China issues guideline for applying new accounting standards at enterprises

China's Ministry of Finance has issued guidelines for applying new accounting standards at domestic enterprises, said an official with the ministry on Tuesday.

The move marked the basic completion of China's new accounting standard system for enterprises, which includes 39 specific standards published by the ministry on Feb. 15, in a bid to help companies follow international practices in accounting.

The guidelines will help enterprises adapt to the new system, which is due to be applied to listed companies on Jan. 1 next year, said the official, who asked to remain anonymous.

Also on Jan. 1, 48 new auditing standards for certified public accountants will be implemented at domestic accounting firms.

The new accounting standard system aims to improve the competitiveness of Chinese enterprises by demanding more transparent and valuable fiscal reports, said Vice Minister of Finance Wang Jun at a training class for accountants.

More transparent fiscal report will allow investors and the public better know the true financial picture of companies and in turn help enterprises raise financing, said Ha Jiming, an economist with the China International Capital Corporation Limited.

Source: Xinhua