This paper aims to explore the implementation of fair value accounting (FVA) in China as part of a global process of neoliberalisation and financialisation of political and economic systems. It establishes that FVA forms part of the technical architecture of neoliberalism.
In considering the processes of neoliberalisation in China, this paper uses a qualitative approach to explore some of the impacts the adoption of FVA has had on Chinese capital markets.
It is shown that the practice of FVA is imbued with assumptions about the state and the market that have little bearing on the realities of Chinese capital markets. Rather than advancing the public interest, as neoliberal theories claim, this accounting change has failed to transform political and economic power. Instead, it has provided another opportunity to reposition powerful political and economic elites both inside and outside China. This paper argues that the process has reconfigured capital markets in the image of those in advanced capitalist economies, but is devoid of the regulatory and socio‐political apparatus to rationalise its relevance and reliability in the Chinese context.
By positioning the research in broader literature of neoliberalism, this paper offers an alternative framing of the purpose of adopting FVA and, more broadly, the globalisation of International Financial Reporting Standards (IFRS).
Zhang, Y., Andrew, J. and Rudkin, K. (2012), "Accounting as an instrument of neoliberalisation? Exploring the adoption of fair value accounting in China", Accounting, Auditing & Accountability Journal, Vol. 25 No. 8, pp. 1266-1289. https://doi.org/10.1108/09513571211275470Download as .RIS
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