FEATURES OF FINANCIAL ACCOUNTING IN THE UNITED STATES OF AMERICA, THE CHINESE NATIONAL REPUBLIC AND THE EUROPEAN UNION

Abstract

The article is devoted to the main point and specific features of accounting standards in the United States of America, the People’s Republic of China, and the European Union. They are compared with the International Financial Reporting Standards to show the main differences and similarities between local and global accounting approaches. Globalization and international business development were the reasons for the importance of organizing the correct accounting process increase. In general, the principles of financial reporting differ in territorial regions. Therefore, doing research and analysis of accounting standards of the modern economy leading countries - USA, PRC, and EU, is the relevant way to make an overview of the current process of accounting worldwide. It was proved that using the International Financial Reporting Standards is a versatile approach to report an enterprise’s financial results. Each of the discovered countries sometimes approves these standards for international companies. Moreover, local Chinese, European, and American accounting standards are based on the IFRS ones. All of the IFRS updates usually are approved for recurrence of the national standards by certain governmental institutions, for instance, the Ministry of Finance in the People’s Republic of China. However, gaining knowledge about the specifications for each country local accounting standards is crucial for completing the correct accounting activity. That is why, the historical background of the Chinese national accounting standards creation and the Generally Accepted Accounting Principles impact on the USA capital market are clarified. The main reason for the financial statements discrepancies in EU countries has been identified. In addition, the consequences of using different methods of estimating the assets` value, approved in each of the discovered countries, on the financial result of enterprises are revealed. Overall, the article consists of the detailed characteristics of the law and procedure differences in financial accounting reporting in the United States of America, the People’s Republic of China, and the European Union.