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.

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