Research On Extent For International Convergence Of Enterprise Accounting Standards

Accounting, a kind of commercial language, dose not only show the state of operation of the enterprise, but also functions as an important medium that connects the domestic market and the international market. Therefore, it has been a hot research topic for the accounting academia to apply a universally used and accepted accounting method. The Ministry of Finance of the Peoples'Republic of China promulgated the "Enterprise Accounting Standards" on February 15,2006, requiring all the listed companies to fully obey and implement the new guidelines. "Enterprise Accounting Standards" of one basic principle and thirty-eight new concrete guidelines, basically covering most parts of the current international financial advisory principles. In the new accounting system, most of the principles are in accordance with the International Financial Reporting Standards, with an exception of a small amount of items of guidelines formulated based on China's special condition. But the similarities shown in the form can't indicate the identification in the quality of the principles. Namely, it is uncertain whether the quality of accounting information is improved with the enhancement of the international comparability of accounting. To solve this problem, many scholars have adopted the normative study combined with the empirical research methods. However, no consistent conclusions have been reached yet.Firstly, this paper examined comparability between the Enterprise Accounting Standards and International Accounting Standards. Based on the difference between the "Enterprise Accounting Standards" of 2006 and International Financial Reporting Standards, by using the statistical methods and non-parametric Wilcoxon test and T test parameters, we compare the disclosure of differences of double net profit between the Shenzhen and Shanghai stock listed companies AB before and after the "Enterprise Accounting Standards" were brought into effect, which can be used to verify the comparability of accounting information of international convergence of accounting standards. Secondly, based on verifying comparability between domestic and international accounting standards, that is, enterprises tents to be international convergence of accounting standards, we use the financial data, which are from the previous two years and the later two years after the implementation of "Enterprise Accounting Standards", to test the relevance of account information, and then test whether the international accounting standards and international accounting standards convergence is achieved the expected goals.In this study, we find when the comparability of Enterprise Accounting Standards enterprises improve, the relevance of accounting information also improve, thus we can get a conclusion:International Convergence of "Enterprise Accounting Standards" to achieves the desired goals.