Previous studies have demonstrated significant discrepancies in financial results prepared separately under Chinese and international accounting standards. After years of reforms of Chinese accounting practices, there is still doubt as to whether previous discrepancies persist. This study therefore purports to evaluate the current dimensions of differences between the H‐share and the A‐share financial results.
Corresponding figures from H‐share and A‐share reports were obtained in pairs and analyzed through paired sample t‐tests.
Except for the result on operating income, all other t‐tests suggest that there is no significant difference between the paired figures of sales revenue, income before tax, net income, assets, debts and equity.
It can be concluded that the harmonization progress of Chinese accounting standards has advanced remarkably. Although full convergence has not been reached, the existing Chinese accounting standards have incorporated both the traits of international standards and the features of Chinese accounting practices.
Contrary to previous findings, this study did not identify statistically significant differences between H‐share and A‐share financial reports.
