Conclusion

It appears that there are not many material differences between the PRC accounting regulations and the IAS. As mentioned above, however, the PRC regulations are mandatory in nature and their coverage is not as broad as that of the IAS. While narrowing the gap between the two accounting standards may not be too difficult to achieve, the infancy of the new accounting system, the rigour of implementation by various companies and the extent of management that is capable of exercising fair judgment are practical difficulties to be surmounted in the PRC.