A Research On The Effect Of International Convergence Of Chinese Accounting Standards

The large companies listed in China have used the new accounting standardwhich is equivalent to the International Financial Reporting Standards since2007.Except the long-term asset impairment reversal, Chinese Accounting Standards isequivalent to International Financial Reporting Standards. And at the same time,Chinese Accounting Standards is equivalent to HKAS in2007and EU in2012.Chinese Accounting Standards to some extent is equivalent to International FinancialReporting Standards, which is approved by western countries. However, thecompanies listed both in mainland China and Hong Kong security exchanged still hasthe obligation to publish double annual reports on different accounting standards basis.Therefore, this paper studies the effect of equivalence of International FinancialReporting Standards and Chinese Accounting Standards by the example of A+H listedcompanies.Based on existing research, this paper use descriptive statistics and significanceanalysis to study the difference of International Financial Reporting Standards andChinese Accounting Standards. In addition, this paper use return model and pricemodel to study relevance of accounting information and stock price. The result ofempirical analysis finds that the difference of dual disclosure of A+H dual listedcompanies is of no significance and narrowing in general, which approve theequivalence of Chinese Accounting Standards and International Financial ReportingStandards. The relevance of accounting information and stock value is growing, whileat the same time, such relevance of Chinese Accounting Standards is below that ofInternational Financial Reporting Standards. To sum up, the complete equivalence ofChinese Accounting Standards and International Financial Reporting Standards is farfrom accomplishment, the process of equivalence is still marching.