In modern transportation

communication

information

network and other high-tech means

economic globalization has become the most obvious feature of the current international economic development. Economic globalization urgently requires accounting standards to be uniform and comparable worldwide. Accordingly

the International Accounting Standards Board (IASB) and financial accounting standards board (FASB) set out the strategic objective of developing and implementing a set of high quality

understandable and enforceable Global Accounting Standards. The international financial reporting standards(IFRS) can not only improve the transparency and comparability of exchanges

but also play a better role as the international common business language for financial information. Moreover

it can greatly reduce transaction costs and improve the credibility of financial information.