Why U.S. exchanges insist on using IFRSs for financial reporting

US GAAP 52 and IFRS 21 are all about foreign currency conversion, so I will also talk about foreign currency conversion standards in China.

US GAAP 52 and IFRS21 are basically the same, except that foreign currency translation under hyperinflationary conditions is not quite the same.

To put it simply, if the base currency of a subsidiary outside of China is the local currency, and the local currency is in the midst of hyperinflation, the U.S. standard requires the subsidiary to be converted by purchasing power and then reported in another currency.

International standards require subsidiaries to prepare their statements in the base currency of the parent company.

There are also no significant differences between IFRS 21 and China's Accounting Standards for Business Enterprises in terms of foreign currency translation.

The biggest difference is in the currency in which it is presented.

International standards allow companies to use any currency as the currency in which their financial statements are presented.

Although there is no explicit requirement in the PRC Standards, the statutory reporting currency required by domestic companies can only be RMB.

Through the study of ACCA, I think that accounting in various countries has become more international, and the general idea is the same, and the specific research is not in-depth.

All U.S. companies will adopt International Financial Reporting Standards (IFRS) starting in 2014

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At present, the convergence of China's accounting standards and international accounting standards in 2006 has been relatively good, and many differences have been reduced. As long as you have an understanding of China's accounting standards, you can get started by looking for a book of American accounting standards to learn, the main differences are business combinations under the same control, fair value measurement, etc. At present, China and the United States have done a lot of work in the area of accounting equivalence, and they will certainly make great progress in convergence.

In addition, there are many books on American accounting standards in bookstores, and those who have a foundation in accounting standards can find a standard book, and those who do not have a foundation are advised to find an explanation book.

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In China, listed companies cannot apply IFRS (International Accounting Standards).

There are four reasons for this:

First, China's market economic environment is not at the same level as that of foreign countries.

Two: China's current use of IFRS will only limit the development of most Chinese enterprises.

Three: People like to make their own rules, and it is the same whether China is a big country.

Four: Chinese enterprises are too serious to cheat, whether it is a state-owned enterprise or a listed company, there is basically this situation.

If a company is only listed on A-shares, it only needs to prepare financial statements in accordance with the requirements of the new standard, and at the same time should comply with other relevant requirements of the CSRC and the stock exchange for listed companies (e.g. statement disclosure, etc.);

If the company is also listed on the Hong Kong Stock Exchange (i.e., a company that is also listed on A+H), it should also prepare an IFRS statement.

Domestic non-listed companies, in some specific circumstances, may also be required to prepare IFRS statements, these circumstances include but are not limited to:

1 In order to attract investment from foreign strategic investors, prepare statements in accordance with IFRS at their request.

2 Foreign-invested enterprises, in order to meet the reporting requirements of the foreign parent company, prepare financial statements according to IFRS for the use of the parent company.

3 Overseas subsidiaries prepare IFRS reports according to local regulatory requirements.

The domestic requirement is that listed companies must implement the accounting standards for business enterprises, and the accounting standards for business enterprises are converged with the international accounting standards.

No. It is good that the A-share listing complies with China's accounting standards.