Chinese GAAP and IFRS: An analysis of the convergence process

Songlan Peng and Joyce van der Laan Smith

Journal of International Accounting, Auditing and Taxation, 2010, vol. 19, issue 1, 16-34

Abstract: In this study, we examine the process of convergence through a longitudinal analysis (1992–2006) of the convergence of Chinese GAAP with IFRS from the perspective of process theory. We find that significant steps toward convergence occurred through the issuance of four successive Chinese GAAPs: 1992, 1998, 2001, and 2006. Convergence occurred both through the direct import of standards from IFRS and progressive changes to Chinese GAAP. Direct import was observed for items either reflective of traditional Chinese accounting practice or ones that addressed situations not considered or not relevant under the previous accounting model. Progressive changes to Chinese GAAP were observed on items substantially different from traditional practice. Overall, we conclude that a combination of staged implementation and direct import has proven to be practical and effective in the convergence of Chinese GAAP with IFRS.

Keywords: Accounting convergence; Transitional economy; China; Accounting standard development (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jiaata:v:19:y:2010:i:1:p:16-34

DOI: 10.1016/j.intaccaudtax.2009.12.002

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