The European Commission (EC) is to approve a set of Chinese
accounting standards (CAS) in line with those used in EU nations by
the end of 2008, a senior EC official has said.
Charlie McCreevy, Commissioner for the Internal Market and
Services, said Tuesday at a press conference during his two-day
visit to China that the EC had set a timetable to decide on the CAS
equivalent to the international financial reporting standards
(IFRS) used by all EU member states.
China would be the fourth country after the United States, Japan
and Canada, to accounting standards equivalent to those in the
EU.
The EU started using the IFRS for all listed companies in its 27
member states in 2005. McCreevy said if the CAS was taken as the
equivalent of the IFRS, then Chinese companies listed in European
stock markets would have no need to change their annual financial
reports.
China adopted new CAS for all listed companies and auditing
standards for accounting firms in January, marking substantial
progress in convergence with the IFRS and the international
standards on auditing.
In talks with Chinese Vice Minister of Finance Wang Jun, whose
department oversees accounting affairs, on Monday, McCreevy
stressed the EC's strong support for convergence between the IFRS
and the CAS.
He welcomed China's progress in developing accounting standards
and contributing to international convergence, and encouraged China
to continue the convergence process.
McCreevy and Wang agreed that consistent application of
accounting standards needed proper enforcement systems and
education and training.
They agreed both sides should continue to hold regular meetings
to exchange views on international accounting convergence and
equivalence.
McCreevy, on his second visit to China, came to discuss
strengthening regulatory cooperation in key policy areas, including
financial services, accounting and auditing, securities and asset
management, public procurement and intellectual property
rights.
He held meetings with Minister of Finance Jin Renqing, People's
Bank of China governor Zhou Xiaochuan, president of the planned
Foreign Exchange Reserves Management Company Lou Jiwei, and China
Securities Regulatory Commission chairman Shang Fulin.
(Xinhua News Agency June 13, 2007)