscal environment. The book posits that the nature of accounting systems is a corporate profit-sharing rule that emerges from the integration of civil and commercial legal systems, fiscal and tax systems, and accounting techniques. Its function is to provide stable and reasonable expectations for corporate profit-sharing. The author suggests that China needs to independently design a more applicable financial accounting conceptual framework and accounting system based on legal principles. Accounting systems and tax regulations should be further integrated rather than separated. Statistical analysis and mathematical statistics can only offer possible explanations using statistical probability and cannot be used to confirm the success of accounting system reforms, but they can be used from a pragmatic perspective for economic regulatory discrimination. By examining the EU's accounting coordination and the state of accounting development in France, the book demonstrates the feasibility of independently building accounting legal systems. The author believes that in response to the practical needs of China's economic development, the country should adopt a synchronized optimization path of accounting systems and civil and commercial economic laws based on the achievements already gained from international convergence. This approach aims to deepen accounting reforms to build a sound market legal system and stable accounting systems, thereby perfecting the socialist market economy system.