1. Critically comment on the results reported by CPCC under PRC GAAP, IFRS, and U.S. GAAP.
2. Identify the main areas of difference for CPCC between:
a. PRC GAAP and IFRS.
b. IFRS and U.S. GAAP.
3. Should UK readers of these financial statements find the information useful?
4. Should U.S. readers of these financial statements find the information useful?
5. Would you recommend that other companies adopt the multiple standards approach taken by CPCC? Explain.
American shareholders, the company also provides a reconciliation of net income and stockholders' equity from IFRS to U.S. GAAP. The following is the section of CPCC's 2003 annual report providing this information.
Effects of major differences between the PRC Accounting Rules and Regulations and IFRS on net profit are analysed as follows:

2003 RMB Note millions 19,011 Net profit under PRC GAAP Adjustments Depreciation of oil and gas properties Disposal of oil and gas properties Capitalisation ofgeneral borrowing costs Acquisition of Sinopec Maoming, Xi'an Petrochemical and Tahe Petrochemical(iv) Acquisition of Sinopec National Star Gain from issuance of shares by subsidiary Gain from debt restructuring Revaluation ofland use rights Unrecognised losses ofsubsidiaries Pre-operating expenditures Effects ofthe above adjustments on taxation Net profit under IFRS 1,784 1,260 389 Oi 326 IV (iv) 136 82 18 (182) (169) (1,179) 21,593 (vi) (Vin (vii) IX 2003 RMB millions 162,946 Note Shareholders' finds under the PRC GAAP Adiustments Depreciation of oil and gas properties Disposal of oil and gas properties Capitalisation of general borrowing costs Acquisition of Sinopec Maoming. Xi'an Petrochemical and Tahe Petrochemical Acquisition of Sinopec National Star Revaluation oflanduse rights. Effect on minority interests on unrecognised losses of subsidiaries. Pre-operating expenditures Impairmentlosses onlong-lived assets. Govemment grants Effect of the above adjustment on taxation.... Shareholders'funds under IFRS G) 10,885 1,260 1,125 (iv) (iv) vil (2,812) (870) 61 (169) (113) (326) (4,088) (ix) (xi) 167,899