China adopts 38 new accounting standards
16 Feb 2006
The Ministry of Finance (MOF) of the People's Republic of China has announced that it has adopted a new basic standard and 38 new Chinese Accounting Standards that are substantially in line with IFRSs, though a few exceptions are acknowledged.
The basic standard is akin to a conceptual framework, and the 38 standards address nearly all over the issues covered in IFRSs. The MOF has also adopted 48 new Chinese Auditing Standards that are similar to International Standards on Auditing issued by the International Auditing and Assurance Standards Board. Click for a (PDF 123k English and Chinese). The new accounting and auditing standards will become effective for listed enterprises from 1 January 2007. Other enterprises are encouraged to adopt them. Deloitte Touche Tohmatsu (China) has served as consultants to the MOF in developing Chinese Accounting Standards since 1993. The MOF announced the new standards in a ceremony in the Great Hall of the People, in Beijing. IASB Chairman David Tweedie participated, saying that he expected China's speedy move toward international standards is likely to spur some other countries in the Asia-Pacific region to do the same.