A Study On The Convergence Degree Of IFRS In Transitional Economies And Its Influencing Factors

With the rapid flow of cross-border trade, the in-depth development of economic globalization, the global adoption of IFRS has become an inevitable trend. The economic consequences of accounting standards (Zeff,1978) have an impact on the investment decisions of businesses, governments, trade unions, investors and creditors, so that all the countries in the world try to seek to achieve their own maximized benefits and seek the right to speak in the formulation of IFRS. Right now, The United States, the European Union and other developed economies occupy a dominant position in the formulation process of the International Financial Reporting Standards, while China and other transition economies just have passive convergence of accounting standards in convergence process, mainly to reduce the cost of two differences based accounting system. Driven by the trend of globalization, countries with economies in transition gradually to take measures to achieve the convergence to IFRS.China is in a critical period of transition, especially after joining the WTO, the rapid development of international trade and cross-border capital investment, how to deal with the cost of communication due to differences of accounting standards, we must face the reality of the problem.This paper attempts to find the connection between the transformation degree of transition countries and the IFRS convergence degree, combined with China’s specific situation, we try to make recommendations on how to improve the convergence of the extent of China’s accounting standards. Finally we suggests policy recommendations on how to enhance the extent of international convergence,China should continue to strengthen the implementation of IFRS in financial institutions,to promote the national language translation of IFRS version, to strengthen the building of regional integration, as well as continue to promote their transformation.