Judgement And Research On Accounting Harmonization Degree Of Our Country

The harmonization of accounting is a topic which is issued all over the world.The intent of accounting harmonization is to improve the comparability of accounting information and to enhance the international business.As a participant of international business, our country actively harmonize the accounting standards of our country .From 1980 to now,our country's Accounting Standards have closed to international ones step by step. In this paper,we research the degree of our country's accounting harmonization after issused "Enterprise's Accounting System" in 2000. At last we have some advice on accounting standards.This paper compared the financial data under Chinese Accounting Standards with those under IAS based on empirical methods. We researched the degree of harmonization by statistical analysis including descriptive statistics, parameter T test and nonparameter Wilcoxon Test.There are six parts in this paper .The preface part of this paper studies the document and carries on relatively overall retrospect on international harmonization of accounting, summarizes the research views, finding and conclusion, puts forward the preliminary imagination of this paper .The second part expounds the criterion of accounting harmonization of our country and the process of harmonization in Europe and America. In this part, we summarize the process of accounting harmonization of America, Europe and China, and compare the international accounting standards (IAS) and Chinese accounting standards (CAS). The result is that CAS is similar with IAS .The third part makes brief comment on methods to quantify the degree of harmony of financial reporting practice, and discusses various methods for measuring accounting harmonization, covering the index method, the comparability appraisal method, the earnings management method, and the method of estimating income and effect . In this paper, we chose the last method . The forth part is the main body of thispaper. Based on a sample of listed companies required to reconcile financial statements from Chinese Accounting Standard to International Accounting Standard between 2001 and 2004, we used the net profit, the net assets and the return on net assets as the index to research on the harmonization of Chinese accounting practice. We found that in 2001 using all three indexes Chinese accounting practice was not harmonized;in 2002 Chinese accounting practice was harmonized .In 2003 and 2004 Shanghai Stock Exchange accounting practice was not harmonized ,but Shenzhen Stock Exchange accounting practice was harmonized. Therefore, we carried on the further analysis of the net profit and the net assets in order to explain this result. Basing the research of this paper, the fifth part tables proposals on establishing standards in future.