The Research On Convergence Of China Accounting Standards And International Financial Reporting Standards

Accounting as the world's universal language of business is playing a very important role with the development of economic globalization and the formation of the world's capital market integration. In the beginning of this century, International Financial Reporting Standards Board proposed on a series of planned global convergence of accounting standards in order to improve the international comparability of financial information. In recent years, China has been concerned with the development of international accounting convergence trend and in February 2006, the Ministry of Finance introduced a new system of accounting standards. The system in the development of the early days will be targeting the development of the international convergence. The study of international convergence of accounting standards has become to a new research focus. The research on convergence of Chinese accounting standards and International Financial Reporting Standards can be done with international standards for the further preparation and advance effectively to raise the level of domestic accounting profession and develop China's actual conditions more suitable for high-quality guidelines for reference in the international and domestic economic environment.This article is based on the global convergence of accounting standards and China's plans to promote the implementation of new guidelines. First of all, from the perspective of the international convergence of accounting standards, the dissertation elaborates Chinese and international accounting standards at different stages of the development process. And from the perspective of game theory it analyzes of the essence of international convergence of accounting standards which is the game process that the country starts to compete for the right of drafting in order to safeguard the state interests. Secondly, based on 2006 business accounting standards of China's basic guidelines the dissertation, using standard research methods, analyzes qualitatively of the Chinese Accounting Standards and International Financial Reporting Standards in the guidelines system, financial conceptual framework and guidelines for coverage of the convergence of the situation. And the analysis showed that the Chinese accounting standards system is a relatively complete system of the organic unity, and to improve the international financial reporting standards provide a useful reference. Further more, the dissertation measured quantitatively in China 2006 Enterprise Accounting Standards and International Financial Reporting Standards in specific degree of convergence criteria using the weighted average distance Measurement result is a higher degree of overall convergence (0.87), but there are still some guidelines for a low degree of convergence. It shows that these differences are in line with China's reality through the analysis, China sticks to the convergence principle of both international convergence and China's national conditions. It is an international accounting standards convergence of Chinese characteristics. Finally, this dissertation puts forward to improve accounting standards system recommendations after concluding main contents.