Since January 1, 2007, the new edition of the China Accounting Standards (“New CASs”) has been applied for almost 2 years. During this period, the advantages of the New CASs (incl. application of fair value, balance sheet perspectives, etc.) have been approbated by all parties. At the same time, the PRC Ministry of Finance ,as well as the State Administration of Taxation, has issued a series of explanations and clarifications regarding the application difficulties, hence improving the new CASs’ practicability.
The New CASs have been substantially convergent with the International Financial Reporting Standards (IFRSs), and the latter is also in the process of converging with the U.S. GAAP. As a result, it becomes urgent for those local private enterprises to understand the New CASs, whether they hope to get finance from local or overseas capital markets. And for China’s foreign invested enterprises, converting from the current “Enterprise Accounting Policies” to the New CASs will leverage them to reduce the workload of preparing different versions of financial statements as the New CASs have been very close with their parents’ accounting policies. Thus it is an inevitable choice to adopt the New CASs sooner or later.
In the previous course of “Comparative Analysis and Application of CASs”, we have had in-depth study of those commonly used standards including inventory, fixed asset, revenue and income tax, etc. We will, in this advanced course, systematically analyze and study the following more difficult and important accounting topics.