Managing Your Accounting and Bookkeeping in China – New Issue of China Briefing Magazine

April 2, 2015 Posted by China Briefing Reading Time: 3 minutes

The latest issue of China Briefing Magazine, titled “Managing Your Accounting and Bookkeeping in China,” is out now and available to subscribers as a complimentary download in the Asia Briefing Bookstore through the month of April. To subscribe to China Briefing and download this issue for free, please click here.

Contents:

“Accounting” for Differences in China’s Financial Reporting
Foreign Currency Accounting in China
The Benefits of Outsourced Accounting in China

Be it for tax filing, regulatory compliance or internal tracking purposes, accounting is an important part of any business. This is as true for a business in China as it is anywhere else.

Relative to most of the world however, China has only recently embraced the market economy, and with that the practice of accounting. For this reason, some of the accounting and bookkeeping practices that are an everyday occurrence in China may seem unusual to foreign investors new to the country.

Despite these remaining idiosyncrasies, China has come a long way in converging its accounting standards with international practice. This significantly simplifies the integration of a foreign investor’s Chinese subsidiary into its multinational group of companies.

While the Chinese government is making steady progress on its way to RMB internationalization, strict capital controls continue to pose an obstacle.

As a means of controlling the currency flows into and out of the country, the Chinese government requires a special report from foreign-invested companies about their foreign currency holdings. Ultimately, foreign companies that do not comply with this requirement may lose the ability to remit foreign currency abroad. Therefore, keeping correct records of one’s foreign currency transactions is crucial.

In this issue of China Briefing, we discuss the difference between the International
Financial Reporting Standards, and the accounting standards mandated by China’s
Ministry of Finance. We also pay special attention to the role of foreign currency in
accounting, both in remitting funds, and conversion. Lastly, in an interview with Jenny
Liao, Dezan Shira & Associates’ Senior Manager of Corporate Accounting Services in Shanghai, we outline some of the pros and cons of outsourcing one’s accounting function.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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