International convergence of accounting standards for business combinations: perspective from China

Due to the economic globalization, the worldwide business combination growing nowadays. In response to globalization in today`s economy, the international convergence of accounting standards is inevitable. China has made great effort to catch up with international convergence, but still has a long way to go before uniform is reached. This paper studies international convergence of Chinese accounting standards focus on business combination. This paper is divided into six parts. Firstly, introduces the background and literature review; secondly, describes some basic concept of business combinations; thirdly, represents basic concepts of Chinese Accounting Standards and International Financial Reporting Standards, comparative analyzing differences between them; fourthly, analyzes the reasons why China has not fully convergence; and then points out the trend of international convergence and proposes relevant strategies and problems should be noticed in the convergence; finally, the conclusion.