The Supreme People’s Court Regulated Bankruptcy
The authority issued judicial explanation on how to deal with bankruptcy liquidation case. It’ll go into effect on August 18. As regards enterprise with no one take responsibility or with confusion financial condition, People’s Court can terminate their judicial person qualification.

New Regulations Concerning Management of Foreign Exchange Issued
August 6th, the State Council issued the Regulation in order to strengthen the management of foreign exchanges, maintain the balance of international payments and promote the healthy development of the national economy.

Proofreader : Meyoung

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.

In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

The China Association of Mining Right Appraisal (CAMRA) issued 9 standards as follows: Basic standards on mining right appraisal technology, The procedure standards of mining right appraisal, Criterion on business engagement letter of mining right appraisal, Criterion on preparing reports of mining right appraisal, Criterion on income appraisal method, Criterion on cost appraisal method, Criterion on market appraisal method, Guide on price appraisal of mining right, Guidance on appraisal datum date. They’ll go into effect on September 1^st.

Enterprise Financial Management will be Evaluated

The Ministry of Finance issued “Trial Measures Concerning the Enterprise Internal Financial Management Evaluation”. It includes evaluation method, evaluation procedure, requirement on evaluation, evaluation resulet and so on. It also explained how to evaluate in quantitative and qualitative way.

The Mainland and Hong Kong Increased Mutual Exemption Subjects

On July 29^th, the Ministry of Finance and the Hong Kong Financial Services and the Treasury Bureau inked related agreement.

Proofreader : Meyoung

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.

In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

Senior Member of the CAS
The China Appraisal Society will set up the highest range of member, which is senior member.

IMA issued Report
July 14th, the Ministry of Commerce and the Institute of Management Accountants issued the research reports, named “the Method of Costing and Cost Management of Chinese Enterprises”.

Double Auditing on A+H Listed Companies will be Abolished
The China Securities Regulatory Commission has cancelled the double auditing on financial listed companies and B stock companies in 2007.

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.

In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

Mr. Wang Jun, deputy minister of MOF, put forward the idea of proactively enhancing the international convergence of accounting and auditing standards, promoting the cooperation within the accounting profession and international capacity, at the reception of ICAEW in February 13, 2008.

Profession Development

Chen Yugui, secretaty general of CICPA, pointed out that the professional service industry is the vital power of system innovation

Implementing the spirit of the 17^th National Congress of the Communist Party of China, pushing the development of accounting profession effectively and smoothly

Review of national-wide institutes of CPAs’ performance in 2007

Announcements

CICPA issues the announcement of Regulation of the inspection of CPA qualification

Laws & Regulations

Understandings and applications of the supreme court on the judicial explanations of compensation of civil rights encroachment cases for auditing activities of accounting firms

Technical Advisory Column

Opinions of the task force on the implementation of enterprises accounting standards

Firms Governance and Management

A valuable attempt on the development of small and medium-sized practices

Existing issues and measures on the governance of accounting firms

Auditing & Assurance

Discussion on the judicial accounting evaluation undertaken by CPAs

The impact of the Accounting Standards for Oil and Gas Production on mining enterprises

A simplified consideration on the auditing of the small-sized entities

Accounting

Discussion on related issues regarding the range of consolidation under the new standards

The impact of the fair value option on financial instrument

Practice Development

Promoting the firm’s development through broadening the range to serve the public

Special concerns on inspection of tangible assets of non-governmental entities

Law

Lawsuit consciousness and CPAs

Theory

Time pressure and judgment performance of CPAs

On June 11^th, the CICPA explained the handbook of examination on practice quality of accounting firms and trained the examiners. According to agenda, 15 firms with securities qualification will be examined in the first stage.

Securities Qualification of Appraisal Firms are Defined

On June 12^th, the Ministry of Finance and The China Securities Regulatory Commission defined 7 conditions for appraisal firms to apply securities qualification. The authority will strengthen the management and set up quit system.

The Top 100 Accounting Firms in 2008

On June 6^th, the CICPA issued the list of top 100 CPA firms based on integrative appraisement. According to the list, the total income of Top 100 CPA firms was 16.5 billion Yuan in 2007. It means 59% of the gross income of all firms in China. There are 17173 CPAs in Top 100. The Top 20 are: PWC, E&Y, DTT, KPMG, YueHua, Shulun Pan, Shine wing, Daxin, Wanlong, BDO Reanda, Tin Wha, China Audit, Pan China(Zhejiang), Vocation International Group, Zhonghe Zhengxin,  Ascenda, Beijing Jingdu, E&Y(Dahua), Xinghua, Zhonglei.

Liu Zhongli, president of CICPA, answers to reporters’ questions on the Several suggestions on supporting the expansion of service exportation of accounting firms

Nine Ministries and Commissions in China jointly issue the Several suggestions on supporting the expansion of service exportation of accounting firms

Profession Development

Series report on professional development and the construction of institutes

Announcements

CICPA issues the Guidance on related businesses of corporate bankruptcy cases undertaken by CPAs (trial)

CICPA issues the information disclosure system of CPAs and accounting firms

Notice of CICPA concerning financial report auditing of listed companies in 2007

Name list and regulations on the CICPA Registration and Management Committee

Name list and regulation on the CICPA Bankruptcy and Liquidation Professional Guidance Committee

Firms Governance and Management

Perceptions on the governance and leadership of CPA firms

To develop business with innovation, and create harmonization with progress

Professional Training

Discussion on the internationalization of professional talents construction

Practice on carrying out 30 guidance of professional talents training

How to establish a learning organization for accounting firm

Auditing & Assurance

Discussion on the auditing for Centralized Trading System of Security companies

Related issues on accounting and auditing for contingency

Change a point of view to discuss audit risk

Accounting

The practice of income tax accounting in consolidated statement

Problems and difficulties occurred during implementation of the Enterprise Accounting Standards

Case Study

The influence of two acquisition cases of the United States on the materially principle of CPAs

Theory

Several issues on using innovation ability of human resource in accounting firms

Mr.Xie Xuren, minister of MOF, puts forward requirements regarding the Chinese accounting profession in 2008, at the National Finance conference

Mr. Wang Jun, deputy minister of MOF, writes an article: A significant theoretical creation of the localization of Maxism

Mr. Liu Zhongli, president of CICPA, requests that thoroughly study the spirit of the 17^th National Party Congress of the CPC, and strengthen the professional construction in all respects

Profession Development

Joint Declaration of the China Accounting Standards Committee and the Hong Kong Institute of Certified Public Accountants on the converged China Accounting Standards for Business Enterprises and Hong Kong Financial Reporting Standards

CICPA’s job summarization of 2007 and outline of 2008

Professional Training

Discussion on the innovation of professional talents growing mechanism of accounting firms

A brief discussion on the cultivation of international professional talents of China’s accounting profession

Discussion on the competency enhancement of CPAs

Firms Governance and Management

My perception on learning the Guidance of Internal Governance of Accounting Firms

Perfection of the Internal Governance Mechanism with strengthening the three pieces of construction

Auditing and Assurance

Discussion on the auditing of anti-money laundering by CPAs

Discussion on related issues of the implementation of new standards

Accounting

Some issues on related accounting problems with the current Corporate Law

The contents and approach of professional judgment in new accounting standards

Theory

Research on the impact of the market concentration rate, assets scales of customers and the nature of CPA firms to the quality of auditing

A brief introduction on the thinking model of CPAs

Global Outlook

Methods of ensuring the sustainable development of Small and Medium-sized Practices

History

New rules on CFO in Insurance Company
The China Insurance Regulatory Commission (CIRC) is soliciting opinions on the “Provisions on the Management of CFO in Insurance Company”. Someone punished for providing false financial information won’t be allowed to be CFO.

CICPA Build up Foreign Consulting Commission on CPA Examination Reform
On May 23, the CICPA held the first meeting. The Commission consist of 12 experts, coming from accounting institutes and international accounting firms of British, Canada, Australia and so on.

159 Accounting Firms are Punished
The CICPA has checked the operation quality of accounting firms in 2007 and the result is publicized recently. It has punished 159 accounting firms and 288 CPAs.

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.

In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

According to the Ministry of Finance and the China Securities Regualatory Commission, only appraisal companies with following conditions can carry out securities appraisal: founded in according with laws and with the qualification of assets appraisal for at least 3 years, with internal control system such as quality control and be implemented well, with net assets more than 2 million Yuan, with more than 30 CPVs and so on.

New Rule on the Solvency of Insurance Group

On May 13^th, the China Insurance Regulatory Commission issued “the 14^th Rule on Preparing Solvency Report of Insurance Company: Insurance Group”, according to the Rule, insurance group should prepare solvency report regularly.

Appraisal Firms will be rated

The China Appraisal Society has began to appraisal all the appraisal firms. It’ll publicized the list of firms rated with AAA, AA and A before the end of June.

China CPAs has Donated more than 30 Million to help Victims

The CICPA publicized the number on May 21^st.

CASC signed memorandum of understanding with FASB
On April 18th , the China Accounting Standards Committee (CASC) entered into cooperating arrangement with FASB in order to strengthen  cooperate and communicate. It’ll promote the establishment of global accounting standards with high quality.

The Financial Reports of Insurance Asset Management Corporations should be Improved
On May 6th, the China Insurance Regulatory Commission (CIRC) required that, besides the financial reports, insurance asset management corporations should prepare financial supervision report, information on enterprise annuity under control and so on.

EU will approbate China Accounting Standards
EU suggests that China stock issuers should be permitted to Europe market with financial reports based on China Accounting Standards before the end of 2011.

Examination on Accounting Information Begin
The Ministry of Financial will inspect the accounting information of central enterprises and listed companies, the operation quality of accounting firms with securities qualification. It’ll begin in May and end in September.

Insurance Companies will Submit Annual Compliance Reports
Insurance corporations are required to submit annual compliance reports to the China Insurance Regulatory Commission (CIRC) in 2009.

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.

In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.