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Another example regards China Life Insurance, which was listed on the Hong Kong and New York stock exchanges, raising approximately $3.4 billion. The company's future evolution was not as successful, since the following year a routine audit on the company revealed that it had uncovered $652 million in financial irregularities. The result was the immediate fall of stock, attracting a series of lawsuits regarding financial fraud. The United States investors were obviously misled, they lost significant amounts of money, their efforts were in vain, and their image was severely shaken.
The consequences of this defective accounting system that is still applied in China can become quite severe for foreign companies that invest here. As mentioned above, a series of financial irregularities can emerge. Although these irregularities are conducted by the Chinese party, it will affect the foreign one also.
It is quite probable that negative attention regarding such issues will cause these foreign companies' stock to fall, affecting severely all investors. In addition to this kind of losses, foreign companies' financial and technical resources will not be rewarded at all. Also, such situations can attract lawsuits in which foreign companies will...
Even more, these situations will attract a series of suspicions regarding companies' financial activity. These suspicions will create a negative image on the companies in case. Given the fact that for most companies a great part of their success relies on their image, the negative issues regarding their image could have repercussions that these companies will not be able to counteract.
There could be many cases regarding foreign investing companies that could renounce to investing in China's potential. This situation will be unfavorable for all the parties involved: the Chinese government, the local business partner, and local population affected by the situation.
International companies that have stronger financial power and market positioning could put pressure on the Chinese government in order to reach a conclusion regarding the implementation of an accounting system that really follows international standards. These companies could use their power and their influence in the region due to massive investments and determine China's officials to make some positive changes that could really reveal the country's political, social, and economic development.
accounting systems, their tradeoffs, and discusses the differences between countries in their approaches. Each of the cost accounting systems discussed in the articles accomplishes some management goals better than other systems, but there are tradeoffs involved with each. Different nations approach their cost accounting systems differently due at least in part to differences within cultures. For instance, GPK is more suited to countries where the culture is one of uncertainty
Accounting Theory Over the year, the world scholars continue to evaluate the economics of the world to understand their functioning. In this course, they developed the subject of accounting to assess the frameworks of financial principles. The accounting theory in discussion involves reviewing the historical foundations of financial reporting and creating new models of reporting the financial developments and exchanges (Richards, 2009, p. 17). Accounting theory evolves continually; thus, there are
Accounting standards and IFRS adoption in Cambodia and Thailand The significance of accounting standards Accounting may be considered as a business language through which the statistical results can be acquired which help in analyzing how well the firm is functioning. They give out timely statements of these statistics and help the stakeholders get all the information they need. Accounting is like a separate language which has its own grammar and these outlines
" More unfavorable publicity came in June when Jintao had to undergo medical checkups to ensure he was SARS-free when meeting President Bush and other G-8 leaders in France. There is little doubt that China's international standing was clearly badly damaged by its government's mishandling of the SARS epidemic. On July 21, 2004, Dr. Bates Gill, Freeman Chair in China Studies Committee on House International Relations Subcommittee on Asia and the Pacific,
"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods." Based on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group.
China's Economic Reform An Examination of Economic Reforms in China since 1980 As the 21st century unfolds, China has emerged as a potential political and economic juggernaut that appears to be finding its stride in the international community and marketplace. As the second-largest economy in the world after the United States, the Chinese people have clearly embraced international commerce in a major way. To date, though, while there have been a number