An Empirical Research On The International Convergence Of China Enterprise Accounting Standards

In November 1992, the Ministry of Finance issued the "Accounting Standards for Enterprises- Basic Standards", and in January 1, 1993 began to implement. With the rapid development of economy and the accelerating process of globalization, it is urgent to revise the standard. In February 15, 2006, the Ministry of Finance issued the revised "Accounting Standards for Enterprises- Basic Standards" and 38 specific accounting standards. And provides the first in January 1, 2007 in the implementation of the listing Corporation. The establishment and implementation of the new accounting standards system provides a broader international platform for the exchange and use of accounting information, and realize the substantive convergence of China’s Accounting Standards and International Financial Reporting Standards.Until now, the Ministry of Finance has released 1-8 the accounting standards for enterprises notice explained, and five annual notices and a plurality of accounting treatment provisions and reply. In 2010 April, the Ministry of Finance in the release of the "China Accounting Standards and International Financial Report Criterion Convergence Road Map" is proposed, in the hope that relevant departments according to the requirements of the roadmap, combined with the actual situation of China’s emerging market and transition economies, more deeply involved in the formulation of International Financial Reporting Standards, actively promote the China Accounting Standards for Business Enterprises sustained international convergence, for the establishment of a unified global high quality accounting standards contribute. From January 2014 to July, the Ministry of Finance has issued eight new or revised accounting standards for enterprises. Amendments and additions to the existing enterprise accounting standards system are carried out.With the promulgation of the new accounting standards in 2007, the China Securities Regulatory Commission canceled the AB shares of the listing corporation and the financial listing corporation, as well as the dual disclosure and double audit provisions. But the SFC has yet to approve the AH shares of listed companies only disclose the financial reports and audit reports in accordance with Chinese Accounting Standards. Therefore, so far, AH shares of listed companies should still dual disclosure and dual audit in accordance with International Financial Reporting Standards and China’s Enterprise Accounting Standards. Due to the balance sheet, income statement, cash flow statement is an important part of the financial statements, and net assets, net profit, operating activities cash flow of the financial indicators is reflect and analyze the comprehensive index of enterprise in many aspects. This article through to AH shares of listed companies according to the analysis of China Enterprise Accounting Standards and the International Financial Reporting Standards dual disclosure net assets, net profit, operating activities cash flow differences, and then determine the effect of Chinese enterprises international convergence of accounting standards. However, China’s international convergence of accounting standards for enterprises is not limited in the analysis of specific indicators, only the quality of accounting information are significantly improved, is the ultimate goal of Chinese enterprises international convergence of accounting standards. And earnings conservatism can be a good interpretation of the quality of accounting information. Therefore, this article through the analysis of the earnings conservatism of AH shares of listing Corporation to further determine the effect of international convergence of accounting standards in China.In this paper, AH 2007-2014 listing Corporation as a sample, using empirical methods to test the effect of China’s enterprise accounting standards and international financial reporting standards convergence. This paper in the course of the study of AH shares listed in the annual report of the company’s net assets, net profit, operating activities cash flow of the three financial indicators for descriptive analysis and significance test, and the use of Basu model on Earnings Conservatism of multiple linear regression. Based on the above two aspects, in a step-by-step way to verify the China enterprise accounting standards and international financial reporting standards convergence effect. The results show that the net assets, net profit, operating cash flow difference of the AH shares are reduced, and the earnings conservatism is improved, and the international convergence of accounting standards in China is enhanced.