A Study On International Harmonization Of Accounting Standards In China

Under the background of integration with the global economy, accounting has become more and more important in the economy world, which is an important tool to bridge the gap between the domestic market and international market. Accordingly, international harmonization of accounting standards has become the inevitable and realistic issue for countries worldwide.China is closely linked with international capital market after China becoming a member of WTO. As far as China is concerned, international harmonization of accounting standards has been the main subject of accounting reform and accounting standards development all along. For this reason, this dissertation explores the relevant issues from the standpoint of international harmonization of Chinese accounting standards (CAS) and seeks to provide a relatively complete framework for the research on international harmonization of accounting standards in China.This dissertation firstly theoretically analyzes and distinguishes the related concepts of international harmonization of accounting standards, then makes some descriptions and analyzes the international harmonization process and status quo of Chinese Accounting Standards. To a large extent International Financial Reporting Standards (IFRS) can represent the result of international accounting harmonization and it has been generally accepted all over the world, so this dissertation attempts to explains the reasons of choosing International Financial Reporting Standards (IFRS) as the primary yardstick in the process of accounting harmonization in China. Then the dissertation systematically elaborates on the harmony degree between Chinese Accounting standards and International Financial Reporting Standards from two aspects. Firstly qualitatively compares International Financial Reporting Standards with Chinese Accounting Standards in system, scope of accounting standards and Conceptual Framework of Financial Accounting. Then, by using Analytic Hierarchy Process and Proportion Evaluation Method, the harmony degree is calculated and the result of 0.87 shows a high harmony degree between CAS and IFRS even though there are still some discrepancies existed. And finally, based on the aforementioned and taking China's sovereignty and economic interests into account, some suggestions related to international harmonization of accounting standards in China are provided as a conclusion.