A View Of Net Income: Revolution Of China's Accounting System

From 1992 through 2003, China' accounting system exercised several revolutions. Theserevolutions all emphasize inclination to the International Accounting Standards (IAS).Threeimportant revolutions of these were regarded widely. What about the effects of these revolutions?How far is China' accounting system from IAS? What experience do these have to help therevolutions in future? These are all emergent questions to China' revolution of accounting system.The paper tests the effect of the internationalization of accounting system by the difference ofB-share listed firms net incomes under the two accounting systems on the basis of theretrospection of development of China' accounting system and analysis of revolution'drives. Thepaper researches the evolvement process and trend, and analyzes the reason of the difference. Atthe same time, it makes the explanation and illustration by data with the two important revolutionsof 1998 and 2001.Additionally the paper distinguishes the difference into systematic and executive difference. Withthe continuous inclination, the proportion of the systematic difference should decrease. Theresearch result basically accord with our expect. Regarding the abnormal results in exceptionalyears, we eliminate the abnormal data or diversify the especial economic environments to explain.