This study has two objectives: (1) to extend existing rounding phenomenon literatures on reported earnings and revenues to Chinese public firms and (2) to examine whether mandatory IFRS convergence in China constrains such rounding manipulations. We analyse interim earnings and revenue numbers over the period of 1990-2011. These reported accounting numbers show an unusual reporting pattern, which suggests that Chinese firms round up earnings and revenues. We then compare rounding manipulations in earnings and revenues before and after IFRS convergence. We find that profit firms round up their earnings more often and that loss firms round up their revenues more often after the mandatory IFRS convergence. Such a result may suggest that converging to IFRS does not discourage rounding manipulations.
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