Abstract: The establishment of global GAAP has become a trend. Accounting elements and accounting subjects are important elements of accounting standards, and are the basic classification of accounting objects and the basis of accounting. The basic classification between them is highly relevant and distinctly different, following six evolution ideas: corresponding setting, split ratio, split single, profit and loss merger, equity merger, considering special. First of all, from the service object, target setting, the specific use three aspects of research, the paper provides a reasonable theoretical explanation for the differences of their basic classification, putting forwards accounting elements have characteristics of distinctive externalities, high level, unity, while the accounting subjects are distinctive internal, low level and flexibility. Secondly, through the empirical study of the profit formation process of the main business of manufacturing enterprise, the paper gives a sufficient practical proof for the difference between the two basic classifications. Finally, by comparing the basic classification between Chinese and American accounting elements, this paper puts forward that China should speed up the reform of the basic classification of accounting elements and accounting subjects, which will have important strategic significance for promoting the international convergence of accounting standards and guiding the allocation of social resources market.

Key words: accounting standards；accounting elements；accounting subjects；basic classification, international convergence