While both are formulated and promulgated by MOF, there exist certain differences them.
First, the application scope is different. Specific accounting standards are mostly applicable to joint stock limited companies, although sometimes the standards apply to other enterprises too. The Accounting System applies not only joint stock limited companies, but also other qualified enterprises.
Second, specific accounting standards only govern certain transactions and events or certain accounting aspects of an enterprise, while the Accounting System covers all aspects of an enterprise’s transactions and events.
Third, the accounting standards are more general, with no stipulations on how accounting records should be made. By comparison, stipulations in the Accounting System are more specific, giving detailed rules on the accounts and instructions for use.
