The Research And Measurement On International Harmony Of Chinese Accounting Standards

International harmonization of accounting standards has been a key issue for accounting academics, practitioners and regulators in recent years. As an international commercial language, accounting has performed outstanding functions in international trades, international capital circulation and economic interaction etc. More and more countries have attached importance on international harmonization of accounting standards. International harmonization can reduce the cost of standards formulation and the cost of fund-raising and transaction in the international market. It also can make national enterprises be in the advantage in global economic competition. In 2001, our country became the formal member of WTO. China has become the country that attracts more and more investment, and the pace of economic combination has become faster and faster. Under the background of this situation, China needs a series of accounting standards, which can be admitted by other countries and can be performed easily.China issued a new series of accounting standards in February 2006．The new accounting standards have become one of the hot topics in both accounting theory areas and practice areas, because they represent the achievement and the level of accounting researches in our country. In this thesis author attempts to compare the new accounting standards with International Accounting Standards, and does a measurement on the degree of international harmonization. At last of this thesis, we can provide some advice on the accounting standards construction.There are six parts in this paper. The preface part of this paper introduces the backgroundof this thesis, and studies the document and carries on relatively overall retrospect oninternational harmonization of accounting, summarize the research views, findings andconclusions, and put forward the preliminary imagination of this paper. The second part introduces the relevant conceptions of accounting harmonization. It also gives a brief summarization of accounting harmonization process in china. The third part makes detail comment on methods for quantifying the degree of accounting harmony. It stresses on introducing the average distance method, and points out the reason to choose this method. The fourth part does the empirical research in this paper. Firstly, it makes several amendments to the average distance method. Secondly, it works out the degree of harmonization by using this method. By analyzing the results of research, it draws the conclusion that Chinese Accounting Standards highly harmonized with International Accounting Standards, although it still has some differences in the limited sections. In the fifth part, it makes some suggestions on the construction of Chinese Accounting Standards, and points out the principle and the breakthrough point that China should follow during the process of the construction. The sixth part of this paper is the final one. Basing the research of this paper, this part makes the conclusion of this paper, and point out the future orientation of this research.