International Law

China?s audit regulations ? Filings shortly due

By Chris Devonshire-Ellis

Getting prepared for your annual audit inspection

By Chris Devonshire-Ellis

BEIJING, Dec. 19 - All foreign invested businesses in China are required to prepare annual financial statements, including balance sheets and income statements for their annual Chinese audit. Such accounts must be in accordance with the Chinese accounting standards for business enterprises ? there are now no differences between standards for domestic and foreign enterprises. Foreign companies, including their legally responsible persons, must take full responsibility for the truthfulness, legitimacy and completeness of these financial statements. These documents must be completed ahead of the submission of consolidated accounts for tax purposes by the end of April every year, for the financial calendar year ending the previous December 31.

These statements will be used for computing the taxable and distributable profit. Accordingly, an annual audit by a firm of certified public accountants registered in the PRC is required under Chinese law.

There are a number of areas where you need to take particular care and where there are some differences between Chinese and Western accounting practice. These are guidelines only as every business is different. (more…)

Full post as published by China Briefing Blog on December 18, 2007 (boomark / email).