China to explore further use of IFRS

 24 November 2015

The IFRS Foundation and the Chinese Ministry of Finance today announced the formation of a joint working group to explore ways and steps to advance the use of IFRS Standards within China, especially for internationally oriented Chinese companies.

The announcement forms part of a comprehensive update to the 2005 Beijing Joint Statement (the “2005 Statement”). The 2005 Statement served as the basis for a decade of co-operation between the International Accounting Standards Board (IASB) and Chinese authorities, and led to Chinese Accounting Standards becoming substantially converged with IFRS Standards.

Building on the success of the 2005 Statement, the 2015 Joint Statement:

• establishes a joint working group to explore steps and ways to advance the use of IFRS within China, especially for internationally oriented Chinese companies;
• identifies the vision of Chinese Accounting Standards to become fully converged with IFRS Standards, consistent with the G20-endorsed objective of a single set of high quality, global accounting standards; and
• encourages continued co-operation between the IASB and Chinese stakeholders in the future development of IFRS Standards.

The 2015 Beijing Joint Statement can be accessed here, while the 2005 Beijing Agreement can be accessed here.

For more information on the use of IFRS Standards around the world, please visit our jurisdiction profiles page.