A Comparative Analysis of Accounting Standards on Consolidation and Long-Term Investments

摘要

This study intends to make a comparative analysis of the accounting standards for consolidation and investment in the three Chinese regions, i.e. the Mainland, Taiwan and Hong Kong, against the international accounting standards and the U.S. GAAP in order to facilitate more informative financial reporting. We also discuss the disclosure and supervisory requirements for equity investments. Due to the differences in the historical backgrounds and stages of economic development among the three regions, it is inevitable and necessary for the regions to maintain their respective characteristics in the accounting standards. Our analysis would generate some insight into how the three regions could reduce unnecessary differences between accounting standards in order to provide international investors with better and more reliable business information for decision making.