GET YOUR CHINESE WOFE ACCOUNTING RIGHT
From January 1, 2021, many new accounting measures related to revenue, leases, and financial instruments, will be applied to all entities that have already adopted the Chinese Accounting Standards for Business Enterprises (CAS). The new standards include:
- Chinese Accounting Standards for Business Enterprises No.14 – Revenue (2017) (CAS14);
- Chinese Accounting Standards for Business Enterprises No.21 – Leases (2018) (CAS21);
- Chinese Accounting Standards for Business Enterprises No.22 – Recognition and Measurement of Financial Instruments (2017) (CAS22);
- Chinese Accounting Standards for Business Enterprises No.23 – Transfer of Financial Assets (2017) (CAS23);
- Chinese Accounting Standards for Business Enterprises No.24 – Hedge Accounting (2017) (CAS24); and
- Chinese Accounting Standards for Business Enterprises No.37 – Presentation of Financial Instruments (2017) (CAS37).
New accounting standards will bring new challenges to the accounting workflow of companies and also make a difference to their daily business decisions, internal control, financial performance, among other factors. For this reason, we encourage all companies, including WFOE (Wholly Foreign Owned Enterprises), to make prepare for the new CAS, in order to meet the expectations of stakeholders and the requirements of regulators.
For a full due diligence and preparation plan for the key changes and contents of the new CAS14 regarding revenue, CAS21 regarding leases, and other Chinese accounting standards regarding financial instruments, the impact brought by these new standards on businesses, and the differences among the CAS, the International Financial Reporting Standards (IFRS), and the US Generally Accepted Accounting Principles (US GAAP), please get in touch with us at firstname.lastname@example.org