How, if at all, do financial reporting objectives differ between a free market economy and a "socialistic market economy"? Explain. Are there specific accounting concepts or principles that are more or less relevant in a free market economy than in a socialistic market economy? If so, identify those concepts or principles and briefly explain your rationale.

In 2005, the MOF announced that it was working with the International Accounting Standards Board (IASB) to converge CAS with International Financial Reporting Standards (IFRS). The deadline for completing this convergence process was extended on multiple occasions, but the process was ultimately expected to be completed no later than 2012.

Most Chinese business organizations were required to adopt the revised CAS. The IASB reported that it would help Chinese officials develop IFRS-consistent CAS to meet the special needs of China's economic system, including an accounting standard addressing the controversial issue of disclosing material related-party transactions.