News

China Accounting News Weekly[No. 39]2008.6.7-2008.6.26

accountingview — Fri, 04 Jul 2008 11:10:00 GMT

Examination on Accounting Firms will Begin

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.

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.

China Accounting News Weekly[No. 38]2008.5.24-2008.6.6

accountingview — Sat, 07 Jun 2008 06:29:00 GMT

Individual Accounting Firms is Authorized
The Ministry is soliciting opinions on amendments of the “CPA Law”. It particularly regulates the organization, foundation, combination, separation or dissolution of accounting firms. The individual accounting firms is authorized for the first time.

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:

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.

China Accounting News Weekly[No. 37]2008.5.10-2008.5.23

accountingview — Sun, 25 May 2008 14:35:00 GMT

New Requirement on Qualification of Appraisal Companies Issued

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.

Note:

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.

China Accounting News Weekly[No. 36]2008.4.29-2008.5.9

accountingview — Fri, 09 May 2008 08:31:00 GMT

Strengthen the Research on Budget Accounting
One officer from the Ministry of Finance said that it’s very important to carry out research on six areas as follows: department budget, the income and payment system of state treasury, the government procurement system, the classification of government income and payment, separating the income and payment and government accounting reform.

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:

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.

Firms to get tariffs and VAT windfall

accountingview — Wed, 07 May 2008 00:59:00 GMT

CHINA will refund local companies the tariffs and value-added tax they paid on imports of key parts and raw materials for manufacturing wind-power equipment as the world's fastest-growing economy promotes cleaner energy.

The rebates are backdated to January this year, the Beijing-based Customs General Administration of China said in a statement on its Website yesterday. The benefit only applies to parts and materials imported for making wind turbines with a capacity of 1.2 megawatts or more, it said. The government will scrap the tax benefit given to domestic and foreign companies for importing fully assembled wind-power units with less than 2.5 megawatts of capacity from May 1, Customs said.

Shanghai Daily

China Accounting News Weekly[No. 35]2008.4.5-2008.4.11

accountingview — Mon, 14 Apr 2008 07:55:00 GMT

CICPA Enters into Cooperative Arrangement With ICPAS
On April 8, CICPA entered into an Agreement with the Institute of Certified Public Accountants of Singapore (ICPAS) to enhance cooperation in training and professional development. According to the Agreement, each of them can hold forums or proseminars on behalf of members of CICPA and ICPAS, as well as each one accepts the continuing education provided by another one.

Auditing on Financial Industry Begins
The National Audit Office of the PRC will audit the asset and debt of Industrial and Commercial Bank of China, China Construction Bank, CITIC Group. It’ll also carry out special investigation on the shareholding reform of the China Merchants Bank, the Bank of Communications and the Bank of China.

Tax Return for Consumption Tax Unified
On March 31, the State Administration of Taxation issued tax returns for tobacco, alcoholic drinks and alcohol, gasoline and diesel oil, motor vehicle and other taxable consumer goods.

Finance Companies should Disclose Audited Financial Reports
China Foreign Exchange Trade System & National Interbank Funding Center required that finance companies, taking part in interbank funding, should disclose such information as audited financial reports of 2007.

Note:

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.

Tax rebate to spur nuclear power firms

accountingview — Fri, 11 Apr 2008 03:41:00 GMT

CHINA will give a value-added tax rebate to nuclear power firms as the country strives to develop its nuclear power industry, according to the Ministry of Finance and the State Administration of Taxation.

Nuclear power companies would get a rebate of 75 percent each year during their first five years of operations, according to a statement posted on the ministry Website yesterday. The amount of the rebate would decrease to 70 percent in the following five years and 55 percent for the third five year period. The rebate took effect on January 1, said the statement.

From Shanghai Daily 2008-4-11

China Accounting News Weekly[No. 34]2008.3.1-2008.3.7

accountingview — Wed, 12 Mar 2008 01:56:00 GMT

CIIA is soliciting opinions on Standards and Guide
Recently, the China Institute of Internal Audit (CIIA) is soliciting opinions on “Continuing Education Standards of Internal Auditor”, “Auditing Standards on Information System” and “Guide on Auditing Report”.

Accounting rules on the New Rural Cooperative Medical Fund issued
On February 10, the Ministry of Finance issued the accounting rules. It’ll go into effect on January 1, 2008.

Regulation on state-owned assets manage budget of central enterprises issued
On March 5, the State-owned Assets Supervision and Administration Commission of State Council (SASAC) issued the Regulations. It required that expend should be in accord with income without deficit and the balance would be carried forward to the next year. According to the Regulation, expend and income should be managed separately.

Note:

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.

China Accounting News Weekly[No. 33]2007.12.22-2008.1.11

accountingview — Wed, 16 Jan 2008 02:35:00 GMT

Policy on Accounting Firms’ Carrying out Business Abroad will be Issued
On January 10, the CICPA said that “Opinions on Supporting Accounting Firms in Expanding Export of Services”, initiated by the Ministry of Commerce, would be issued by 10 ministries and commissions jointly such as the Ministry of Commerce, the Foreign Ministry, the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission of the State Council, etc.

New Kind of Partnership Accounting Firms Appears in Shenzhen
14 Special General Partnership Accounting Firms has been licensed by Shenzhen Financial Bureau. They are also the first group in China.

New Rules on Non-listed Banking Financial Institutions’ Implementing the New Accounting Standards
On December 29, the Ministry of Finance issued the Rules. According to the Rules, non-listed banking financial institutions should apply retrospective adjustment method to important changes in accounting policy on the first day of implementing new standards. It also pointed out specific methods of retrospective adjustment on provisions, financial assets and liabilities, long-term equity investment, etc.

Proofreader : Littlerui

Note:

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.

Tax threshold plan will benefit poorer families

accountingview — Tue, 25 Dec 2007 01:22:00 GMT

CHINA is proposing to raise its monthly individual income tax levy threshold from the current 1,600 yuan (US$217.69) to 2,000 yuan, according to a draft amendment to the law on individual income tax.

The threshold increase is to help medium- and low-income earners hit by the recent price increases of some goods.

Yesterday, the draft amendment was submitted to the Standing Committee of the National People's Congress, China's top legislature, for deliberation. The amendment is expected to take effect from March 1.

Finance Minister Xie Xuren told the legislative session that "raising the threshold of individual income tax collection from 1,600 yuan to 2,000 yuan means a reduction of 30 billion yuan in state revenue."

The rise in the threshold would free 70 percent of income earners from paying income tax. The current threshold of 1,600 yuan exempts 50 percent of income earners from tax.

Xie said: "The increase of individual income tax collection threshold is within the country's financial bearing capacity and aims to relieve the economic burden of medium- and low-income earners."

China's consumer price index climbed 6.9 percent in November, the fourth consecutive month the index had been above six percent.

The individual income tax cutoff point was raised from 800 yuan a month to 1,600 yuan in 2006. This was based on a typical citizen's basic living costs.

"Over the past two years, a citizen's consumption expenditure for basic living further increased. This required us to readjust the individual income tax starting point again," Xie said.

He predicted that every income earner would bear an annual expenditure of as much as 19,030 yuan, or 1,586 yuan per month, for a family's food, clothing, accommodation and transport. The trend was for further increases in expenditure, therefore the individual income tax cutoff point was adjusted to 2,000 yuan a month.

A recent survey of 3,698 people showed that 97 percent said the current individual income tax cutoff point should be readjusted.

Wang Yijiang, an economic management professor at the Beijing-based Tsinghua University, said that the country's fast economic development meant the government could afford the tax cut.

The Ministry of Finance predicted the country's financial revenue in 2007 would exceed 5 trillion yuan, up 31 percent from the previous year.

Wang believed the increase in the threshold would help narrow the gap between rich and poor.

China is implementing a national individual income tax threshold. Some academics believe there should be different tax thresholds in different regions.

They said the cost of living in cities such as Shanghai, Beijing and Guangzhou was high and the tax threshold should be higher.

Xinhua 2007-12-24