EC to approve Chinese audit standards

Charlie McCreevy has announced that the European Commission is to approve
Chinese accounting standards (CAS) in line with those used by EU countries by
the end of next year.

The Internal Markets Commissioner made the announcement at a press conference
in China yesterday afternoon, during a two-day visit to agree a timetable for
approval of Chinese standards to be equivalent to IFRS, the
Daily reported.

McCreevy said that if Chinese standards were approved, then there would be no
need for Chinese companies listed in Europe to change over to IFRS.

The country’s adoption of CAS in January included substantial progress in
convergence with IFRS and international auditing standards.

Speaking with Chinese vice minister of finance, Wang Jun, McCreevy stressed
the EC’s support for convergence between CAS and IFRS, and praised the country’s
convergence efforts. He also agreed that consistent application of standards,
and proper enforcement, education and training levels were needed.

Further reading:

the China Daily story

Related reading

Fiona Westwood of Smith and Williamson.