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 a situation where it is currently uncertain whether the ultimate result is a loss or a gain. Article 19 of the Accounting Law states, "Any security provided by an entity, pending litigation, and other contingencies shall be explained in the accounting statements in accordance with the national unified accounting system.”
(3) Requirements for preparing financial reports. According to Article 20 of the Accounting Law, financial reports shall be prepared based on audited accounting books, records, and relevant documents, and shall comply with the requirements of the Accounting Law and the national unified accounting system pertaining to the preparation of financial reports, submissions, and time limits for their submission.
(4) Requirements for signing and stamping financial reports. A financial report shall be signed and stamped by the principal of the entity, the chief accounting officer, and the chief of the accounting department (accounting supervisor), and shall also be signed and stamped by the chief accountant if the entity has a chief accountant. The principal of an entity shall ensure that the financial reports are true and complete.
Practising lawyers
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Robert Zhang
An international lawyer registered in Shanghai, China. Master's degreePublish…
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Steve Li
An international lawyer registered in Shanghai, China. Master's degreePublish…
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