China to explore further use of IFRS

China Finance Ministry Global Accountant IFRSThe IFRS Foundation and the Chinese Ministry of Finance today announced the formation of a joint working group to explore ways and steps to advance the use of IFRS Standards within China, especially for internationally-oriented Chinese companies.

The announcement forms part of a comprehensive update to the 2005 Beijing Joint Statement (‘the 2005 Statement’).  The 2005 Statement served as the basis for a decade of co-operation between the IASB and Chinese authorities, and led to Chinese Accounting Standards becoming substantially converged with IFRS Standards.

Building on the success of the 2005 Statement, the 2015 Joint Statement:

  • establishes a joint working group to explore steps and ways to advance the use of IFRS within China, especially for internationally-oriented Chinese companies;
  • identifies the vision of Chinese Accounting Standards becoming fully converged with IFRS Standards, which is consistent with the G20-endorsed objective of a single set of high quality, global accounting standards; and
  • encourages continued co-operation between the IASB and Chinese stakeholders in the future development of IFRS Standards.