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Shanghai accountant is the person who in charge of accounting, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit.
Shanghai accountants must abide by the ethical standards and guiding principals of the region where they practice such as IFRS or GAAP. The most common accounting designations are CA, CMA and CGA. The type of educational background and designation that an individual has will determine their professional duties.
Shanghai accounting standards
Shanghai accounting standards are the accounting rules used in Chinese state-owned corporations in mainland China. They are currently being phased out in favor of generally accepted accounting principles or International Accounting Standards.
As of February 2010, the Chinese accounting standard systems is composed of Basic Standard, 38 specific standards and application guidance.
Chinese accounting standards are unique because they originated in a socialist period in which the state was the sole owner of industry. Therefore unlike Western accounting standards, they are less a tool of profit and loss, but an inventory of assets available to a company. In contrast to a Western balance sheet, Chinese accounting standards do not include an accounting of the debts that a corporation holds, and are less suitable for management control than for accounting for tax purposes.
This system of accounting is widely considered to be unsuitable for managing corporations in a market economy. As a result, Chinese corporations are gradually moving toward International Financial Reporting Standards. This has proven to be a massive undertaking. As a consequence Chinese companies who offer shares for sale in the United States used to be required to prepare three sets of statements, one using Chinese accounting standards (China GAAP), one using international standards (IFRS), and one use North American GAAP standards (US GAAP). However, since 2008 the U.S. Securities and Exchange Commission (SEC) allows foreign private issuers to use financial statements prepared in accordance with IFRS.
However, in recent years, The Finance Department of Chinese Government has issued new Chinese Accounting Standards which converge into IFRS and the similarity is almost 90–95%. The translation cost has been reduced greatly because of this measure.
HKATA, with a team of professional accountants and auditors, specializes in offering the service to analyze a company’s financial and accounting data, reduce the incidence of accounting errors.
Contact us
If you have further queries in Shanghai accountant, don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 21-31397142 21-58822399, or emailing to hkcfm-shanghai@163.com.
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