China’s Accounting Law: Accounting Practice
China’s Accounting Law: Accounting Practice
Functional currency refers to the currency used for daily registration of accounting books and preparation of accounting statements. According to Article 12 of the Accounting Law, RMB shall be used as the functional currency in accounting practice. An entity whose business revenues and expenditures are mainly in currencies other than RMB may choose one of such currencies as the functional currency, provided that they shall be converted into RMB when preparing financial reports.
Robert Zhang 
Steve Li 