China’s Accounting Law: Contents of internal supervisionTo exercise supervisory audit of the original vouchers;To supervise the accounting accounts;To supervise the physical items and funds;To supervise the financial statements;To supervise financial revenue and expenditure; andTo supervise other economic activities.
China’s Accounting Law: Basis for internal supervisionAn entity shall comply with the following rules and provisions in its internal supervision: ① The national financial laws, regulations, and rules; ② The accounting laws and regulations and the national unified accounting system; ③ The specific application rules a…
China’s Accounting Law: Internal Accounting Supervision(I) Concept and general requirements of internal supervisionInternal supervision refers to the supervision by the accounting department and accountants of an entity. Internal supervision should meet the following requirements: ① The responsibilities of bookkeepers…
China’s Accounting Law: Special provisions on accounting practice of companies and enterprisesAccording to the applicable provisions of the Accounting Law, in addition to the above provisions, corporate accounting practice shall also comply with the following provisions:(1) Companies and enterprises must recognize, mea…
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 …
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