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The law sets out general principles of accounting for all enterprises and also empowers the Ministry of Finance to administer accounting affairs and to establish uniform accounting regulations and systems. Under the mandate of Accounting Law the Minister of Finance has issued various accounting regulations that apply to different categories of enterprises. China is increasing its transparency in its financial reporting. In addition, it is undergoing a dual transition from a centrally planned economy to a socialist market economy, and from an emerging economy to an industrialized economy in which the business environment is in constant change (Zhang, Lei and Shira, 2007)...
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