Shock in store for companies

MANAGERS at leading China enterprises could be in for a shock when their company results are made to conform to Western accounting standards.

At a press briefing by accountancy firm Deloitte Touche Tohmatsu, Mr Dermot Agnew said while mainland enterprises were generally good at bookkeeping and maintaining records in general accountancy, discrepancies between Chinese and Western standards needed to be addressed.

The accountancy company is organising a series of seminars on Western accounting standards for the chief executives of the top 500 companies in China in March and April.

Also taking part in the series will be Merrill Lynch in Asia and Baker and MacKenzie.

Mr Agnew said the seminars were the first of their kind to be staged in China and were being organised ahead of the introduction of a new set of accounting guidelines to be introduced in China from July 1.

''These will bring accounting principles in China into harmony with generally accepted international accounting practices,'' he said.

''For some managers there will be some pain and some will receive a shock when their accounts are presented according to international accounting standards.''