Chinas accounting system and the benefits or problems after implementing IFRS Luyi Peng The Peoples Republic of China was established in 1949. It is also called China today. The accounting system development in China can be divided into four periods. The first period is the early years of the new nation, Chinas accounting system was influenced by Soviet Union, which is called Uniform Accounting System. The Uniform Accounting System is suit for the planning economy at that time of China (Xiao, Weetman and Sun, 2004, Google scholar). Planning economy means that enterprises were controlled by the central government. Lynne, Gerald and Sidney (1995, Google scholar) pointed that under this accounting system, accounting practices, in other word, is fundfund application and fund resource. Under the control of the central government, the accounting system in China was established step by step and some basic systems like taxation, budget and public sector accounting was confirmed. It was the groundwork for the development of Chinas accounting system (Guo and Wang, Google scholar) The second period is Great Leap Forward and Cultural Revolution. In Great Leap Forward from 1958, Uniform Accounting System was overturned because of the disarray in economy and politics in China. Influencing by Great Leap Forward, exaggerative thought was popular and Some basic accounting system was abandoned and accounting and supervision function is weakened greatly (Guo and Wang, Google scolar). To improve the situation, Chinese government decided to implement accounting reform. Nonetheless, the Cultural Revolution from 1966-1976 makes accounting reform unsuccessful and accounting system in China was destroyed. In that period, thoughts in profits, costs and property from Soviet Union was criticized. In addition, The ministry of finance accounting system management institutions were repealed, even the accounting institutions in some enterprises management departments were also repealed. Adding the simplified process in accounting system, the accounting in China was in a mess. This period in Chinese accounting system can be called a harsh time and has huge impacts in Chinese accounting history. (Huang and Zhang, online) The third period of Chinese accounting system is after the Cultural Revolution. In this period, economy in China recovered from Cultural Revolution. In addition, under the reform and opening-up policy, Chinese economic system started to change from planning economy to market-oriented economy, which led to the accounting system recovered. This period can be seen as the transition period in Chinese accounting system (Wang, 2012, online). Xiao, Weetman and Sun (2004, Google scholar) pointed that Amid this climate, the Ministry of Finance issued Accounting System for Companies Experimenting with a Shareholding System and the Accounting Standard for Business Enterprises (ASBE) in 1992. This stage of the accounting reform of Chinas accounting system signed Chinese accounting system has entered a new level. Ding and Su (2008, Google scholar) stated that it is not only because of ASBE was published, but also for the following years dozens of accounting standards from 1992. Finally, the last period of Chinese accounting system is from 2001. China entered into World Trade Organization in 2001 and to adapt the globalization trade, China had to have new accounting system for business enterprise. With the development of international economic globalization, In 2006, Ministry of Finance published new accounting standards and revised Accounting Stardard for Business Enterprises. It marked the our country accounting basically with the International Accounting Standards(IAS) convergence and China started to implement International Financial Reporting Standards(IFRS) (Xiao, Weetman and Sun, 2004, Google scholar). To sum up, the significant changes for accounting