The different impacts on accountants and corporations in China for international harmonization of accounting standards



Abstract

International harmonization plays an increasingly key role all over the world in nowadays. With the developing of economy, there are more trades between two foreign companies with different system of accounting statements. While international harmonization of accounting is gaining momentum in recent years, there is little empirical evidence on whether the harmonization of accounting standards leads to harmonized accounting practices and comparable financial reports. Benefiting from a unique research opportunity in China, this study provides such evidence. The paper produces a literarure review and methodology explains the international harmonization of accounting standards and its impact on accountants and corporations in China.

Table of contents

Abstract2

Chapter I4

Introduction4

Aim6

Objectives6

Chapter II7

Literature review7

ChapterIII26

Study design and dataError! Bookmark not defined.

Value relevance to equity valuation and stock returnsError! Bookmark not defined.

Sample selection and data collectionError! Bookmark not defined.

Empirical resultsError! Bookmark not defined.

Table 1 presents a summary of the growth of the two stock exchanges in China in the last decade. The Chinese stock market is now one of the most rapidly growing capital markets in the world .Error! Bookmark not defined.

Value relevance to B-share marketError! Bookmark not defined.

Chapter IV36

References41

Appendix50

The different impacts on accountants and corporations in China for international harmonization of accounting standards

Chapter I

Introduction

Global harmonization of accounting has been profiting impetus in latest years. Some investigations supply clues on the advancement of harmonization by matching accounting standards. However, institutional dissimilarities in infrastructure, heritage, lawful obligations, and socioeconomic and political schemes may lead to noncomparable accounting figures regardless of alike accounting standards. The Securities and Exchange Commission's Concept Release on International Accounting Standards (SEC File No S7-04-00) expressly raises this anxiety when contemplating use of IAS by non-U.S. businesses yearning to list in the U.S. However, direct empirical clues on this topic is rare. We use a exclusive study opening in China to analyze if the harmonization of accounting measures rises the comparability of described figures (Baker,C. Biondi, Y. and Zhang, Q. 2010) Global harmonization plays a big and key role world wide in modern days as well as developing countries, such as China.

With the growth of economy, there are more trades between two foreign organizations with different system of accounting statements. Therfore accounting principles has tended to global harmonization as well as. In 1979, China's development and opening-up new principles and policies to be carried out. The Accounting Standards in China had been made by a great pace with the effect of development of IAS, even though it is extremely tricky for China to follow the global phases with various type systems of financial plans with that of the United Kingdom or` United states (Alford et al., 2006). From 1989 (China has developed its initial accounting committee-CASC) to 1998, just nearly 8 years, China became a member of the IASC and an IASC Board meeting was held in Beijing. The Chinese administration gives its support for the IASC. Since then the CASC follows the phases of IASC to expand the ...