China’s Accounting Law: General provisions on accounting practice of companies and enterprisesAccording to Article 24 of the Accounting Law, the accounting practice of companies and enterprises shall comply with all the provisions of the Accounting Law, including but not limited to the provisions pertaining to the cont…
China’s Accounting Law: Requirements for financial reports(1) The requirements for accounting methods in financial reports. Accounting method refers to the specific method of accounting calculation used by an entity in accounting practice.(2) Requirements for contingencies in financial reports. A contingency refers to…
China’s Accounting Law: Composition of financial reportsFinancial statements are a structural representation of the financial position, operating results, and cash flows of an enterprise. Financial statements should at least include the following components: balance sheet, income statement, cash flow statement, statem…
China’s Accounting Law: Meaning and types of financial reportsA financial report refers to a written document that an entity submits to the competent authority or publicly discloses to the public in accordance with the law and reflects the financial position and operating results of the entity. Financial reports are a …
China’s Accounting Law: Requirements for accounting books1. Requirements for the registration of accounting booksThe first paragraph of Article 15 of the Accounting Law states, "The registration of accounting books shall be based on audited accounting vouchers and comply with the applicable laws, administrative re…
China’s Accounting Law: Types of accounting booksAccounting books are classified into the following types:1. General ledgerGeneral ledger, also known as general ledger account, is a ledger book that provides information based on the general ledger items.2. Sub ledgerSub ledger, also known as subsidiary ledger, is a le…
China’s Accounting Law: Concept and functions of accounting booksAccounting books refer to books that are composed of interrelated account pages in a format and are used to record and reflect relevant economic transactions in a chronological and classified manner. Setting up accounting books is an important part of acc…
China’s Accounting Law: Review of accounting vouchersIn order to ensure the authenticity, legality, and accuracy of accounting data, supervision of the receipt and payment of funds, and provision of complete accounting information, accounting vouchers should be strictly reviewed.
Robert Zhang 
Steve Li 