Answer the following questions in essay form, based on the information presented in the case and your perspective from our class discussion.
1. What are the benefits to China from adopting IFRS?
2. How do you think China should proceed with its IFRS policy? In particular, is IFRS convergence a better model for China than full adoption?
3. As an investor in China, what concerns, if any, will you have with financial reports prepared under Chinas IFRS-based standards? What steps would you want put in place to address those concerns? In other words, what do we need to make international accounting work in China?
4. What are the implications of this China scenario for the nature of IFRS globally? How should we think about setting accounting standards globally? What does it mean for a country to adopt IFRS?
