Page 56 - Doing Business in China

ACCOUNTING

“Due to China’s broad territory and different administrative divisions, each entity will be directed to
the respective local government bureaus to facilitate regulatory compliance. Each region also has
different incorporation and taxation policies for compliance. For example, a company’s subsidiaries
incorporated in different regions may be treated as different types of branches, subject to relevant
local tax compliance and related accounting policies.”
Vicky Wei, Director, Accounting & Advisory

ACCOUNTING REGULATIONS AND STANDARDS
A unified accounting system was implemented for business
enterprises with effect from 2002� Additional regulations were also
implemented for financial institutions in 2002 and small enterprises
in 2005� The Ministry of Finance has supplemented these regulations
with the issuance of specific accounting standards designed to
converge with International Financial Reporting Standards (IFRS) and
accounting interpretations� Collectively, the regulations, standards,
and interpretations are referred to as China GAAP�

Doing Business in China 2023 | 55