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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

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China On Board The IASB Train?
Location: BlogsAAO Weblog (Public)    
Posted by: Jack Ciesielski 6/29/2005 7:22 AM
The Financial Times reports that on Monday, China's assistant finance minister said "China would "actively promote and accelerate" an effort to bring the country's rules in line with international accounting standards."

If the IASB goals of converging the world's standards into one unified body of accounting law are achieved, and China is on board, that would be pretty much the completion of the mission.

But don't hold your breath. The provincialism shown by European countries has been breath-taking and a huge impediment to the IASB's progress. Throw an 800-pound Chinese gorilla into the mix, and maybe you've got the makings of eternal gridlock.

As Sir David Tweedie, the IASB chairman pointed out: "They have particular problems in China that don't exist anywhere else ... "How do I deal with fair value when a share is traded in Shanghai and Hong Kong with prices that are one-third different? I don't know," he said. It was also unclear how Chinese companies would account for assets whose prices were determined by the state.
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