A Comparison Of Chinese Accounting Standards And International Financial Reporting Standards

Abstract

Twenty-five years ago, the Chinese accounting system was not like it is today. Globally recognized international accounting standards did not exist and, understanding there were problems with financial reporting in China, the Chinese government started issuing the first Chinese accounting standard since the 1970s. This standard was based on International Accounting Standards, the predecessor standards to International Financial Reporting Standards (IFRS). In 2005, China announced plans to converge its accounting standards with IFRS and expected all companies in China to adopt IFRS by 2011. On November 24, 2015, the Chinese Ministry of Finance and the IFRS Foundation announced the establishment of a working group to explore further the use of IFRS in China.