Convergence of Chinese Accounting and Reporting Standards with IFRS: Particularities, challenges, and prospects

Abstract

Subject. This article analyzes the reasons why China chooses convergence with international accounting standards, as well as the problems arising in the transition to the internationalization of the Chinese accounting standards, and the prospects for further development of the Chinese accounting. Objectives. The article aims to analyze the reasons for the internationalization of the Chinese accounting standards and offer recommendations on the problems that can be encountered in this process. Methods. For the study, I used analysis, synthesis, and other general scientific methods. Conclusions. In the process of convergence of the Chinese accounting standards with the international ones, experts proceed from national conditions, learning new things, acquiring advanced knowledge. The convergence of China's accounting standards with international practice is currently undergoing continuous improvement and development. In order to stimulate exchanges, raise capital and reduce communication costs, China must keep pace with the development of the world situation and establish solid market economic and corresponding accounting systems.