審時度勢，把握機遇完善中國會計準則體系

1、1,Framework and Implementation of Chinese Accounting Standards System for Business Enterprises,Li HongxiaAccounting Regulatory Department Ministry of Finance, P.R. China May 22, 2006,,,2,Main Contents,The Framework

2、of Chinese Accounting Standards for Business Enterprises (CASs)The Characteristics of Chinese Accounting Standards for Business Enterprises (CASs)Experience Gained from the Development of CASsImplementation of CASs,,3

3、,Background,On 15 Feb, 2006, Chinese MoF released 1 Basic Standard and 38 specific standards, effective on Jan. 1, 2007 first in listed companies and extended to large and medium-sized enterprises gradually,,4,Background

4、,Marks the official establishment of Chinese Accounting Standards System for Business EnterprisesSuits the development process of market economy of ChinaAchieves convergence with IFRSs in terms of principles on account

5、ing recognition, measurement and reporting Prescribes special provisions for transactions given domestic situations, eg., related party disclosures----Result of experiences summarized from Chinese economic and accounti

6、ng reform and cooperation between CMoF and IASB,,5,Background,Standardize business behaviorsEnhance the quality of accounting informationReduce cost of raising capitalImprove corporate governance structureFacilitate

7、business enterprises to implement “coming in” and “going out” strategy,,6,I. Framework and Characteristics and Chinese Accounting Standards for Business Enterprises (CASs),7,The Framework of Chinese Accounting Standards

8、 System(1),The Chinese Accounting Standards System for Business Enterprises Consists of 1 Basic Standard and 38 specific standards which are divided into two levels:First level: the Basic StandardSecond level: spec

9、ific standards,,8,The Framework of Chinese Accounting Standards System(2),The Framework of Chinese Accounting Standards System,First Level,Second Level,,9,The Framework of Chinese Accounting Standards System(3),Basic S

10、tandardPlays a leading roleMainly stipulates the objectives of financial reporting, recognition and measurement principles, underlying assumptions of accounting, primary characteristics of accounting information, reco

11、gnition, measurement of accounting elementsIt is equivalent to the IASB’s Framework for the Preparation and Presentation of Financial Statements and the FASB’s Concept Statements,,10,The Framework of Chinese Accountin

12、g Standards System(4),Specific StandardsFormulated according to the Basic Standard Divided into three categories – accounting standards for general businesses, accounting standards for specific businesses in special i

13、ndustries and reporting standards,,11,The Framework of Chinese Accounting Standards System(5),Accounting Standards for General Businesses Mainly stipulate recognition and measurement requirements for general econo

14、mic businesses that are broadly applicable to all kinds of enterprisesInclude: Inventory, Fixed Assets, Investment Property, Leases, Revenues, Employee Benefits, Share-based Compensation, Income Taxes, Foreign Curr

15、ency Translation, Borrowing Costs, Investment, Corporate Annuity, Earnings Per Share, Intangible Assets, Impairment of Assets, Contingencies, Recognition and Measurement of Financial Instruments, Transfer of Financial As

16、sets, Hedging Transaction, Presentation and Disclosure of Financial Instruments, and Business Combinations, etc.,,12,The Framework of Chinese Accounting Standards System(6),Accounting Standards for Specific Businesses

17、Mainly stipulate recognition and measurement requirements of specific businesses in special industriesInclude: Oil and Natural Gas Extraction, Biological Assets, Insurance Contract and Reinsurance Contract , etc.,

18、,13,The Framework of Chinese Accounting Standards System(7),Reporting Standards Mainly stipulate formats and contents for general-purpose statements that are widely applicable to all kinds of enterprisesInclude: Pr

19、esentation of Financial Statements, Cash Flow Statements, Consolidated Financial Statements, Interim Financial Reporting, Segment Reporting, Related-party Disclosures , Earnings per share etc.,,14,II. The Characteristics

20、 of Chinese Accounting Standards System for Business Enterprises (CASs),15,Characteristics of CASs (1),Achieved substantial convergence with IFRSsExcept very few differences in related party disclosure and reversal of a

21、sset impairment, it has achieved substantial convergence with IFRSsJS signed by CASC and IASB identified: convergence with IFRSs was one of fundamental objectives to set CASs with an attempt to bring the same result f

22、or those applying CASs as those applying IFRSsIASB Chairman commented at the Release Conference of CASs “ CASs realized substantial convergence with IFRSs”A successful cooperation and attempt between CMoF and IASB in p

23、romoting international convergence proactively,,16,Characteristics of CASs (2),Suits the development process of market economy of ChinaEnterprises restructuring frequently occurs. Employee stock option piloted. Rapid d

24、evelopment of financial and insurance market make it increasingly urgent to guard against and control the financial controlCASs system covers standards for business combination, share-based payment, recognition and meas

25、urement of Financial instruments, direct and re-insurance contracts etc. Prescribes not only accounting for business combinations involving entities not under common control, but also those under common control, being t

26、he former identical to IFRS 3, while the latter a complement to IFRS 3Share-based payment and derivative financial instruments are required to recognize in financial statements.Vigorously promote reform of SOEs and str

27、engthen supervision and control over financial risk,,17,Characteristics of CASs (3),A logically consistent system, with Basic Standard having legal authorityThe newly issued Basic Standard plays an equivalent role to Co

28、nceptual Framework of IASB. The difference is that It is part of national administrative regulation, while IASB Framework does not consist part of so-called IFRSsSpecific standards stipulate based on Basic Standard, wh

29、ich make CASs system a logically consistent, coherent system Objective of financial reporting: reflect management accountability and decision making usefulnessQualitative characteristics: reliability, relevance, under

30、standability, comparabilityMeasurement attributes: historical cost, fair value, RC,NRV, PVMeet the economic development at present and well beyond thus protect interests of investors and the public,,18,Characteristics

31、of CASs (4),Properly introduced fair value measurement attribute and break through historical costFor investment property, financial instruments, business combinations involving entities not under common control, debt

32、restructuring and non-monetary asset exchange, fair value is adopted provided certain criteria satisfied. When adopting fair value to measure investment property, the prerequisite is the existence of active market and co

33、ntinuing availability of fair value information regarding the asset Introduction of fair value contributes to the faithful representation of value of assets and liabilities, timely reflect the movement of market and th

34、ereby realize the objective of financial reporting,,19,Characteristics of CASs (5),Establishes a complete system of financial reporting and implement full disclosure principleUnder CASs system, enterprises are required

35、 to prepare, as a minimum requirement, balance sheet, income statement, cash flow statement, statement of changes in owner’s equity, and notesAll subsidiaries are required to incorporate into consolidated financial sta

36、tements of the group. Segment information based on business and geographic locations and interim financial reporting are also formulated These reporting standards implement full disclosure principle and establish a com

37、prehensive financial reporting system to facilitate the communication between enterprises, investors and creditors, thus increase market efficiency and promote effective supervision.,,20,III.Experiences Gained from the

38、Development of Chinese Accounting Standards for Business Enterprises (CASs),21,Experiences From Developing CASs (1),A good understanding of international convergence of accounting standards and implemented consistently d

39、uring the whole processConvergence is a progress and development trend of current financial accountingConvergence does not mean being identical word for word. Convergence is a bilateral or multilateral interaction bet

40、ween NSS and IASBConvergence is not the terminal but a new starting point,,22,Experiences From Developing CASs (2),A sound cooperation and communication mechanism for achieving convergence has been establishedDomestica

41、lly, there are 22 CASC members and 160 consulting experts representing academia, preparers, analysts, auditors providing technical support to development.Internationally, regular meeting both policy and working level wi

42、th IASBNew appointments in IASCF Trustees and SAC: President of CICPA and Secretary-General of CASCSecond a senior staff to IASB to participate in IFRSs setting process.,,23,Experiences From Developing CASs (3),Substan

43、tial convergence with IFRSs was highlighted during the development processSubstantial convergence means that the principles of recognition, measurement and reporting are same as those in IFRSs, with the intention to pr

44、oduce same result in financial statements of enterprises either applying IFRSs and CASsBeing a part of national legal system, structure, style of writing and wording of sentence of CASs were adapted in a way to comply

45、with the language style of Chinese legal system and easily understood by the pratitioners.,,24,Experiences from Developing CASs (4),Special provisions conforming to domestic situation were formulatedSOEs that are only u

46、nder state control but not subject to control, common control, significant influence are not regarded as related parties, thus exempt from disclosing transactions occurring between them. IASB has put IAS 24 revision on i

47、ts May Board meeting agenda. While IFRS 3 is silent on accounting for business combinations involving entities under common control, the equivalent CAS provides accounting treatment applied to this broadly-existent bu

48、siness combinations in China,,25,IV.Implementation of Chinese Accounting Standards for Business Enterprises (CASs),,26,Implementation of CASs (1),Draft and release Implementation GuidanceIG comprises two types of conte

49、nts:Interpretation to standards: mainly focus on the key points, difficult implementation issues in standards, coupled with illustrative examplesChart of accounts and financial statements: set up a number of accounts

50、consistent with CASs and covered different sectors, provide sample format of financial statements and preparation interpretationIG is an integral component of CASs system and to be issued by CMoF by this August,,27,Imp

51、lementation of CASs (2),Conduct training in a planned and well scheduled manner Training to listed companies, CPA firms and regulatory departments such as CSRC, CBRC, CIRC etc.Training to local financial bureau—branc

52、hes of MoF, as mentors in their respective jurisdictions Purpose: To ensure proper understanding and consistent application of CASs,,28,Implementation of CASs (3),Select some listed companies to conduct mock testing b

53、efore effective dateChoose some listed companies, jointly with CSRC, to conduct mock testing prior to implementation to verify the practicability of CASs system and estimate the impact on net assets and P/L of companie

54、s Identify problems that might arise in the first-time adoption of the System and work out the solutions and countermeasures as early as possible,,29,Implementation of CASs (4),Coordinate with regulatory departments to

55、 strengthen supervision over the implementation of CASs in listed companiesStrengthen supervision over the implementation with relevant government departmentsGive full play to the role of auditors in auditing financial