THE standing committee of China's National People's Congress will make 14 amendments to the accounting law, which has been in effect for eight years.
The amendment draft worked out by the Ministry of Finance was submitted to the fourth session of the standing committee yesterday.
Finance Minister Liu Zhongli told Xinhua (the New China News Agency) it was necessary to amend the law, which had contributed much to safeguarding the country's financial and monetary systems, to make it compatible with the fledging system of a socialist market economy.
The draft makes four amendments to the general principles of the law to expand its content and the scope of application, and further unify and standardise accounting systems.
The concept of capital has been added to the section on business accounting. Under the planned economic system employed over the past few decades, enterprises were funded by the government and there was no need for capital in accounting.
However, the reform now under way of China's accounting system highlighted the implementation of the system of capital funds by enterprises, Mr Liu said, and the accounting of capital should be an important item.
