1. What is your comment on the progress of the Accounting Standards Board in formulating international financial reporting standards?

Advantages of unified accounting standards: 1. The ability to absorb foreign capital has been enhanced. With China's accession to the WTO, China's market will be more open, which is China's obligation as a member. It can be predicted that foreign enterprises and foreign capital will enter the China market at a faster speed. This makes the conflict between the accounting standards of these companies' home countries and China's past accounting systems and accounting standards stand out. With the convergence of accounting standards and international financial reporting standards, the comparability of enterprise financial statements will be greatly improved, so that domestic and foreign accounting information users can conduct various analyses on a comparable basis. Then, on the one hand, the financing cost of China enterprises in the international capital market will drop; On the other hand, the tax burden of foreign investors will be reduced and their profits will be increased, so their confidence in investing in China's capital market will be enhanced, and the competitiveness of China enterprises in attracting foreign investment will be greatly enhanced. 2. It is helpful for China to strive for the treatment of "market economy status". The international convergence of accounting standards directly affects the position of China's market economy in the international market. The new accounting standards system has achieved substantial convergence with international financial reporting standards in many major aspects. One of the advantages is that when a country is accused of dumping goods at a low price, it can directly defend itself, thus greatly avoiding the high punitive tariffs that may be brought about by being accused of illegally dumping goods. In the investigation of anti-dumping cases, independent and clear accounting books kept in accordance with international accounting standards and audited are the only evidence that can verify the information provided by manufacturers. In the future, when China enterprises respond to anti-dumping investigations, the authenticity of the cost data provided by them will not be easily denied. Therefore, the international convergence of accounting standards is of great significance to the commodity export and foreign trade activities of China enterprises. 3. Contribute to the healthy development of the securities market. The new accounting standards system has achieved the convergence with international practices, which means that China enterprises will use the international common business language to talk to the international capital market, which is conducive to reducing the conversion cost between different standards, reducing the workload of conversion and adjustment, and is conducive to the preparation of financial reports of overseas listed companies. Meanwhile, China government regulators are planning to list overseas companies on the China stock market. With the convergence of China's accounting standards and international financial reporting standards, its scientificity, comprehensiveness, operability, understandability and transparency of accounting information provided are further enhanced. For foreign enterprises, on the one hand, it can reduce the conversion cost of preparing converted accounting statements, on the other hand, it can enhance their confidence in adopting China accounting standards to prepare accounting statements. The introduction of the new standard system will not only help domestic enterprises to raise funds overseas and expand their international business; On the other hand, it is also beneficial for foreign enterprises to come to China for financing, giving new meaning to the imported internationalization strategy. 4. Contribute to the long-term development of enterprises, improve the management level of enterprises, and prevent business risks. The new accounting standards for business enterprises highlight the core position of balance sheet in the reporting system, requiring enterprises to reasonably confirm expected liabilities, fully reflect current obligations and not underestimate liabilities and losses. Only when the balance of assets minus liabilities is increased, that is, the net assets of owners' equity, can it be shown that the value of the enterprise has increased and the wealth of shareholders has increased, which breaks through the traditional concept of pure profit assessment and helps the enterprise to improve its asset-liability management, optimize its asset capital structure, avoid the premature distribution of immediate interests and interests, improve its decision-making level and focus on its long-term strategy and sustainable development. 5. Promote independent innovation and technological upgrading of enterprises. In the new accounting standard system, R&D expense capitalization system is introduced into the choice of accounting policy. The Accounting Standards for Business Enterprises has changed the current practice of fully expensing R&D expenses, allowing the expenditures of development activities that meet the recognition conditions to be capitalized and recognized as assets. This policy will greatly improve the financial situation and performance level of high-tech enterprises, innovative enterprises, venture capital enterprises or enterprises with large R&D investment, especially improve the asset structure and credit status of enterprises, provide convenience for financing and refinancing of these enterprises, encourage these enterprises to increase investment in science and technology and R&D activities, and promote technological upgrading, product upgrading and industrial restructuring. 6. This will help to enhance the international status of accounting in China. The new accounting standards system for enterprises has created an accounting standards formulation model that adheres to the characteristics of China and is in line with international standards, and established a platform that can be recognized by both Chinese and international standards. The new accounting standards system puts forward four principles of international convergence of accounting standards in China, namely, convergence is progress and direction; Convergence is different; Convergence is a process; Convergence is an interaction. These four basic propositions of international convergence of accounting have been recognized by the International Accounting Standards Board, the European Union, Japanese and Korean accounting standards-setting bodies, which has expanded the international influence of China accounting. The rise of China's accounting international status and the increase of international discourse power have also realized the new situation of China's accounting internationalization from passive integration to active convergence, mutual influence, * * promotion and * * improvement, which is conducive to China's faster realization of the goal of formulating high-quality accounting standards, promoting exchanges and cooperation in the global accounting field, enhancing China's influence in the international accounting field, and further improving China's accounting international status. Disadvantages of unified accounting standards: 1. It brings huge cost of system reform. International financial reporting standards basically reflect the situation of developed countries, but rarely consider the situation of developing countries or countries with economies in transition. At the same time, there is still a big gap between China's accounting standards and international financial reporting standards, and convergence will inevitably bring high system reform costs to China. 2. The formula cost increases. The accounting standard-setting procedure, which started in 2003, was formulated by the Ministry of Finance on the basis of learning from the experience of other countries and the International Accounting Standards Board. The application of guiding principle, prudence principle and a large number of professional judgments are not automatically solved by accounting information system, but depend on the professional judgment level of accountants to a considerable extent. For small and medium-sized enterprises, high-quality requirements for accountants, expensive accounting costs and audit costs are inevitable problems, and the widespread adoption of international convergence standards will greatly increase the cost of accounting information generation. 3. The increase of switching cost. China's old accounting standards draw lessons from the former Soviet model, which is quite different from international accounting standards. Compared with the former Soviet model, the profit calculated by adopting international accounting standards is much lower, so the affected interest groups oppose the internationalization of accounting standards, and the stakeholders affected by negative economic consequences are more opposed to the losses caused by international accounting standards, so the conversion cost of accounting standards internationalization will be higher. 4. The reduction of tax revenue. For our government, the most obvious economic consequence of adopting international accounting standards is taxation. Because tax revenue is based on the income of accounting report, the accounting profit calculated according to the international common practice is usually lower than that before adopting the new standard. The underestimation of accounting income leads to the reduction of corporate tax burden, and the tax revenue of China government decreases under the new accounting standards. The China government is fully aware of this negative economic consequence, but they are willing to sacrifice taxes in exchange for foreign investment. 5. Impact on enterprises. On the one hand, the implementation of the new standard system will increase the cost of enterprise system reform, learning and implementation. On the other hand, under the condition that the operating conditions of enterprises remain unchanged, the profits obtained by adopting international financial reporting standards will generally decline. Then the image and financing ability of enterprises in the capital market will be damaged. 6. Impact on investors and creditors. The financial information produced by enterprises after the change of standards is not vertically comparable to the accounting information produced before the change of standards. In recent years, it is difficult for investors and creditors to judge whether the financial situation and operating results of enterprises have become better or worse from the changes in financial data. In addition, the professional knowledge of investors and creditors in China is relatively weak, and the understanding of the new accounting standards is also a big problem. In the process of international convergence of accounting standards, China's accounting standards are not synchronized with international accounting standards, which increases the cost of changing and implementing accounting standards and harms the interests of China and Chinese enterprises. In the process of convergence, China accounting standards unilaterally approached IFRS, instead of actively participating in the formulation of IFRS according to China's interests or requiring IFRS to approach China accounting standards in some aspects. In addition, China's accounting standards have changed too frequently, the cost of formulation and implementation has increased substantially, and the authority has declined, so the advantages and benefits of the convergence of accounting standards cannot be fully demonstrated. (Reference: Reflections on the Economic Consequences of the International Convergence of the New Accounting Standards of Liu Yu, Zhang Xia and Zhang Chengliang)