On April 2, 2010, the Ministry of Finance released the "Roadmap for the Continued Convergence of China's Accounting Standards for Business Enterprises and International Financial Reporting Standards" (hereinafter referred to as the roadmap). The release of the roadmap is based on summarizing the achievements and experience of my country's accounting reform over the years, combined with the needs of recent international and domestic developments, and is an important plan to further deepen accounting reform, promote the construction of my country's corporate accounting standards and its continued international convergence. and deployment, which is of great significance and far-reaching impact.

1. Background on the release of the roadmap

In 2005, my country has established a corporate accounting standards system that is consistent with the International Financial Reporting Standards (IFRS), and has gradually implemented it since 2007. It has been continuously, steadily and effectively implemented in listed companies and other large and medium-sized enterprises. However, the global financial crisis that began with the U.S. subprime mortgage crisis in 2008 had a greater impact on international accounting convergence and development. The Group of Twenty (G20) Summit and the Financial Stability Board (FSB), established to coordinate the global response to the international financial crisis, have proposed the establishment of globally unified high-quality accounting standards after systematically studying the causes and response strategies of the financial crisis, and hope that the G20 Member states and other relevant countries or regions have accelerated the pace of convergence. In this context, the United States, Japan, Brazil and other countries or regions have expressed their support for the trend of convergence and proposed roadmaps or action plans. China's release of the roadmap is not only in response to relevant initiatives of the G20 and FSB, in compliance with the needs of the new situation of international accounting convergence, but also an important measure to comprehensively deploy the work related to the construction of my country's accounting standards in the next stage. In summary, the introduction of the road map is mainly based on the following three aspects: First, respond to the international financial crisis and respond to the needs of the G20 and FSB initiatives. Although the G20 Summit and the FSB carefully analyzed and summarized the root causes of the financial crisis and believed that the root cause of the financial crisis was the imbalance of economic structure, excessive financial innovation, the negligence of financial institutions in risk management and the absence of financial supervision, they also recognized We recognize the importance of high-quality financial reporting in improving the transparency of financial markets and maintaining the stability of the global economy and financial system, thus emphasizing the need to develop a globally unified set of high-quality accounting standards and strictly implement them to ensure the high quality of financial reporting. The G20 made this requirement clear at its Washington, London and Pittsburgh summits. Accounting standards and their international convergence have transcended the professional field of accounting and become a political issue involving the fiduciary responsibilities of the public. As an important member of the G20 and FSB, China has responded to their initiatives, actively tracked and participated in major revisions of international financial reporting standards, done a solid job in the construction and improvement of my country's corporate accounting standards, and made every effort to promote my country's corporate accounting standards and international financial reporting. The continued convergence of standards has become an inevitable responsibility.

The second is to comply with the international accounting convergence trend of various countries and clarify the need for my country’s convergence attitude. According to statistics, 117 countries and regions in the world, including EU member states, Australia, South Africa, etc., require or allow the adoption of IFRS. Other countries and regions have also introduced routes to converge with IFRS. Figure, especially after the outbreak of the international financial crisis in 2008, has accelerated. The U.S. Securities and Exchange Commission (SEC) launched a draft convergence roadmap for comments on November 14, 2008, and issued a Commission statement on February 24, 2010, reaffirming its commitment to establishing a globally unified set of high-quality accounting With the support of the standards, it has formulated a specific work plan to promote the adoption of IFRS in the United States, and stated that it will make a formal decision in 2011 on whether US listed companies will adopt IFRS. At the working level, the standards convergence projects between the US Financial Accounting Standards Board (FASB) and the IASB are progressing rapidly as planned. The Japan Financial Services Agency officially released a roadmap for Japan's adoption of International Financial Reporting Standards on December 11, 2009, providing voluntary early adoption of "designated international financial reporting standards" for some Japanese listed companies in financial years ending on or after March 31, 2010. Reporting Guidelines provide an actionable framework. Japan will also make a decision around 2012 on the mandatory adoption of International Financial Reporting Standards starting in 2015 or 2016. Another example is that the Brazilian Federal Accounting Commission and the Brazilian Accounting Standards Board signed a memorandum with the IASB on January 28, 2010, announcing that Brazil will strive to eliminate the differences between Brazilian accounting standards and international financial reporting standards by the end of 2010, and achieve all standards in the 2010 annual report. Listed companies and financial institutions prepare consolidated financial statements using Brazilian accounting standards that are consistent with IFRS. In addition, Canada, India, South Korea, etc. have recently made it clear that they will adopt IFRS or converge with IFRS within the scope of public stakeholders or listed companies in 2011. The international convergence of accounting standards has become common knowledge in countries around the world and is being translated into practical actions. As the largest developing country and emerging market economy in the world today, our country follows the general trend of international accounting convergence and promotes the continued international convergence of accounting standards. This is a rational choice made in the context of globalization and is the general trend and trend.

The third is to deepen my country’s accounting reform and deploy the next stage of the construction of my country’s accounting standards.

Over the past 30 years of reform and opening up, my country has been taking a proactive stance, advancing the reform of accounting standards in accordance with the development process of market economy, and striving to achieve coordination and convergence with international financial reporting standards. Especially since 2005, breakthrough progress has been made in the construction, implementation, convergence, and equivalence of my country's accounting standards for enterprises. It has not only achieved international convergence of my country's accounting standards for enterprises, but has also been implemented smoothly and effectively in almost all large and medium-sized enterprises, and has received great attention. Recognized and highly praised by international organizations such as IASB and World Bank. Based on such a good foundation and situation, how to deepen my country's accounting reform in the next step and how to deploy the direction and goals of my country's accounting standards construction are issues of concern to relevant parties at home and abroad, especially after the outbreak of the international financial crisis and the International Financial Reporting Standards This is especially true in the context of ongoing major revisions and adjustments. In September 2009, the Ministry of Finance promptly released a draft roadmap for comments. After repeatedly soliciting opinions, revising and improving it, and receiving affirmation from many parties, the Ministry of Finance officially released the roadmap, clarifying the direction for the next step in the construction of corporate accounting standards in my country. , that is, based on the existing convergence results, we will make every effort to promote the continued convergence of my country's corporate accounting standards and international financial reporting standards, so as to make arrangements for my country's future accounting standards work.

2. The significance of releasing the road map

The world today is in a period of great development, change and adjustment. The world's multipolarization and economic globalization are developing in depth, the impact of the international financial crisis continues to emerge, the international political and economic landscape has undergone profound changes in the post-financial crisis era, and the reform of the international financial regulatory system is actively advancing. According to statistics, in 2009, my country's total GDP reached 33.5 trillion yuan, making it the world's third largest economy and contributing 50% to world economic growth that year. After years of development, especially the last 30 years of reform and opening up, our country has integrated into the world economic system and become an important force in it. Issuing a roadmap to actively promote the continued convergence of my country's corporate accounting standards and international financial reporting standards is an important opportunity for my country to seize the current economic and social development, an important measure to ensure the long-term stable and sustainable development of our economy, and an initiative for my country to assume international responsibilities , the specific performance of actively participating in the reform of the international financial regulatory system and effectively maintaining the stability of the global economic and financial system, its significance is obvious.

(1) The release of the roadmap will help improve the transparency of my country’s accounting information and assume global public accountability responsibilities. Accounting information is a public product. The quality and transparency of accounting information not only affects the stability and development of the entire financial market, but also affects the decision-making and benefit distribution of thousands of investors, creditors and the public, involving To the effective flow of international capital, the healthy development of international trade and the maintenance of social public interests. According to statistics, since my country's reform and opening up in 1978, it has utilized more than 900 billion U.S. dollars in foreign investment and has about 670,000 foreign-invested enterprises. It is one of the countries that attracts the most foreign investment in the world; in 2009, there were 77 enterprises in my country. Listed on 9 overseas markets including the Hong Kong Main Board, Nasdaq, and New York Stock Exchange, the total amount of funds raised reached 27.14 billion U.S. dollars. It is one of the countries that has raised the most money and has the fastest growth from the international capital market in recent years; in 2009, my country entered the The total export trade reached 2.20727 billion yuan, accounting for more than 8% of the total global import and export trade, and the total international trade volume ranked first in the world. Our country's economy has been closely connected with the world economy, our country's development has involved the interests of all parties, and the quality of our country's corporate accounting information has attracted global attention. In this context, our country has released a roadmap to clarify the direction of continued international convergence of corporate accounting standards, effectively improve the transparency of accounting information, assume global public accountability responsibilities, and safeguard the interests of social public security. This is our country's responsibility as a responsible country. The concrete manifestation is an important way for our country to follow internationally recognized rules, actively participate in international affairs, and play a constructive role.

(2) The release of the roadmap will help promptly report my country’s special accounting issues to the IASB and enhance the recognition, authority and practical operability of international financial reporting standards. In order for IFRS to become a globally unified high-quality accounting standard, it should be globally recognized and of high quality, and should fully take into account the actual conditions of countries around the world, especially major economies. After the outbreak of the financial crisis, the IASB is making major reforms to important accounting standards projects such as fair value measurement, financial instruments, insurance contracts, financial statement presentation, and consolidated financial statements. These reforms will have a greater impact on my country's current accounting practices. . As the world's largest emerging market and economy in transition, our country has many new transactions, new situations, and new problems. The release of a roadmap clarifies the principle of continued international convergence but interaction of my country's corporate accounting standards, which is conducive to my country's all-round and multi-level participation in international financial reporting on the basis of timely tracking and in-depth study of the latest changes in international financial reporting standards and their impact. The formulation of standards enables the International Financial Reporting Standards to fully consider my country’s actual conditions and needs in the formulation process, especially the special accounting issues involved in the start-up and transformation of the market economy, thereby improving the quality of International Financial Reporting Standards and global Recognition.

(3) The release of the roadmap will help strengthen our country’s government accounting supervision and maintain economic and financial stability and development.

An important revelation from the current international financial crisis is that a free competitive market economy and necessary government supervision are indispensable, and the latter is becoming increasingly important. A healthy and orderly market economy requires the government to assume more public responsibilities, strengthen public management functions, establish and improve fair and orderly market rules, and conduct appropriate and necessary supervision of market behavior and market economic order. . Accounting standards are important basic systems and technical rules for the operation of the market economy. Publish a roadmap and promote the continued international convergence of my country's corporate accounting standards, thereby continuously improving the quality of my country's corporate accounting standards and helping to strengthen government accounting supervision, especially the implementation of accounting standards. Supervision and inspection of the quality of accounting information is an important aspect of improving the government's economic management level under market economy conditions and giving full play to the government's role in maintaining market fairness and efficiency. It is also an important aspect of improving my country's financial regulatory system and promoting economic and financial stability and market stability in my country and the world. Basic engineering for improving efficiency.

3. The main contents of the roadmap

The roadmap is based on a comprehensive review and summary of the experience and achievements in the construction, convergence, implementation and equivalence of my country’s corporate accounting standards since 2005. On the above, the direction, strategy and timetable for the continued convergence of my country's corporate accounting standards and international financial reporting standards are proposed. Its main contents include the following aspects:

First, it is emphasized that my country's corporate accounting standards have achieved convergence with International Financial Reporting Standards, and continued convergence is a subsequent convergence based on the existing convergence.

The roadmap clearly states that my country’s current corporate accounting standards have achieved convergence with international financial reporting standards. On November 8, 2005, the China Accounting Standards Committee (CASC) and the IASB signed a joint statement also stating that China's corporate accounting standards system has achieved convergence with international financial reporting standards. Not only that, as of December 31, 2009, this set of corporate accounting standards system has been implemented in all listed companies and non-listed large and medium-sized enterprises in 35 provinces, autonomous regions, municipalities, and cities under separate state planning (including Xinjiang Production and Construction Corps). By the end of this year, the Accounting Standards for Business Enterprises are expected to be fully covered by all large and medium-sized enterprises in my country. It is precisely because of the convergence and effective implementation of my country's corporate accounting standards that we have proposed the goal of continued convergence, which is the subsequent convergence and development based on the existing convergence.

Second, affirm the reform measures taken by the IASB in response to the international financial crisis and support the IASB's efforts to establish globally unified high-quality accounting standards.

After the outbreak of the international financial crisis, the relationship between the financial crisis and fair value and related accounting standards has aroused great controversy in the international community. Accounting standard-setting bodies such as the IASB and FASB are facing A lot of pressure. Although both the U.S. Securities and Exchange Commission (SEC) and the G20 Summit ultimately concluded that fair value and related accounting standards were not the root cause of the financial crisis, they both proposed ways to improve the quality of accounting standards and increase the transparency of accounting information in the post-financial crisis era. The core content is to improve the governance structure of the IASB and establish globally unified high-quality accounting standards under an independent standard-setting process.

In accordance with the requirements of the G20 and the FSB, the IASB has been actively studying relevant accounting issues exposed in the financial crisis since 2008. To this end, it has done a lot of work to improve international standards, which is worthy of recognition. For example:

(1) In December 2008, the IASB established the Financial Crisis Advisory Group, which attracted leaders and experts in the financial field to join in to conduct in-depth discussions on accounting reform countermeasures under the financial crisis, and released it in July 2009. Relevant reports were issued and the system put forward suggestions for improving financial reporting in response to the financial crisis.

(2) On May 28, 2009, the IASB issued a draft for comments on the fair value measurement standards. Afterwards, it adopted various channels to listen to opinions from all walks of life and revised and improved the fair value measurement standards. It is planned to be published in 2010. The final standards will be released in the third quarter of 2020 to provide a unified set of guidelines for fair value measurement, and will also provide educational materials to guide practical operations.

(3) Actively promote comprehensive projects to reduce the complexity of financial instrument accounting standards and comprehensively revise financial accounting standards. On November 12, 2009, the IASB issued "International Financial Reporting Standard No. 9 - Financial Instruments", completing the first phase of solving the measurement and classification issues of financial assets; on November 5, it released the second phase of "Financial Reporting Standards No. 9 - Financial Instruments". Tool: Amortized Cost and Impairment" (draft for comments), which aims to improve the accounting treatment method for financial asset impairment in view of the procyclical issues involved in amortized cost measurement and financial asset impairment. The IASB also plans to release the third phase of consultation draft in the second quarter of 2010 to simplify hedging accounting treatment issues.

(4) Reorganize the accounting standards for consolidated financial statements, revise relevant concepts and scope of consolidation, clarify accounting treatment issues for off-balance sheet businesses and special purpose entities, and plan to issue new consolidation standards before the end of 2010 ;

(5) Accelerate the formulation or revision of accounting standards items such as insurance contracts, financial statement presentation, revenue recognition, leasing, etc.

The roadmap clearly states that China highly appreciates and fully affirms the IASB's efforts to respond to the international financial crisis and implement the requirements of the G20 and FSB, and will continue to support the IASB's commitment to the formulation of globally unified high-quality accounting standards. . The above-mentioned reforms of the International Financial Reporting Standards by the IASB will change the basis for international convergence of my country's current corporate accounting standards. The roadmap puts forward the requirements for the continued convergence of my country's accounting standards, which also echoes these changes from another aspect and supports international standards. the basic direction of reform.

Third, clarify my country’s stance on international convergence of corporate accounting standards and insist that continued convergence is based on international interaction.

In today's world, there are two broad stances on the international convergence of accounting standards. One is the "direct adoption" strategy, which means copying the International Financial Reporting Standards verbatim; It is a "convergence" strategy, that is, maintaining consistency with International Financial Reporting Standards in terms of accounting principles and substance. The road map clarifies my country’s basic position on the international convergence of accounting standards, that is, adhering to the position of “convergence” rather than “direct adoption” and adhering to the principle that “convergence does not mean equivalence, and convergence should interact.” This is due to my country’s special political and economic conditions. , legal and cultural environment, and are in line with the current legal framework and regulatory requirements such as my country’s Accounting Law.

We believe that the actual situation of developing countries, especially emerging market economies, must be fully considered in the formulation process of IFRS. Only in this way can IFRS truly achieve its high quality and authoritativeness and global recognition. At the same time, China also needs to actively participate in the formulation process of international financial reporting standards in an all-round way to enhance my country's voice and influence in the formulation of international standards. The Ministry of Finance has done a lot of work in this regard. For example, the Ministry of Finance has established a regular meeting mechanism with the IASB twice a year. Starting from this year, it will be upgraded to high-level convergence talks, focusing on discussing the direction of international standards reform and specific standards projects. issues of major concern to China. At the same time, there are already Chinese representatives at multiple levels of international standard setting such as the IASB, the International Financial Reporting Standards Foundation (IASCF) and the International Financial Reporting Standards Advisory Committee (SAC). The Accounting Department of the Ministry of Finance also sends people to the IASB to directly By participating in technical research work on relevant standards projects, these representatives and personnel have also increased channels for my country to strengthen communication with the IASB, laying a solid foundation for feedback on China's opinions and establishing a long-term cooperation and convergence mechanism with the IASB. At the same time, China also initiated the establishment of the Asia-Oceania Accounting Standards Setting Group (AOSSG) last year, which will play an important role in expanding the influence of emerging market economies in the region, including China, on international standard setting.

After the outbreak of the international financial crisis, fair value accounting was criticized for being procyclical in the economy, and the IASB is also taking measures to make corresponding improvements. We believe that this is not the key to the problem. The key to the problem lies in the formation process of fair value (especially the pricing mechanism of financial assets and liabilities). The important root cause of this financial crisis is the imbalance of the economic structure, especially the structural imbalance between the real economy and the virtual economy in the United States and other countries, which has led to the expansion of asset bubbles, risk spread, and economic loss of control. In the current era of economic globalization and financialization, the real economy is certainly the foundation of economic development, but the rapid and sustainable development of the real economy is increasingly inseparable from the virtual economy. How to develop the virtual economy in a healthy and orderly manner so that it can interact positively with the real economy is the key to reshaping the international economic and financial order in the post-financial crisis era. We believe that the key to whether the virtual economy can develop healthily and whether risks can be controlled is the fair value of financial assets and financial liabilities (especially innovative financial instruments). This is the core issue that needs to be solved in fair value measurement. If fair value measurement accounting standards can make a breakthrough in this regard, it will make an important contribution to the development of the virtual economy, the control of financial risks and the balance of the global economic structure. The Accounting Department of the Ministry of Finance has currently established a major research topic on fair value measurement, established multiple sub-topics, and organized experts from treasury bond registration companies, securities companies, fund companies, futures exchanges, listed companies and accounting theory circles to conduct research on various financial instruments in my country. Conduct research on the characteristics, pricing mechanisms and reporting systems of China, comprehensively summarize the characteristics and unique problems of financial instruments and their fair value measurement in China as an emerging market economy, attempt to uncover the fair value formation process, collect specific cases and formulate research The report will be fed back to the IASB for reference in formulating and improving fair value-related standards. The IASB also hopes to obtain relevant research results from China. The research on major issues of fair value measurement in my country further demonstrates the principle that convergence should be interactive, which will play a very positive role in safeguarding the interests of our country's enterprises and the country.

Fourth, plan the timetable for the continued convergence of my country’s corporate accounting standards and deploy the construction of my country’s accounting standards for the next stage.

The roadmap proposes that the timetable for the continued convergence of my country’s accounting standards for business enterprises and international financial reporting standards is to keep pace with the progress of the IASB, and strive to complete the revision of projects related to China’s accounting standards for business enterprises by the end of 2011. . This is a decision we made based on the international and domestic situation, the requirements of the G20, FSB, etc., and the actual situation of our country.

Specifically, this timetable mainly takes into account the following factors:

First, the relevant time requirements of the G20 and FSB. The G20 and FSB are designing a financial regulatory framework for the post-financial crisis era and have outlined detailed work plans and timetables. In particular, the G20 Pittsburgh Summit held in September 2009 clearly required the completion of the international accounting standards convergence project by the end of June 2011. On March 30 this year, the leaders of the United States, the United Kingdom, France, Canada and South Korea jointly sent a letter to the leaders of other G20 member states, emphasizing that G20 member states must continue to strengthen cooperation in accordance with the timetable set by the Pittsburgh Summit. Promote regulatory reform and strengthen the international financial system, including international accounting convergence. As an important member of the G20, China needs to fulfill relevant obligations to achieve continued international convergence of corporate accounting standards within the specified time.

The second is the timetable for the IASB to revise or formulate relevant standards in response to the international financial crisis. In response to the international financial crisis and in response to the relevant requirements of the G20 and FSB, the IASB has also formulated a timetable for the revision or formulation of major standard projects, that is, it plans to complete the revision of major standard projects such as financial instruments and fair value measurement by the end of June 2011. Or formulate work, effective from January 1, 2013, early implementation is encouraged. Considering that my country's current accounting standards for enterprises have achieved international convergence, it is more appropriate for my country's accounting standards for enterprises to be revised simultaneously when relevant international standards undergo major changes.

The third is to make clear the timetable for continued convergence based on my country’s actual situation. After the IASB completes the convergence standards project at the end of June 2011, we still need to set aside a certain amount of time to digest and absorb it, draft or revise my country's relevant accounting standards, or do a good job in coordination between standards. To this end, we plan to simultaneously revise or formulate my country's accounting standards in 1-2 years, and complete the revision and improvement of the current corporate accounting standards before the end of 2011. Then reserve enough time for publicity and training and various preparations before enterprises implement the new standards, and then gradually implement them in all listed companies and large and medium-sized enterprises according to the needs of the situation and the effective time of the relevant international standards.

IV. Regarding the implementation of the road map

The road map proposes to take into account the actual situation of my country's emerging markets and countries with economies in transition, to participate more deeply in the formulation of international financial reporting standards, and to comprehensively promote my country's accounting standards continue to converge internationally and contribute to the establishment of globally unified high-quality accounting standards. This is a convergence statement based on a high starting point and high standards. It is a statement on how my country can mobilize all sectors of society to fully participate in the formulation of international game rules, effectively safeguard my country's interests, deepen my country's accounting reform, and promote the improvement of my country's accounting standards in the post-financial crisis era. As an important deployment, the financial department and relevant parties need to implement the road map in a down-to-earth manner and regard it as an important basic work for my country's accounting reform and development.

First, we must have a high-level perspective, take a long-term view, and do a good job in publicity of the road map. The road map is a programmatic document for the next step in the construction of my country's corporate accounting standards and their international convergence. Financial departments at all levels should work with relevant parties to actively promote the road map. It is necessary to publicize the background, significance, content, arrangements, etc. of the road map at multiple levels, from a wide angle, through various media such as newspapers, television, the Internet, and radio, so as to form a comprehensive participation of all sectors of society in the revision and formulation of accounting standards, and to support our country's Accounting standards continue to converge in the same direction, contributing to my country's participation in the formulation of international financial reporting standards and deepening accounting reform.

Second, we must mobilize extensively, actively participate, and do a good job in tracking research and feedback on international standards. It is very important whether our country can strengthen its voice and take the initiative in the new round of international accounting standards reform since the outbreak of the international financial crisis. According to the requirements of the roadmap, continued convergence is first of all interaction, and it is convergence based on full participation in the revision and formulation of the International Financial Reporting Standards project. To this end, my country's accounting theoretical and practical circles need to take extensive action, based on my country's national conditions, closely follow the latest changes in international standards, conduct in-depth research on the impact on my country's enterprises and economy, and promptly feedback relevant opinions to the IASB. The Accounting Department of the Ministry of Finance will promptly announce the latest information on international standards and relevant discussion drafts and solicitation drafts through the Ministry of Finance or the Ministry of Finance Accounting Standards Committee website and China Accounting News and other media, and solicit opinions from all walks of life. It is hoped that relevant parties will take into account China’s actual conditions , based on investigation and research, provide timely feedback to the Accounting Department of the Ministry of Finance. The Accounting Department will summarize and organize the feedback and provide it to the IASB on behalf of China. We also encourage relevant domestic units, experts and professors to directly provide feedback to the IASB to expand China’s voice and influence in the formulation of international standards.

Third, we must take precautions and work together to build a new round of accounting standards in our country. According to the deployment of the roadmap, the timetable for the continued convergence of my country's corporate accounting standards will be synchronized with the progress of relevant IASB projects. This means that while participating in the formulation of international financial reporting standards, we need to consider the revision or formulation of my country's corporate accounting standards. Work, this task is very arduous, we should take precautions and make early preparations.

We need to do a good job in the planning and management of my country's new enterprise accounting standards project. We need to have a thorough understanding of the newly revised or formulated standards by the IASB in a timely manner. We need to extensively listen to the opinions of relevant departments, units and experts, and we need to give full play to the members of the Accounting Standards Committee. The role of accounting experts and consulting experts requires sufficient theoretical support from the accounting theory community, and typical cases and operational guidance from the accounting practice community.

In short, all sectors of society should take the opportunity to study and implement the road map, take active action, work together, make suggestions, and make our due contributions to the improvement of my country's corporate accounting standards system and the construction of globally unified high-quality accounting standards!