چکیده:
People’s Republic of China has a long history of accounting and accounting reforms. This study focuses on "whether China should continue its IFRS-based domestic accounting standards or full convergence with the IFRS is more appropriate"? Both quantitative and qualitative approaches are applied to answer the research question of this work. Binary choice model has been used in the statistical analysis because data of two variables shows presence or absence. The results of our model indicate that China’s accounting reforms, including convergence with the IFRS, are significantly associated with the internal and external factors. In the light of our statistical findings and details of the theoretical aspects (i.e. environmental determinism theory, globalization, growth of economy and accounting profession in China and regulatory influence of the Chinese government) this study proposes that China should continue its IFRS-based domestic accounting standards and further convergence with the IFRS should be launched in case of decisive needs only
خلاصه ماشینی:
e. environmental determinism theory, globalization, growth of economy and accounting profession in China and regulatory influence of the Chinese government) this study proposes that China should continue its IFRS-based domestic accounting standards and further convergence with the IFRS should be launched in case of decisive needs only ABSTRACT: .
Keywords: Accounting reforms, China, Convergence, Environmental determinism theory, IFRS INTRODUCTION AND BACKGROUND OF THE STUDY People’s Republic of China (PRC) has a long and splendid history of accounting; Alexander (2002) has noted that the Chao Dynasty’s1 Chinese accounting was more sophisticated than the Nineteenth (19th) century’s double-entry bookkeeping.
g. statistical results about the relationship of financial crises, accounting reforms and foreign investment, the trustworthiness of the IFRS, the basis of having own accounting standards and their current situation, PRC’s cultural aspects, evidence from other nations e.
The initial step taken by PRC for the internationalization of its accounting standards was the accounting regulation of 1998 that showed commitment for harmonizing the Chinese GAAP with the IFRS (Smantser, 2006; Peng, Tondkar, van der Laan Smith and Harless, 2008).
It will be no wonder if the Chinese government retains its IFRS-based domestic accounting standards or diverges from the IFRS in the near future, because the study of Ding, Hope, Jeanjean and Stolowy (2007) proves that divergence has significant positive relationship with the developmet of economy and accounting profession in a country.