Content and context : "fair" values in China

摘要: Purpose The evolution of International Financial Reporting Standards (IFRS) was nurtured by economists and accountants loyal to the philosophical basis what is often referred as “Western” market economies, being classical neoclassical contracting theories. The purpose this paper illustrate how a particular Asian cultural attribute (guānxi ) impacts on efficacy fair value measurement. Design/methodology/approach Using literature review research studies adoption IFRS in China, both guānxi Chinese accounting research, study unbundles Williamson’s governance structure theory examine positioned orthogonally (market-oriented valuation) principles for financial reporting. This followed case events surrounding collapse China Medical Technologies. Findings Guānxi integral economies economic transactions. Resulting conditions, characterised relational contracting, may not meet qualitative characteristics neutrality faithful representation measurement assets liabilities. same be true when insider or “trusted party transaction” values prevail large ticket transactions among entities any jurisdiction. Research limitations/implications Future impact constrained its hidden, yet dynamic, character; varieties manifestations. Originality/value This highlights difficult it achieve comparability relevance asset liability recognition rules (and possibly also other) adopting that are developed Western context.