The Research About The Differences And Convergence Between Chinese Accounting Standards And International Financial Report Standards

The emergence and development of accounting are the result of the progress and advanced of human productivity and socio-economic. With the rapid development of economic globalization and especially the growth of international capital markets, international convergence of accounting standards has become the evolutional tendency of the international accounting. By reviewing the reform and construction of accounting standards in our country, we can find the international convergence of accounting standards is the central issue. Chinese Ministry of Finance has issued a series of enterprise accounting regime and accounting standards. By studying and researching the International Financial Reporting Standards (IFRS), shrink the differences and convergence with the IFRS step by step. In 2006, the Chinese new accounting standards were issued. The new accounting standards are the milestone in the construction of our accounting standards and also are the latest achievements in accounting convergence with IFRS. In that case, it is very impossible for us to study the differences between the Chinese new accounting standards and IFRS by the condition of their convergence in the main.This paper does the rational study for the main differences between the Chinese new accounting standards and IFRS by using the method of comparison and bibliography after discussing the concept of conversance of accounting standards and the reason of differences in accounting standards in different countries. First of all, compare the difference between the basic accounting standards and Framework for the Preparation and Presentation of Financial Statements and then specially analysis the difference between the specific accounting standards, including fixed asset standard, the standard of governmental subsidies, the standard of the impairment of asset and merger of enterprise standards. Secondly, the paper does the practice study of the difference between the Chinese accounting standards and IFRS. Look into the financial report of 17 enterprises that issue the share in Hong Kong capital market, coagulate the different amount of net income on the base of the different accounting standards and find the main accounting reason caused to this difference. Finally, the paper analysis the disadvantageous influences of this difference and represent the advice for conversance of our accounting standards and IFRS in the future.