Aresearch On Convergence Into IFRS-China And Peru, A Common Goal.

The development of financial statement has experienced more than one hundred years. New business practices and technological developments are impacting and shaping the financial reporting process. Nowadays, the constant need for uniform application of criteria for the preparation and presentation of financial statements has gotten a major adoption of international accounting community. From a historical perspective, this paper found that despite the debates over the merits and feasibilities of global accounting standards in many years, the spread of multinational operations and the flourish of global capital markets have summoned more and more nations to either adopt International Financial Reporting Standards (IFRS), or to base their local standards on IFRS.This paper first studied International Financial Reporting Standards (IFRS), and then investigated separately the comparability of People's Republic of China's General Accepted Accounting Principles (PRC GAAP) and International Financial Reporting Standards (IFRS), as well as Peru's General Accepted Accounting Principles (Peruvian GAAP) and International Financial Reporting Standards (IFRS). By examining the development of China's accounting as well as Peru's accounting, the paper provides reason and evidence of how different kind of factors affect accounting practice.The convergence of IFRS in China has been a result of ongoing socio-economic reforms and developments cross-fertilized by internal and external factors. While in Peru, according with Peruvian Law, entities' financial statements must be prepared according with the IFRS approved by the Peruvian Accounting Standard Setter.Financial statements are presented to users, by many undertakings around the world. Although such financial statements may appear similar from country to country, there are differences that have been caused by a variety of social, economic and legal circumstances, and by different countries serving the needs of different users when setting national requirements. IASB is committed to narrowing these differences, by seeking to harmonize regulations, accounting standards and procedures, relating to the preparation and presentation of financial statements. It is concluded an extraordinary success had been achieved in developing a comprehensive set of'high quality'IFRS standards, in persuading almost 100 countries to adopt them, and in obtaining convergence in standards with important non-adopters (notably, the US).On the other hand, I envisage problems with the current fascination of the IASB (and the FASB) with'fair value accounting'. A deeper concern is that there inevitably will be substantial differences among countries in implementation of IFRS, which now risk being concealed by a veneer of uniformity. The notion that uniform standards alone will produce uniform financial reporting seems naive.