← Abstract
Faced with various issues of international accounting in cultural, economic, ethical and social level, after comparing US with China about the GAAP, analyzing the differences and difficulties in global accounting standard, it’s necessary to separate different accounting standards because of the diversification in different countries, it shows that accountancy professions play an important role in capital market, which can provide useful, relevant and reliable information to interested parties so that help them make decisions about financing, investing and allocating resources efficiently.

← Key words
Economic structure
Culture and ethics
Relevant, reliable useful information
Interested parties
Resources utilization
Accounting standard
True and fair
Substance over form
Accounting harmonization

← The issues of international accounting
1. Globalization
The nature of globalization is the market economic globalization, different countries have their own economic and social systems, which are more appropriate for their developing condition. Even though global trade can make each country communicate closely in the international market, they will choose their national GAAP combined with the IFRS or IFAC, which might still cause some significant differences in the financial reports. 2. Credit crunch

Credit crunch is a long-term financial crisis, which can influence the accounting standard a lot, using different accounting standards might shows totally different figures and information based on the same financial report by creative accounting. If the information affects the confidence of users, it will lead to the lack of clarity and trust. Credit crunch also cause the breakdown of accounting system, and it need quick and long-term fix, which is very difficult and complex in the international environment. 3. Needs of domestic economies

Domestic corporations going public need to adjust their financial reports according to IFRS, actually it accepts some differences between national GAAP and IFRS. 4. Sovereignty
Social structure determine who has the power to control the system and govern it, if there is a set of global accounting standard, who will be the one to set up them and regulate all of the accounting system.

← The differences between US and China
1. Economic structure
China and US are in the different industrial and global economy stages. In recent years, China shows a ‘double surplus’ in both current and capital account of BOP (balance-of-payment), while US shows a ‘triple deficits’ in private income, fiscal and current account. The unbalanced economic condition in US and China is the result of the political system. 1) Market economy & planning economy

US market is more open and free, it uses the ‘invisible hand’ as the price, which is determined by the relationship between demand and supply, to lead the economic market, and less government interference in the whole economic cycle. China uses more regulations to protect the domestic market, which the government control more and keep it relatively stable. 2) Trade deficit & trade surplus

US develops the economy by expand the domestic demand, which shows the import excess export, as a result of trade deficit. China increases the economy by expand international demand, shows the huge number of exports which cause a trade surplus in the current account in BOP. 3) Consumption surplus & shortage

US got excess consumption and China consumed less in domestic market. 4) Saving surplus & shortage
US encourage consumption instead of saving money in the bank, and US people prefer choose mortgage to borrow money from financial institution rather than save them. Chinese are more conservative, they would like to save money with low risk, low return. 5) FDI(foreign direct investment) & foreign portfolio investment US prefer to choose direct investment to...
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