Here, the IASB is the body that formulated IFRS and the SEC is the regulator. This difference between manufacturer and regulator can go against the uniformity of reporting, regulation should be improved (Brown and Tarca, 2005). Uniform standards alone cannot result in uniform reporting: direct involvement of the Chinese government in the regulation of financial reporting due to the changing political situations and culture of the countries. China has caused it to deviate from international reporting standards. The professional weakness of the accounting profession makes it politically weak. The Chinese government actively acts as a regulator to maintain political control (Zezhong Xiao, Weetman, & Sun, 2004). Alongside political and cultural forces, countries' legal systems (common law and codes of law) also influence the implementation of international standards in different contexts. Countries that follow common law are the United States, Canada and the United Kingdom and those that follow the code are Germany, France and Japan. The legal system would influence the development of the accounting system, i.e. financial practices, standards and disclosure, and would also play an important role in the development of capital structure, financial markets and business ownership (Jaggi and Low)..