What to know about accounting in China?

 

Currently, China's accounting system is one of the best in the world. Indeed, the accountants of this country are mainly based on the Chinese Accounting Standards. Moreover, these standards are seen as potential competitors to the international IFRS standards. Through this article, you will learn more about China's accounting. So read it for more insight.

China's fiscal year

Currently, in China, Chinese Accounting Standards are doing wonders, especially in the field of accounting. Their main enemies are the International Financial Reporting Standards (IFRS) which were promulgated by the Ministry of Finance. As described on https://www.fiducia-china.com, they came into effect on July 1, 1993. Following this, a number of more specific standards were promulgated, more precisely from 1997 onwards. A Chinese fiscal year starts on January 1 and ends on the last day of the same year: December 31. During this period, Chinese companies have to publish an audit report mentioning their financial statements. This report should contain not only your opinion paragraph, but also a task paragraph. Let's not forget the financial statements, which include the notes related to the accounts and a balance sheet. They also include the cash flow report as well as a profit and loss appropriation account.

The various existing accounting bodies

Businesses wanting to have more details about China accounting can approach various accounting bodies. There are several currently in existence, however, only three of them catch our eye the most. These include the Ministry of Finance and the Chinese Institute of Certified Public Accountants. There are not only these two accounting structures in China. You can also consult the Chinese Accounting Standards Committee to be satisfied.

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