Economic Analysis On The Changes Of Chinese Accounting System

Since the establishment of the People’s Republic of China, China’s accountingsystem has undergone60years of development. During this period, from the state ofbeing in danger at past to the state of gradually becoming booming, China’saccounting system has well finished its self-development. Its structure has becomeincreasingly complex and its function has also been gradually perfected. In terms ofits change trends, it develops to be complex from the originally simple, be in orderfrom the originally be in chaos, be at junior and senior level to the originally primarylevel. China’s accounting system developed into the one with a wide range ofstakeholders, orderly transition mechanisms, lower transaction costs and a strictregulatory protection system. In terms of the historical experience of changes inChina’s accounting system, it can be seen that along with social and economicdevelopment, due to economic demands for the accounting system, changes in theeconomic system would become a major outward manifestation of the developmentof the accounting system. After the original accounting system develops to a certaindegree and gains some progress, the irrationality of its structure would becomefactors restraining the further development of the accounting system. By this time, thebalance of this system would be broken, which would produce considerablefluctuations. Therefore, there would be urgent needs to change and reorganize thestructural elements of the accounting system, so as to adapt to needs of the economicdevelopment. China’s accounting system tends to be more complicated andrationalized in its continuous development.In this paper, changes about China’s accounting system are studied from theperspective of neoinstitutional economics. Taking economic theories of Marx andrelevant statement of western economists for changes in the economic system asguidance, the Theory of Property, Transaction Cost Theory, Institution ChangeTheory and Institutional Game Equilibrium Theory in neoinstitutional economics as a direct theoretical basis and change in China’s accounting system as basic clues, theauthor makes an overview of various factors of changes in China’s accounting systemsuch as the environment for its change, subjects of changes in the accounting system,costs of changes and paths for making changes in the accounting system. In themeantime, basic forces promoting changes in the accounting system are explored; arelatively comprehensive and systematic study is made on changes in China’saccounting system; an analysis is made of how the accounting system achievesself-improvement and self-promotion, driven by various factors of changes in theaccounting system. On this basis, the change process of China’s accounting system istaken as an object to explore paths and mechanisms for changes in the accountingsystem, respectively from the macroscopical, microscopical and institutionaldimensions and perspectives of the property right, transaction costs, paths to makechanges and the game theory. Based on an comparative analysis of China’saccounting system and accounting systems in Western developed countries includingInternational Accounting Standards and U.S. GAAP, the development and changerules of the accounting system structure are extracted from the complex evolution ofthe historical development of China’s accounting system to study its futuredevelopment direction, so as to provide useful information for the further adjustmentand optimization of China’s accounting system.