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What makes you think there is no chinese GAAP? https://en.wikipedia.org/wiki/Chinese_accounting_standards https://en.wikipedia.org/wiki/Chinese_accounting_stand

• brobinson 11y ago
  >similarity between the new Chinese accounting standards and the IFRS is almost 90–95% I didn't realize they had made these changes. Interesting. Historically, western investors avoided the Chinese markets because none of the data coming out of China could be trusted due to lack of transparency and the different reporting requirements. Thanks for the link.
  • fredkbloggs 11y ago
    > I didn't realize they had made these changes. Interesting. Historically, western investors avoided the Chinese markets because none of the data coming out of China could be trusted due to lack of transparency and the different reporting requirements. It still can't. The existence of standards does not imply compliance. I view the Chinese market as similar to Russia's: there are rules, but there are a lot of people who are effectively exempt from following them (at least until someone more powerful decides they aren't). Add in the lack of cultural taboos against defrauding others and it's a very difficult market. Accounting standards were (some might say still are) a problem, but not the problem.
    • brobinson 11y ago
      The Party's internal crackdown on corruption is apparently pretty comical according to mainland Chinese of mine as everyone there knows that pretty much everyone in power is hopelessly corrupt. C'est la vie.