Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

IFRS and convergence in China and the USA

IFRS and convergence in China and the USA Purpose – The purpose of this paper is to perform a brief examination of International Financial Reporting Standards (IFRS) and the progress towards IFRS convergence in the accounting environments of China and the USA, providing useful information on the current status and future of IFRS convergence in these countries. Design/methodology/approach – A range of IFRS‐related literature from 1993 to 2013 was analyzed to provide the current status of IFRS and to determine the past, present and future of IFRS convergence in the country examinations. Findings – IFRS convergence and adoption has occurred on a global scale due to the call for a single set of standards. China's most significant obstacles include training accounting professionals and becoming more involved in the International Accounting Standards Board (IASB) standard setting process. The USA's most significant obstacle is completing the Securities and Exchange Commission roadmap milestones, which will progressively move the accounting industry towards IFRS convergence. Research limitations/implications – These findings have been limited to an overview of IFRS convergence and adoption within China and the USA. Additional research opportunities exist by examining how successful countries have been in protecting individual economic interests by working with the IASB in the standard setting process for the IFRS, as opposed to being passive in the process. One economic indicator that should be examined is foreign direct investment, which has major impacts on country development and can be influenced by financial standards such as IFRS. Practical implications – China and the USA both have milestones identified in this paper that will need to be reached before benefits may be reaped from the converging to IFRS. Originality/value – These findings show that IFRS standards are being implemented globally in many nations, providing a common set of reporting tools to businesses and investors. Through these standards, China and the USA are working to be even more competitive forces in financial markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Technology Management in China Emerald Publishing

IFRS and convergence in China and the USA

Randy Moser
Journal of Technology Management in China , Volume 9 (1): 11 – Apr 1, 2014
Download PDF
11 pages

Loading next page...
 
/lp/emerald-publishing/ifrs-and-convergence-in-china-and-the-usa-jD8rt08FUc
Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1746-8779
DOI
10.1108/JTMC-12-2013-0042
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to perform a brief examination of International Financial Reporting Standards (IFRS) and the progress towards IFRS convergence in the accounting environments of China and the USA, providing useful information on the current status and future of IFRS convergence in these countries. Design/methodology/approach – A range of IFRS‐related literature from 1993 to 2013 was analyzed to provide the current status of IFRS and to determine the past, present and future of IFRS convergence in the country examinations. Findings – IFRS convergence and adoption has occurred on a global scale due to the call for a single set of standards. China's most significant obstacles include training accounting professionals and becoming more involved in the International Accounting Standards Board (IASB) standard setting process. The USA's most significant obstacle is completing the Securities and Exchange Commission roadmap milestones, which will progressively move the accounting industry towards IFRS convergence. Research limitations/implications – These findings have been limited to an overview of IFRS convergence and adoption within China and the USA. Additional research opportunities exist by examining how successful countries have been in protecting individual economic interests by working with the IASB in the standard setting process for the IFRS, as opposed to being passive in the process. One economic indicator that should be examined is foreign direct investment, which has major impacts on country development and can be influenced by financial standards such as IFRS. Practical implications – China and the USA both have milestones identified in this paper that will need to be reached before benefits may be reaped from the converging to IFRS. Originality/value – These findings show that IFRS standards are being implemented globally in many nations, providing a common set of reporting tools to businesses and investors. Through these standards, China and the USA are working to be even more competitive forces in financial markets.

Journal

Journal of Technology Management in China – Emerald Publishing

Published: Apr 1, 2014

Keywords: China; USA; Adoption; IFRS; Accounting; International business; Convergence; GAAP

References

  • Accounting for China
    Adhikari, A.; Wang, S.Z.
  • International financial reporting standards (IFRS): pros and cons for investors
    Ball, R.
  • The impact of financial reporting on equity versus debt markets: macroeconomic evidence from mandatory IFRS adoption
    Beneish, M.D.; Miller, B.P.; Yohn, T.L.
  • IFRS challenges for US practitioners
    Bunting, R.L.; Frank, F.
  • On the global acceptance of IAS/IFRS accounting standards: the logic and implications of the principles‐based system
    Carmona, S.; Trombetta, M.
  • Accounting exec: ‘improve Chinese accounting ranks’
    Chipman, S.M.
  • Comparability and convergence between IASB‐IFRS and regional‐IFRS
    Chunhui, L.; O'Farrell, G.
  • Home bias, foreign mutual fund holdings, and the voluntary adoption of international accounting standards
    Covrig, V.M.; Defond, M.L.; Hung, M.
  • Mandatory IFRS reporting around the world: early evidence on the economic consequences
    Daske, H.; Hail, L.; Leuz, C.; Verdi, R.
  • Listing of foreign securities on US exchanges
    Edwards, F.R.
  • A Roadmap for Convergence Between IFRSs and US GAAP – 2006‐2008 Memorandum of Understanding Between the FASB and the IASB
    FASB
  • Completing the February 2006 Memorandum of Understanding: A Progress Report and Timetable for Completion September 2008
    FASB
  • International Convergence of Accounting Standards – A Brief History
    FASB
  • Project Roster & Status
    FASB
  • IFRS in the United States: challenges and opportunities
    Gornik‐Tomaszewski, S.; Showerman, S.
  • Cultural and economic influences on current accounting standards in the People's Republic of China
    Graham, L.E.; Li, C.
  • On the construction of China's accounting standard system with international convergence in accounting standards
    Hongman, Z.; Xianfeng, L.
  • About the IFRS Foundation and the IASB
    IFRS
  • Application Around the World Jurisdictional Profile: People's Republic of China
    IFRS
  • IFRS FAQs
    IFRS
  • University Professors Weigh in on Building IFRS into Curricula: Small Number of Universities Will be Ready for 2008‐2009 Academic Year, According to KPMG‐AAA Survey
    KPMG‐AAA
  • IFRS adoption around the world: has it worked?
    Outa, E.
  • An ‘accounting revolution’ is brewing in China
    Pacter, P.
  • BrainyQuote.com
    Pasteur, L.
  • Chinese GAAP and IFRS: an analysis of the convergence process
    Peng, S.; van der Laan Smith, S.
  • Convergence flaws
    Reilly, D.
  • Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by US Issuers
    SEC
  • How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation
    SEC
  • Slack and the performance of state‐owned enterprises
    Stan, C.; Peng, M.W.; Bruton, G.D.
  • IFRS and the accounting consensus
    Sunder, S.
  • Convergence: businesses and business schools prepare for IFRS
    Thomas, J.
  • The Global Accounting Experiment
    Veron, N.
  • Accounting standards in the People's Republic of China: responding to economic reforms
    Winkle, G.M.; Fenwick Huss, H.H.; Chen, X.
  • The evolution of US GAAP: the political forces behind professional standards
    Zeff, S.A.
  • The evolution of US GAAP: the political forces behind professional standards
    Zeff, S.A.