Page 57 - Doing Business in China

ACCOUNTING

The accounting regulations and standards required for non-listed companies are as follows:

▪ Accounting Standards for Business Enterprises (original and first revised versions effective from 1 July 1993
and 1 January 2007 respectively, with latest version effective since 23 July 2014)
▪ Accounting Regulations for Business Enterprises (effective 1 January 2001)

▪ Accounting Regulations for Financial Institutions (effective 1 January 2002)
▪ Accounting Regulations for Small Enterprises (original effective 1 January 2005, latest version effective since
1 January 2013)
▪ Basic Standard (original and first revised versions effective from 1 July 1993 and 1 January 2007 respectively,
latest version effective since 23 July 2014)
▪ Events after Balance Sheet Dates (effective 1 January 1998, revised in 2003, latest version effective since
1 January 2007)

▪ Cash Flow Statement (original effective 1 January 1998, revised in 2001 and 2006, latest version effective since
1 January 2007)

▪ Changes in Accounting Policies, Accounting Estimates and Correction of Accounting Errors (original effective
1 January 1999, revised in 2001, latest version effective since 1 January 2007)
▪ Investments (original effective 1 January 1999, revised in 2001, latest version effective since 1 January 2007)

▪ Debt Restructuring (original effective 1 January 1999, revised in 2001, latest version effective since 1 January
2007)

▪ Contingencies (original effective 1 July 2000, revised version effective since 1 January 2007)
▪ Non-monetary Transactions (original effective 1 January 2000, revised in 2001, latest version effective since
1 January 2007)
▪ Leases (effective 1 January 2001, revised version effective since 1 January 2019)

▪ Borrowing Costs (original effective 1 January 2001, revised version effective since 1 January 2007)
▪ Fixed Assets (original effective 1 January 2001, revised version effective since 1 January 2007)

▪ Inventories (original effective 1 January 2001, revised version effective since 1 January 2007)

NEW ACCOUNTING STANDARDS
In February 2006, a basic standard and 38 new accounting standards were issued, supplemented by another
33 implementation notes and four interpretation notes� These standards and interpretation notes (‘New GAAP’)
took effect on 1 January 2007 and are compulsory for public-listed companies, centrally managed state-owned
enterprises, financial institutions, security investment funds and fund management companies� All large and
medium-sized entities are required to adopt the New GAAP� Other companies, including foreign investment
enterprises, are encouraged to adopt the New GAAP, but have the option to continue using the accounting
regulations and standards mentioned in the preceding section�

The New GAAP underwent major reforms in July 2014, including a revision of the basic standard and five accounting
standards, as well as the addition of three new accounting standards�

Additional major reforms occurred in 2017, including a revision of six accounting standards, as well as the addition
of a new accounting standard� In addition, 6 interpretation notes were supplemented�

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