Explains why, following China‘s implementation of a market economy, public accounting firms were required to affiliate (hook‐up) with existing government or educational institutions until 1993 when partnerships and limited liability firms were also allowed. Describes the rules relating to...

Compares China‘s financial reporting systems before and after the reforms of 1993, which is seen as a dramatic turning point. Analyses the economic factors driving accounting reforms and examines in more detail the influence of the developing capital market and increasing foreign investment....