Economic reforms in the People's Republic of China are moving that nation toward a market-driven economy. China's accounting practices mu st also change to accommodate the needs of potential investors. In an article entitled "Institutional Factors Influencing China's Accounting Reforms and Standards." Professor Bing Xiang analyzes the changes in the accounting environment of China during the recent economic reforms and their implications for the development of accounting reforms.

In your library or from some other source, locate the indicated article in Accounting Horizons, June 1998.

Briefly describe the economic reforms that led to the need for increased external financial reporting in China.

Conformity with International Financial Reporting Standards was specified as an overriding objective in for mu lating China's accounting standards. What is the author's opinion of this objective?