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On his visit to China, Commissioner McCreevy met Mr. Wang Jun, Vice Minister of Finance in charge of accounting affairs, to exchanged views on the recent developments in the Chinese and the EU capital markets with a particular focus on accounting and auditing issues.
Vice Minister Wang said that Chinese accounting standards and auditing standards have made substantial progress to convergence with International Financial Reporting Standards and International Standards on Auditing. He also confirmed that new Chinese Accounting Standards (CASs) and Chinese Auditing Standards are effective from January 2007 to all Chinese listed companies and CPA firms respectively, which ensure high quality information to be provided by Chinese listed companies.
Both sides agreed to have regular meetings to exchange views for international accounting convergence and equivalence.
Commissioner McCreevy recalled that a decision on the equivalence of Chinese Accounting Standards is planned to be taken by the Commission by the end of 2008.
Both sides also considered important to make progress in the area of auditing. The final goal will be to move towards mutual reliance on each others' oversight and regulatory systems. This will require extensive preparatory work which should also involve China Securities Regulatory Commission (CSRC) and Chinese Institute of Certified Public Accountants (CICPA).