China’s ageing, risk of the elderly and accounting for aged care

Abstract

This paper analyses the risks of the elderly and needs for aged care in China as a major social problem faced by the Chinese government in the 21st century, suggests the development of aged care accounting as a tool of providing information for policy‐makers, and outlines a general framework for such a development. The role of accounting in addressing aged care issues is recognised with a view to expanding social and demographic dimensions of accounting. Social and economic developments in China have increased people’s life expectancy which is leading to rapid population ageing. Meanwhile, the economic reform has largely dismantled the infrastructure of the traditional socialist care system. Consequently, there is growing concern about the risk and financing of aged care. The “one couple with one child” policy in China has also brought up the issue whether China will be able to afford the enormous amount of cost that aged care needs in the 21st century. The emergence of accounting for aged care is likely to provide information which can be used to address these demographic issues.

Citation

Zhang, J. (2003), "China’s ageing, risk of the elderly and accounting for aged care", Managerial Finance, Vol. 29 No. 5/6, pp. 97-110. https://doi.org/10.1108/03074350310768788