28 January 2019, AT 2:30 PM
ESCP - Campus République - room
The Convergence of Chinese Accounting Standards with International Accounting Standards
Jury
Thesis directors:
- Pr. Léon LAULUSA,
Professor, ESCP
Referees:
- Pr. Lionel ESCAFFRE,
Professo, Université d'Angers - Pr. Olivier RAMOND,
Professor, Université Paris-Dauphine
Suffragants :
- Pr. Gilles DAVID,
Professor, Université de Bourgogne - Pr. Yvon PESQUEUX
Professor, Conservatoire National des Arts et Métiers
Abstract
Our empirical investigation comprises two basic sets of analyses. The first set of analyses examines the accounting differences between IFRS and new Chinese GAAP on key accounting measures such as book value of equity and net income. The result of our empirical tests shows that both the difference of net income and the difference in asset recognition across the two systems are not significant, which implies the good convergence of accounting numbers reported under new Chinese GAAP and under IFRS. These findings make exactly a good answer to our first research question. The second set of analyses compares the financial reporting quality under new Chinese GAAP and IFRS. The results of our hypotheses tests show that, consistent with the different objectives of two accounting systems (new Chinese GAAP puts strong emphasis on reliability and prudence whereas IFRS is more investor-oriented), IFRS provide more value relevant and predictive accounting information than new Chinese GAAP (weak evidence), whereas there is more earnings smoothing, less discretionary accruals, more observed conservative accounting approaches, more timely recognition of losses and more comparative accounting information under new Chinese GAAP than those under IFRS (strong evidence). Furthermore, our results are in line with IFRS being balance sheet- and fair value-orientated and new Chinese GAAP being prudent, income smoothing- and historical cost-oriented. The findings provide an affirmative answer to our second research question.
Given the influential status of China as an emerging economy, the findings of our study have important implications for other emerging economies around the world. And also, our results inform Chinese and international standards setters China’s IFRS harmonization (convergence) strategies in the future.
Lieu
Organiser:
Paris - France
MapDate
Date de début : 28/01/2019
Heure de début : 2:30 PM
Heure de fin : 6:30 PM