In 2006, the Chinese Ministry of Finance (MOF) promulgated a revised set of Accounting Standards for Business Enterprises (ASBE). The MOF and the International Accounting Standards Board (IASB) regard the ASBE as substantially reflective of the International Financial Reporting Standards (IFRS).
• As a major step towards economic globalisation and capital market development, the Ministry of Finance (MOF) of China promulgated a revised set of Accounting Standards for Business Enterprises and its Application Guidance (hereinafter referred to as ASBE (2006)) on 15 February 2006 and 30 October 2006 respectively.
• The ASBE (2006) will firstly be applied to those listed enterprises in China from 1 January 2007. Other Chinese enterprises are encouraged to apply them.
• This 8th Edition of the China Master GAAP Guide provides comprehensive, practical and up-to-date commentary on ASBE (2006). Each of the 39 accounting standards is explained in detail and illustrated extensively with examples. A chapter on the Application Guidance is also included.
What’s new in this edition?
More and more types of Chinese enterprises are encouraged to apply ASBE (2006):
• From 2007: Listed enterprises, insurance enterprises, securities enterprises, fund management enterprises and investment funds
• From 2008: Banks (other than rural banks), medium-sized or large-sized enterprises in Shenzhen
• From 2009: Rural banks, medium-sized or large-sized enterprises in Shanxi and Yunnan Province
• From 2010: medium-sized or large-sized enterprises in Guangzhou, Shaanxi Province and Xiamen
• From 2011: medium-sized or large-sized enterprises in Fujian Province, Qingdao and Shanghai
On 9 April 2010, the MOF released a “roadmap” for ongoing international convergence of accounting standards (Caikui [2010] No. 10). Under the roadmap, China will bring up the unique issues of the emerging market economy and will make a strong contribution to the achievement of a single set of high quality global accounting standards in response to the G20 recommendations.
Since the implementation of ASBE (2006), the MOF has issued:-
• Four Interpretations (ie Interpretation No. 1 (Caikuai (2007) No 14), Interpretation No. 2 (Caikuai (2008) No 11); Interpretation No. 3 (Caikuai [2009] No. 8) and Interpretation No. 4 (Caikuai [2010] No. 15)
• one supplementary Explanatory Guidance of ASBE (2006) (first launched in April 2007, revised in September 2008) ; and
• Provision of Accounting Treatments Relating to Insurance Contracts (Caikuai (2009) No 15)
• to give authoritative guidance on newly identified accounting issues not specifically addressed in ASBE (2006) or issues where unsatisfactory or conflicting interpretations have developed or likely to develop in the absence of such guidance.
This new edition has covered specific provisions as set out in the above Interpretations and guidance, where relevant, to help readers understand not only the accounting principles but also the practical accounting treatments.
The Hong Kong Master GAAP Guide, in its 11th Edition, is a handy desktop reference book and provides comprehensive, user-friendly and up-to-date commentary on Hong Kong’s approved accounting standards.
Features & Benefits
- Handy bound book
- English commentary illustrated with worked examples
- Well-structured index
- Annual editions to keep subscribers abreast of current and future developments in China accounting standards.
- Detailed and systematic analysis provides reader-friendly and practical reference for practical use.
- Written in a plain and straightforward manner for easy understanding.
- Comparison with international accounting standards to illustrate similarity and differences between Chinese accounting standards and international accounting standards.
