The Clute Institute
Review of Business Information Systems
Based on concerns regarding the usefulness of the current format of the financial statements to assist users in making decisions and as part of the convergence efforts of the IAS and GAAP, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) created a joint project (2004) on financial statement presentation which resulted in the publication of their joint Discussion Paper, Preliminary View on Financial Statement Presentation. Prior research has examined the response of academics, preparers (CPAs) and US accounting students (future preparers). This paper extends that research by examining the reaction of Chinese accounting students, future international preparers. While the Chinese students show greater support for the proposals of the FASB and IASB than the US students, the support is moderate. We believe the stronger support of the Chinese students for the proposals is primarily related to cultural issues as compared to the substance of the proposals. The findings of this study are consistent with findings of prior research. While the project is currently on hold the findings of this study and prior research suggests that the FASB and IASB should consider whether the proposals appropriately address the concerns in making the decision to renew this project.
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