Page 58 - Doing Business in China

ACCOUNTING

These latest changes are shown in bold below:

No. Standard No. Standard
Financial Instruments: Recognition and Measurement
1 Basic Standard (revised in 2014) 23
(revised in 2017)
2 Inventories (revised in 2007) 24 Transfer of Financial Assets (revised in 2017)
3 Long Term Equity Investments (revised in 2014) 25 Hedging (revised in 2017)
4 Investment Properties 26 Insurance Contracts
5 Property, Plant and Equipment 27 Reinsurance Contracts
6 Biological Assets 28 Extraction of Oil and Natural Gas

Changes in Accounting Policies and Estimates and
7 Intangible Assets 29
Correction of Errors
8 Exchange of Non-monetary Assets (revised in 2019) 30 Events after the Balance Sheet Date

9 Impairment of Assets 31 Presentation of Financial Statements (revised in 2014)
10 Employee Benefits (revised in 2014) 32 Cash Flow Statements
11 Enterprise Pension Funds 33 Interim Financial Reporting
12 Share-based Payments 34 Consolidated Financial Statements (revised in 2014)

13 Debt Restructuring (revised in 2019) 35 Earnings Per Share
14 Contingencies 36 Segment Reporting
15 Revenue (revised in 2017) 37 Related Party Disclosures
Financial Instruments: Presentation and Disclosures
16 Construction Contracts 38
(revised in 2014 and further revised in 2017)
First-time Adoption of Accounting Standards for
17 Government Grants (revised in 2017) 39
Business Enterprises
18 Borrowing Costs 40 Fair Value Measurements (newly added in 2014)
19 Income Tax 41 Joint Venture Arrangements (newly added in 2014)
Disclosure of Interests in Other Entities (newly added
20 Foreign Currency Translations 42
in 2014)
Non-current Assets and Disposal Groups Held for Sale
21 Business Combinations 43
and Discontinued Operations (newly added in 2017)
22 Leasing (revised in 2018)

Since the adoption of the New GAAP, the differences between IFRS and accounting standards in China have
reduced significantly�

ACCOUNTING STANDARDS FOR SMALL AND MEDIUM-SIZED ENTERPRISES
The new accounting standards for small and medium-sized enterprises (SMEs) implemented in January 2013 replaced
the old accounting regulations implemented in 2005� They present a simplified accounting framework for SMEs in
order to reduce compliance costs and allow growing enterprises to focus on internal control and business strategy�

These accounting standards are not applicable for the following:
▪ Small enterprises whose stocks or bonds are listed publicly in the market for trading�
▪ Financial institutions or other small enterprises that provide services of a financial nature�
▪ Parent company and subsidiaries of a group

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