BEIJING -- 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
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.