A Research On The Effect Of International Harmonization Of China Accounting Standards

With the economic globalization and the acceleration of information technology revolution, accounting - which is the generally accepted commercial language, plays an important role in the aspect of international trade, international capital flow and international economic exchange. In order to right decision making, capital market participant need such financial information as high quality, more transparent and more comparable. The international harmonization of accounting standards is always a focus of research.For a long time, we put main energy on the aspects below: (1) the rationality of co-exiting of the accounting internationalization and Chinese characteristic; (2) the research on the policy trend of accounting internationalization; (3) the evaluation of the effect of accounting internationalization. With the issuance and impletion of the new accounting standards, it indicates that we have established accounting standards which is sufficient - convergence with international accounting standards and it also make clear our standpoint in the two problem above .Now we change our focus point in the third aspect - the effect of accounting internationalization or whether formal convergence brings out substance convergence. From the one of the themes of the 2009 academic annual meeting of china accounting institution and the solicit articles of the thirtieth memorial activity of the Chinese accounting reform and open we can see the significance of the research.Based on the literature summarization and commentation, this dissertation definite the concept of the international harmonization and the effect of international harmonization.Elaborate the develop stage of china accounting standards (CAS). Attempt to explain the reasons of choosing International Financial Reporting Standards (IFRS) as the primary yardstick in the process of accounting harmonization in China. Based on the 2006 accounting standards, the dissertation systematically elaborates on the harmonization between CAS and IFRS qualitatively from two aspects: Firstly compares IFRS with CAS in system, then scope of accounting standards and concept framework. Then, by using qualitative Method, analyze the difference of the net asset and net profit between IFRS and CAS .What's more, we also have a study on the information relevance from the aspect of different market. Our conclusion is that the form harmonization between CAS and IFRS has achieved, but substance harmonization has to be reinforced. From this conclusion we can know that the problem of insufficient harmonization lies not in the accounting standards itself, but in the inefficient implementation mechanism. Under the foundation of empirical study, this article proposes suggestions: First should strengthen market supervision; second should improve Corporate Governance structure; thirdly, fosters and standardizes audit market; finally raise the investors' knowledge level and enhance the law consciousness and raise the capability of professional judgment of the accountants.The first innovation of this article is that it analyzed the effect of international harmonization of accounting standards from the aspect of A-H listed company based the new accounting standards; the second is, in the empirical part, not only the difference between net asset and net profit is analyzed, whose purpose is to analyze formal harmonization from the aspect of technique factor, but the value relevance in different market - substance harmonization is also involved.