Accounting Convergence

1. Introduction
Economic globalization has resulted in a global economic integration process. Following the development trends of economic globalization, economic communication is becoming more and more frequent. The language of accounting such as financial report used by international society generally, plays an important role in the process of economic globalization. At the same time the people involved are having a higher demand for it. Bushman (2003) argues the quality of the accounting information, especially the reliability and comparability often directly determine the quality and consequences of market transactions. Also the quality of the accounting information affects the efficient allocation of global resources. However, accounting …show more content…
Other people use accounting is just about financial reporting as a communications exercise, providing investors and other market participants with high quality, decision-useful financial information. Overview the current research on the problem of international convergence of Chinese Accounting Standards can be found with the increasing development of economic globalisation and the acceleration of the international capital market, international standards has caused the wide attention of …show more content…
The main results of the research are determining the accounting principles of Chinese Accounting Standards and International Financial Reporting Standards, methods of measurement and disclosure of accounting information. Chinese Accounting Standards has been basically achieved the convergence with International Financial Reporting Standards. Since the idea international convergence of Chinese Accounting Standards is not very long, the relevant research literatures are relatively small and researches are in a single perspective, mainly discuss the causes of the international convergence of Chinese Accounting Standards and its countermeasures. There are few people to explain the economic consequences of international convergence of Chinese Accounting Standards. Although China has achieved convergence of accounting standards with international accounting standards, there are still exist a certain difference with international accounting standards due to the special accounting environment in China. Also the convergence of accounting standards will bring some negative economic consequences to China. This report will discuss the positive and negative economic consequences that the convergence of accounting standards brings to China. On this basis, analyze and propose the principles and strategies of international convergence of accounting standards in