China Accounting Standards System, that are basically in line with IASB (International Accounting Standards Board)norms. But, there is far more at stake than improving accounting practices at China’s listed firms. Chinese companiesare increasingly looking overseas for funds and acquisitions. Adopting international standards will make this easier byincreasing their transparency and credibility.From above deliberations, it can be believed at this moment that, the IOSCO’s endorsement of the IASC standards has paved the way for unification of accounting standards globally and emergence of the true artificial language designedfor global use in the field of accounting (Srkant, 2005). Today the world of accounting feels that InternationalAccounting Standards should be that language, as it is the only set of standards that has been prepared through wideinternational consultations and participations.
7. What will happen if USA does not adopt IAS? Now it is realized that, barring very few, almost all countries of the world are interested to follow IAS as their accounting standards. USA is the only main country reluctant to adopt it. Now question arises what will happen if super-power of the world and a highly developed economy like USA does not adopt IAS?Executive search firm, Russell Reynolds’ survey of chairmen across 145 European companies has found: (a) over half the chairmen of companies with US listings said they would consider de-listing because of Sarbanes-Oxley, in spite of the difficulties in taking shares off the US exchanges; (b) 70% of those heading companies not yet listed in the US saidSarbanes-Oxley would dissuade them from seeking a US listing.With the relatively tighter regulation in the US, several large companies are understood to be evaluating other capitalmarkets that accept IFRS (Memani, 2006). While such situations provide an opportunity for IFRS to flourish, it wouldstill
References: Chowdhury, A. K. (2000). Compliance with accounting standards in India, why and how? Management accountant ,ICWAI, March.Hati, W. J. and Rakshit, D. (2002). Integrating accounting standards — A step towards harmonization.