porno Chinese Law | China: What are the basic assumptions of accounting in China?
China -  Chinese law firm
 China Lehmanlaw - Chinese Law Firm

What are the basic assumptions of accounting in China?

(a) Accounting Entity
An accounting entity can be an enterprise, and enterprise group or the accounting department of an enterprise.
(b) Continuity Postulate
The Accounting System stipulates the accounting treatment to be adopted by enterprises under normal circumstances based on the continuity postulate. For instance, the historical costing method is used for the assets and liabilities of an enterprise, and the depreciations method on the basis of historical costing is used for fixed assets.
(c) Accounting Period and Accounting Year
According to the Accounting System, an enterprise should account for its transactions or vents and prepare financial statements in distinct accounting periods. Accounting periods may be a year, half year, q quarter or a month, commencing on the first day thereof according to the calendar year.
(d) Measurement Currency and Reporting Currency
Renminbi is the reporting currency of enterprises. While a certain foreign currency may be used as the reporting currency for enterprises heavily engaged in foreign currency transactions, all foreign currency transactions should be converted into reminbi when financial statements are prepared and submitted.
Accounting records and financial reports should be compiled in Chinese. FIEs, foreign enterprises and other foreign organizations in China may use one foreign language concurrently with the Chinese language.

RSS Feeds