Chinese Innovation
It's a commonplace that Americans and Westerners are the technical and business innovators, and that Chinese are good at imitation. But sometimes it's the reverse. I recently learned of a Chinese tax policy that I fear the IRS may want to emulate someday (if they are not already--I'm not a tax expert). It's come to my attention that when a foreign company owns a Chinese company qualified to do business in China, the Chinese Tax Authority (the analog of the IRS) requires the Chinese company to use Chinese-government approved accounting software which is directly linked to the tax agency's computers--every day, in real time, the company's financial and other data that is entered is directly accessible to and ported to the tax agency's system. Res ipsa loquitur.
Comments (4)
M E Hoffer
This is coming to the U.S. through SEC program, now voluntary, requiring the filing of "public reports"( 10-K, 10-Q, et al, ad infinitum ) using XBRL.
Cox, his ownself, is on record saying that the program has multi-various applications for multi-various, including the IRS, agencies.
Published: June 7, 2006 10:11 AM
M E Hoffer
http://www.cfodirect.pwc.com/CFODirectWeb/Controller.jpf?ruleCode=MSRA-6LBQAZ
as one can tell, from the link, this, XBRL, is a real "chop-moistener" for "Consultants" and "outside" Auditors/Attorneys/Accountants and their attendant IT support eco-system.
Published: June 7, 2006 10:42 AM
Black Bloke
I thought XBRL was just a XML file format for the SEC filings? I was watching Cox on C-SPAN the other day, and he gave the analogy of the RSS feed and it's ability to automatically adapt to changes in inputs. I thought it sounded pretty cool if that could be applied to financial information. Now I've got to worry about it?
Published: June 7, 2006 7:33 PM
Horatio
I really hope that doesn't come here. I enjoy paying cash at Chinese businesses because I know they report as little of it as possible. The same goes for tips.
Published: June 8, 2006 7:25 AM