Advanced

Accounting harmonization in China - A comparison of A-share and H-share reported earnings

Zhu, Ning; Li, Juan and Wang, Chien-Ming (2009)
Department of Business Administration
Abstract
This study provides a comprehensive assessment of the harmonization of Chinese GAAP (2006) with IAS, and focuses on the earning gap differences based on industry categorization. We summary the main findings in our researches: (1)The research result of 2006 was consistent with the prior study that Chinese GAAP based net income was lower than IFRS based net income. (2)Our research finding for 2007 that the earning gaps were eliminated notably as the advent of new Chinese GAAP was supported by our descriptive statistics (3)Under the industry classification, our findings are both supported by the figure description and descriptive statistics with the conclusions that different industry has different level of convergence with IAS.
(4)Under the... (More)
This study provides a comprehensive assessment of the harmonization of Chinese GAAP (2006) with IAS, and focuses on the earning gap differences based on industry categorization. We summary the main findings in our researches: (1)The research result of 2006 was consistent with the prior study that Chinese GAAP based net income was lower than IFRS based net income. (2)Our research finding for 2007 that the earning gaps were eliminated notably as the advent of new Chinese GAAP was supported by our descriptive statistics (3)Under the industry classification, our findings are both supported by the figure description and descriptive statistics with the conclusions that different industry has different level of convergence with IAS.
(4)Under the research of accounting items in each industry for data analysis, we found out that the earning gaps between Chinese GAAP and IAS are caused form the environmental factors such as government regulation and industry characteristics in China. We would conclude that the new Chinese GAAP has been converged with IAS in a certain high degree, even though there might be some convergence spaces between these two standards, the accounting differences would not be fully erased due to the national regulations and industry features. (Less)
Please use this url to cite or link to this publication:
author
Zhu, Ning; Li, Juan and Wang, Chien-Ming
supervisor
organization
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Företagsledning, IAS, Management of enterprises, Chinese GAAP, Accounting Harmonization, Earning Gaps, Industry Classification, management
language
Swedish
id
1437597
date added to LUP
2009-06-08 00:00:00
date last changed
2012-04-02 17:34:31
@misc{1437597,
  abstract     = {This study provides a comprehensive assessment of the harmonization of Chinese GAAP (2006) with IAS, and focuses on the earning gap differences based on industry categorization. We summary the main findings in our researches: (1)The research result of 2006 was consistent with the prior study that Chinese GAAP based net income was lower than IFRS based net income. (2)Our research finding for 2007 that the earning gaps were eliminated notably as the advent of new Chinese GAAP was supported by our descriptive statistics (3)Under the industry classification, our findings are both supported by the figure description and descriptive statistics with the conclusions that different industry has different level of convergence with IAS.
(4)Under the research of accounting items in each industry for data analysis, we found out that the earning gaps between Chinese GAAP and IAS are caused form the environmental factors such as government regulation and industry characteristics in China. We would conclude that the new Chinese GAAP has been converged with IAS in a certain high degree, even though there might be some convergence spaces between these two standards, the accounting differences would not be fully erased due to the national regulations and industry features.},
  author       = {Zhu, Ning and Li, Juan and Wang, Chien-Ming},
  keyword      = {Företagsledning,IAS,Management of enterprises,Chinese GAAP,Accounting Harmonization,Earning Gaps,Industry Classification,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Accounting harmonization in China - A comparison of A-share and H-share reported earnings},
  year         = {2009},
}