Research On The Reconciliation For The PRC Statutory Financial Statements And Group Reporting Financial Statements Of Foreign Invested Enterprises

Due to the different regions for the foreign invested enterprises(“FIEs”)and their holding companies,FIEs have to prepare the different financial statements for those different users.Thus there comes to different financial results for one transaction between Chinese statutory financial statements and group reporting financial statements,which leading to the doubt for the comparability and reliability for the financial information.In this context,more and more scholars focused on the research of comparison and coordination of the difference between Chinese accounting standards and international accounting standards.The scholars mainly focused on the research of comparison and coordination of the difference between accounting standards.But in fact,there has been less differences upon the issuance of “Accounting Standards for Business Enterprises – Basic Standard” and 38 Specific Standards by the Finance Ministry of People’s Republic of China on 15 February 2006.On the other hand,there still existed many differences in the accounting practice.Therefore,the paper tried to analyze the adjustments proposed in the Chinese statutory financial statements and group reporting financial statements from the perspective of accounting practice.Several samples of the adjustments proposed by FIEs were raised and analyzed.Finally,suggestions will be mentioned to co-ordinate the adjustments.It is hoped to accelerate the globalization of accounting practice and support the development of international trading and economic globalization.