The Research Of Convergence Between The Accounting Standards For Business Enterprises (2006) And International Accounting Standards

Accounting is an universally international commercial language, it plays a important role in international trades and economic intercommunication. Convergence of accounting has been a issue which accounting academics have paid much attention to in recent years. The international convergence of accounting standards can enhance the comparability of acounting information in the financial reports and strenghten the transparenty. It also has a significant effect on reducing the cost of transaction and financing capital for enterprises. After the International Accounting Standards Committee's reconstructure, it has made many efforts to promote the international convergence of accounting standards. Our country has taken an active part in the international convergence of accounting standards. In Feberay 2006, the Ministry of Finance in China issued the accounting standards for business enterprises(2006), which is the excellent achievement of our accounting reformation. The new accounting standards meets the requirement of market-directed economy in our country, and achieve the substantial convergence on the international accounting standards. It's useful to keep order in the market-directed economy, safeguard the interests of the public investors, and improve the development of ecomony.This paper adopts the empirical analysis to study the international convergence of accounting standards and accounting practice in China. There are six chapters in the paper. The first chapter introduces the background and the significance of the topic, and the research thread of the whole article. The second chapter discusses some related conceptions, such as internationalization, standardization, harmonization, convergence, and so on. The third chapter overviews the development of accounting standards in China, gives a brief summary of the history of accounting reform. The forth chapter focuses on the international convergence of accounting standards in China. It firstly makes a comparable analysis between the accounting standards for business enterprises(2006) in China and the international accounting standards. Then it uses the average distance to measure the degree of international convergence. The fifth chapter makes empirical research of the international convergence of accounting practice in China. It chooses the listed companies which both issue A-shares and H-shares to analysis, makes an hypothesis test to their net earning's difference. The empirical result validates the conclusion that in 2005, 2006 and 2007, there is not material difference betweent A-shares and H-shares. The sixth chapter gives some thoughts about the stategy and implement of the international convergence of accounting.