LehmanBrown business guide: Accounting and Bookkeeping in China
Accounting & Bookkeeping standards differ from one country to another, even though most countries Generally Applied Accounting Principles ("GAAP”) have been modified to be in compliance or similar to International Financial Reporting Standards ("IFRS"). However there are still many countries that operate within their own GAAP regulations. China's Accounting Standards (known as "CAS” or "PRC GAAP”) have remained largely autonomous from globally recognised principles and thus provide cross-border businesses and multi-nationals ('MNCs”) with a challenge when ensuring compliance to the principles used in their Head Office jurisdiction. For example, there are different rules for impairment of assets, inventory costs & reversal, capitalisation of development costs, depreciation expenses, interest & dividend expenses and asset valuation. Those different methods can have an impact on business ratios, profitability and tax burden. This extensive handbook will provide a guide to "Accounting & Bookkeeping Practices in China” and raise awareness of the necessary compliance procedures for businesses. It covers the following key areas of understanding:- Development of the Chinese Accounting System
- Differences between CAS/PRC GAAP & IFRS & US GAAP
- Tax Filing
- Fapiaos