JEL Classification: L 24.
Potryvaieva Natalia, Doctor of Economics, Professor of the Department of Accounting and Taxation, Mykolayiv National Agrarian University, Mykolayiv, Ukraine
ORCID ID: 0000-0002-9781-6529
e-mail: potrivaeva@mnau.edu.ua
Pisochenko Tatyana, Candidate of Economic Sciences, Assistant of the Department of Accounting and Taxation, Mykolayiv National Agrarian University, Mykolayiv, Ukraine
ORCID ID: 0000-0001-5647-8167
e-mail: pisochenko@mnau.edu.ua
Kononyuk Valentina, Higher Education Learners, Mykolayiv National Agrarian University, Mykolayiv, Ukraine
Nemirovskya Natalia, Higher Education Learners, Mykolayiv National Agrarian University, Mykolayiv, Ukraine
Harmonization of accounting process in Ukraine and People’s Republic of China
Abstract. Introduction. Long-term processes of accounting and reporting reforms according to International Financial Reporting Standards (IFRS) determine the need for a new accounting system that meets the requirements of the modern stage of economic development, and also harmonizes with the accounting systems of other countries. Mutual convergence of national accounting and reporting models of Ukraine and People’s Republic of China in the transition to IFRS will have result in a synergistic effect in the rate of development of joint projects through increased confidence, the development of common language of business, which ultimately will have a beneficial effect on the development of the economies of both countries. The choice of the topic and its relevance is determined by the need to find ways to converge the Ukrainian and Chinese accounting systems on the basis of similar national accounting principles to strengthen bilateral Ukrainian-Chinese economic cooperation.
Purpose. The purpose of the article is to provide a scientific and practical justification for improving domestic accounting through convergence with the Chinese accounting system, based on the study of its reform experience in the transition to IFRS.
Results. The features of the accounting systems of the two countries, namely, Ukraine and People’s Republic of China, have been studied, the necessity and the possibility of their classification and modeling, which involves the analysis of information on national accounting and reporting systems that interact with the external environment and one to another, have been identified. The classification of accounting system of Ukrainian and Chinese accounting is considered. The differences between the Chinese normative accounting system and the Ukrainian one are revealed and the ways of their probable elimination are proposed. The methods of reforming for convergence of pace and restructuring of accounting systems of two countries mechanisms are highlighted. The proposals for the introduction into the Ukrainian accounting practice of certain Chinese accounts are substantiated.
Conclusions. Despite the fact that the process of harmonization between domestic and Chinese accounting systems, although not yet focused, has enough prerequisites and factors for the convergence of accounting systems of two countries, including political, historical, ethical, and others. Considered positions of researchers on the peculiarities of accounting and financial reporting of Ukraine and People’s Republic of China make it possible to build a future perspective of systematization of the experience of the two countries for further bilateral and international cooperation in the field of accounting, mutual improvement of investment mechanisms, which will successfully operate between joint ventures in the conditions of convergence of national accounting systems one to another and with IFRS.
Keywords: Accounting; Harmonization; Convergence; International Financial Reporting Standards.
- Verkhovna Rada of Ukraine (1999), Law of Ukraine “On Accounting and Financial Reporting in Ukraine” dated 16.07.1999 No. 996-XIV, available at: http://zakon2.rada.gov.ua/laws/ show / 996-14 (Accessed 01 August 2018).
- International Financial Reporting Standards, available at: https://goo.gl/5XiVzh (Accessed 01 August 2018).
- Accounting regulations (standards), available at: https://buhgalter911.com (Accessed 01 August 2018).
- Ministry of Finance of Ukraine (2013), National Accounting Standard (Standard) 1 “General Requirements for Financial Statements” dated 07.02.2013 no. 73, available at: http://zakon3.rada.gov.ua (Accessed 01 August 2018).
- International Accounting Standard 1 (IAS 1) (2012), available at: http://zakon0.rada.gov.ua/laws/show/929_013 (Accessed 01 August 2018).
- Stolyar, L., Klebanovich, Z. (2017), “Comparative characteristic of the National Accounting Standards (Standards) and International Accounting Standards”, Young Scientist, no. 5 (45), May, 2017, pp. 742-745.
- Lymar, M. (2017), “Convergence of National Models of Accounting and Reporting of Russia and China”, KANT, no. 1 (22), pp. 138-143.
- Potrivaeva, N. V. and Mashevskaya, J. V. (2016), “Organizational-methodical principles of formation of accounting policy according to international and national standards”, Global and national problems of the economy, vol. 10, pp. 967-970.
- Lugova, O. I., Kryzhanovskaya, N. M. and Ivanova, I. V. (2017), “Restoration of enterprise accounting: preconditions and essence”, Modern Economics. vol. 6, pp. 121-129.
- Ministry of Finance of the People’s Republic of China (2000), Regulation “On financial and accounting reporting of enterprises” [adopted by the decision of the State Council of the People’s Republic of China, June 21, 2000, No. 287] [Online], available at: http://www.mof.gov.cn (Accessed 01 August 2018).
- Ministry of Finance of the People’s Republic of China (2006), Standard of Accounting in Enterprise No. 32 “Interim Financial Reporting” [adopted by the Ministry of Finance of the People’s Republic of China on February 15, 2006] [Online], available at: http://www.mof.gov.cn (Accessed 01 August 2018).
- Chen May, Van Goshen (2015), ”Financial Accounting”, Metropolitan University of Economics and Trade, Beijing.
- Sun Yuan, Dong Fuguy (2012), ”Song Yuan Accounting from scratch”, Tsinghua University, Beijing.
- Sirenko, N. Baryshevskaya, I. Poltorak, A., and Shyshpanova, N. (2018). State and tendencies of intergovernmental regulation in Ukraine in conditions of fiscal decentralization. Financial and credit activity: problems of theory and practice, 2, no. 25 (2018), pp.157-164. https://doi.org/10.18371/fcaptp.v2i25.136489.
- Sirenko, N. M. and Dubinin, V. A. (2007). The system of public management of the innovation process in Ukraine. The Bulletin of the Agrarian Science of the Black Sea Region. Special issue, 3, pp. 190-194.
Українська