This thesis is a comparative study of the Chinese Accounting Standards for Business Enterprises (ASBE) and the International Financial Reporting Standards (IFRS). The new set of ASBE which is converged with IFRS was established in 2006 and took effect on 1 January 2007. It has been implemented effectively over the past eight years. The coverage extends from listed companies in China to almost all large and medium-sized Chinese enterprises. In the meantime, the United States is delaying the roadmap towards the adoption of IFRS in recent years. This makes “Convergence Strategy” a key to the development of the Chinese accounting standards. A comprehensive comparative analysis between ASBE and IFRS is made from the perspectives of standards, implementation and effects. Root causes leading to the differences are investigated by analyzing the cultural, legal, economic and information factors. Furthermore, with lessons from the United States, it is suggested that China should continue the international convergence of accounting standards. Finally, it is recommended for China to strengthen multilateral cooperation in the development of international accounting standards and improve the quality of accounting professionals. Prospective evaluation of potential economic consequences of standards implementation as well as compatibility studies of IFRS and China’s institutional framework also help in enhancing the convergence process.