China’s Accounting Law: Accounting Practice (VI) Computerized accountingComputerized accounting is the abbreviation for the application of modern electronic and information technology, which is mainly based on computers, to accounting work. It mainly applies electronic technology to replace manual bookkeeping, accounti…
China’s Accounting Law: Accounting Practice (V) Functional currencyFunctional 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 e…
China’s Accounting Law: Accounting Practice (IV) Accounting yearArticle 11 of the Accounting Law states, "An accounting year starts on January 1st and ends on December 31st in Gregorian calendar".
China’s Accounting Law: Accounting Practice (III) The content of accounting practiceAccording to Article 10 of the Accounting Law, the following matters shall be subject to accounting procedures and accounting practice: ① The receipt and payment of funds and securities; ② The receipt, distribution, increase, decrease…
China’s Accounting Law: Accounting Practice (II) Basic principles of accounting practiceArticle 9 of the Accounting Law states, "An entity shall conduct accounting, fill out accounting vouchers, register accounting books, and prepare financial accounting reports based on actual economic and business transactions. …
China’s Accounting Law: Accounting Practice(I) Concept of accounting practiceBasically, accounting practice refers to the management activities with currency as the main measurement, including continuous and systematic recording, calculation, and analysis of the operation and management activities or budget execution p…
China’s Accounting Law: Management System of Accounting Work(1) Management system of accounting work. According to Article 7 of the Accounting Law, the management system of accounting work in the PRC is as follows: ① The Ministry of Finance of the State Council shall administer the accounting work throughout the coun…
China’s Accounting Law: Basic Duties of Accounting Departments and Accountants(1) An entity must establish accounting books in accordance with the law and ensure their authenticity and completeness;(2) The principal of an entity shall be responsible for the authenticity and completeness of the accounting work and accou…
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