【正文】 ard , in 1992 , effective July 1993 . This standard , based on International Accounting Standards , provided a conceptual framework and set out accounting principles . This was followed by additional standards . The Basic Accounting Standard changed the valuation of inventory in a variety of ways . Some administrative expenses ( such as interest expense related to the financing of fixed assets , gains or losses from foreign currency transactions/translations , and inventory carrying costs ) that were previously capitalized as inventory costs were now required to be expensed ( Hilmy , 1999 , pp . 501 2 ). Other changes in the distinction between period and product costs are described below . The Accounting System for Business Enterprises were applicable to joint stock limited enterprises effective 1 january 2021 and Foreign Investment Enterprises effective 1 january 2021 . On 15 February 2021, the Ministry of Finance ( MOF ) announced that it had adopted a new Basic Standard and 38 new Chinese Accounting Standards ( CASs ) that were substantially in line with International Financial Reporting Standards (IFRS) . The MOF required all listed panies to start using the new CASs in the preparation of their 2021 annual financial statements . Additionally, use of the new CASs will be expanded to all stateowned enterprises controlled by the Chinese central government starting in 2021 , and then to all large and mediumsized panies in China starting in 2021 . Adoption of the new Standards makes financial reporting by People39。S REPUBLIC OF CHINA ACCOUNTING PRACTICES Following the establishment of the People39。 now Dean , Faculty of Business and Economics , University of Hong Kong . The firms visited included : Mr. Ding Pinzhun , Institute of Management Accountants Senior China Advisor , formerly of the People39。 Lawson , Institute of Management Accountants Director of Research and ProfessorinResidence 。 Explore the importance of product costs in Chinese firms39。 The costing practices used by Chinese panies are such that product costs are not accurately determined ( we note that the term accuracy is relative 。 2 . An examination of both the regulations panies follow as well as the actual practices they undertake 。 Most Chinese panies follow traditional methods for allocating costs to products , although the use of more accurate costing techniques is emerging . This state of costing practice is similar to that encountered in the West . Improvement in practice should be based on a cost/benefit analysis performed on an individual pany basis . s Republic of China brings around substantial convergence of Chinese accounting standards with International Financial Reporting Standards ( IFRSs ). Cost And Management Accounting in the People39。 The adoption of the 2021 Accounting System for Business Enterprises ( ASBEs ) by the People39。 changes made by the 2021 Accounting System for Business Enterprises have begun to address these . It cannot be concluded that differences in costing practices lead to product dumping. II . Study Background OBJECTIVES This report is the result of a study undertaken by the Institute of Management Accountants . The objectives of the study included the following : 1 . A parison of international and Chinese accounting policies , procedures , and methods 。 The means by which pricing decisions are reached is such that distortion of product costs will result in the determination of selling prices that are materially different than those that would have been determined had accurate costs been used . Proving the existence ( or lack thereof ) of all of these conditions is not an easy task. In this study, therefore , we : Examine the costing practices currently employed by Chinese panies and pare these to the various standards indicated above 。 Reach , to the extent possible , a conclusion regarding the impact of Chinese costing practices on product costing . In order to acplish these objectives , the Institute of Management Accountants conducted a research study in two phases . In the first phase , an Institute of Management Accountants research team visited a variety of Chinese enterprises . This team consisted of : Professor Gary Biddle , formerly Chair Professor Hong Kong University of Science and Technology 。 Enterprises from a diverse set of industries, including those subject to dumping disputes . The firm visits provided a wealth of information regarding the cost management practices used by the firms visited, and additionally provided the basis for the development and refinement of a mail survey instrument examining costing practices utilized by a much larger sample of Chinese panies . PEOPLE39。 and establishing the norm management system for realizing the technoeconomic targets of an enterprise . Part of this infrastructure involved the requirement that panies follow a un