PRC Accounting, Auditing and Research Tools 财务审计工具.ppt

PRC Accounting, Auditing and Research Tools Agenda Understanding PRC accounting hierarchy Interpretation of PRC accounting regulations (1/4) Accounting regulations in the PRC are not GAAP. They are regulations. Hierarchy of accounting regulations (2/4) Interpretation of PRC accounting regulations (3/4) The general rule is that any latest regulation issued (whether Standard or ASBE) would prevail over any prior regulations (both Standard and ASBE), unless specified otherwise. PRC accounting regulations, in broad principles, are in line with IFRS. However, when there are detailed stipulations, such as quantification criteria (量化标准 or bright-line test), try not to create GAAP differences, provided that the treatment is also acceptable under IFRS in consideration of materiality. Interpretation of PRC accounting regulations (4/4) Reference made to Exposure Drafts on accounting treatments If the accounting treatment for a particular transaction is not addressed in existing regulations, Exposure Drafts can be used to assist with the understanding of the possible development of PRC accounting regulations. However, when referring to the treatment of any ED, it should not contradict with any existing regulations. Consult with the China Technical Department is required if the accounting treatment proposed in ED’s are adopted for listed comapnies / IPO candidates. In addition, when any EDs are used as a reference, it should not be stated in the basis of preparation. Understanding PRC Auditing Development Framework of China’s Auditing Standards for CPAs Hierarchy of China’s Independent Auditing Standards (“CIAS”) 28 Specific Independent Auditing Standards (SIAS) 独立审计具体准则 10 Independent Auditing Practice Pronouncements (IAPP) 独立审计实务公告 5 Practice Guidelines 执业规范指南 Other Guidance on Audit Practice China Technical Resources Database Comprehensive database including: China Economic Regulations China Technical Department Publications Frequently Asked Questions CAS vs. IFRS (Un