IFRS or IFRS-Based Domestic Standards: Implications for China’s Future Accounting System
الموضوعات :
Muhammad Umar Draz
1
(Faculty of Business and Information Science, UCSI University, Kuala Lumpur, Malaysia)
الکلمات المفتاحية: Accounting reforms, China, Convergence, Environmental determinism theo, IFRS,
ملخص المقالة :
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.
