Finance On The Amendment Of The Decision Of The Accounting Standard For Business Enterprises-Basic Standard (As Amended In 2014)

Original Language Title: 财政部关于修改《企业会计准则――基本准则》的决定(附2014年修正本)

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201503/20150300398679.shtml

Finance on the amendment of the decision of the accounting standard for business enterprises-basic standard (as amended in 2014) (July 23, 2014 the Treasury announced come into force on the date of promulgation, 76th) in order to adapt to the actual needs of the enterprise and capital market development in China, realizing the enterprise sustained convergence of accounting standards and international financial reporting standards, by the Ministry of finance decision of the Ministerial Conference, 42nd article of the basic norms of accounting standards for business enterprises--the fifth amended to read: "(e) fair value. Under the fair value, the assets and liabilities in accordance with market participants at the measurement date occurs in the orderly transaction of sale price to receive or transfer the debts have to be paid by measurement.



Purposes from the date of publication of this decision.

    The accounting standard for business enterprises-basic guidelines be revised according to this decision, republished.

    Appendix: accounting standard for business enterprises-basic standard 2014 (revised)

    (February 15, 2006 the Ministry of Finance announced on July 23, 2014, the Ministry of finance Decree 33rd 76th announced that as of the date of promulgation of the amendment of the decision of the Ministry of Finance on revising)

    Chapter I General provisions

    First in order to standardize the accounting confirmation, calculation and reporting, guarantee the quality of accounting information under the People's Republic of China accounting law and other relevant laws, administrative regulations, these guidelines have been formulated.

    Second guideline applies to in the People's Republic of China established within enterprises (including companies, the same below).

    Article accounting standards for business enterprises include the basic guidelines and specific criteria developed should follow the guidelines for specific guidelines. Fourth Enterprise shall prepare a financial report (also known as the financial report, the same below).

Objective of financial statements is to provide users of financial accounting reports provided with the enterprise's financial position, operating results and cash flows and other related information, reflecting the implementation of management accountability, useful to financial statement users in making economic decisions.

    Financial statement users include investors, creditors, Governments and the relevant departments and the public.

    Fifth of the Enterprise shall, on its own transactions or events for accounting confirmation, calculation and reporting.

    Article sixth of the accounting confirmation and measurement and reporting should be based on continuing operations as a precondition.

Article seventh should define the accounting period, close the accounts and prepare financial and accounting reports in stages. Accounting period is divided into annual and medium-term.

    Medium-term refers to the reporting period shorter than a full fiscal year.

    Eighth accounting should be measured in money.

    Nineth enterprises should be based on accrual accounting, measurement and reporting. Tenth Enterprise shall, in accordance with the economic characteristics of the transactions or events that determine the accounting elements.

    Accounting elements include the assets, liabilities, owner's equity, revenue, expenses, and profits.

    11th enterprises shall apply the double entry bookkeeping bookkeeping.

    Chapter accounting information quality

    12th enterprises should be based on actual transactions or events as the basis for the recognition, measurement and report objectively reflect the consistent with recognition and measurement requirements of the accounting elements and other related information, accounting information is accurate and true, completely.

    13th the accounting information provided by an enterprise should report and financial accounting related to the economic decision-making needs of users and contribute to the users of financial and accounting reports of past, present, or future evaluations or forecasts of the situation.

    14th Enterprise provides accounting information must be clear and easy for users of financial statements to understand and use.

15th enterprises provide accounting information must be comparable. Same different same or similar transactions or events occurred during the period, shall adopt uniform accounting policies, may not be altered.

Absolutely necessary to change, it should be explained in the notes.

    Different companies the same or similar transactions or events occurred, stated accounting policies should be adopted to ensure consistent accounting information, comparable to each other.

    16th Enterprise shall, in accordance with the transactions or the substance of the matter in recognition, measurement and reporting, and not merely according to the legal form of the transaction or event.

    17th Enterprise provides accounting information shall reflect the financial position, operating results and cash flows of all important transactions or matters related to the.

    18th enterprise accounting for transactions or events recognition, measurement and reporting should be kept with due care should not be overvalued assets or income, undervalued liabilities or expenses.

    Article 19th of transactions or events that have occurred, accounting confirmation, calculation and reporting should be carried out promptly, early or delayed.

    The third chapter assets

20th assets refer to past transactions or events, and are owned or controlled by the company, is expected to bring economic benefits to the enterprise resources. Referred to in the preceding paragraph the past transactions or events that includes the Act of purchase, manufacture, construction, or other transaction or event.

Transactions or events expected to occur in the future are not asset.

Owned or controlled by a business, refers to the ownership of a resource, a resource title or not, but the resource controlled by the enterprise.

    Expected to bring economic benefits to the enterprise, is directly or indirectly lead to the inflow of cash and cash equivalents the potential.

21st in line with the definition of assets provided for in standard 20th resources, if the following conditions are met at the same time, recognized as an asset:

(A) the economic benefits associated with the resource is likely to flow to the enterprise;

    (B) the resource's cost or value can be measured reliably.

    22nd item that meets the definition of assets and asset recognition criteria should be included in the balance sheet; meets the property definition, but does not meet the asset recognition criteria items should not be included in the balance sheet.

    The fourth chapter liability

Article 23rd liabilities refer to past transactions or events, is expected to lead to an outflow of economic benefits at present obligations of the enterprise. Present obligation refers to the enterprise's obligations under the current conditions.

    Obligations for future transactions or events occurred, does not belong to a present obligation and should not be recognized as liabilities.

Article 23rd 24th in accordance with the guidelines defined obligation of indebtedness, in both of the following conditions are recognized as liabilities:

(A) economic benefits from this obligation is likely to flow out;

    (B) the amount of the outflow of economic benefits in the future can be measured reliably.

    25th items that meet the definition and recognition criteria should be included in the balance sheet; satisfies the definition, but items that do not meet the recognition criteria, and should not be included in the balance sheet.

    Fifth chapter of owners ' equity

26th of owner's equity is the assets of an enterprise after deducting all its liabilities have a residual interest by the owner.

    The owners ' equity of the company, also known as shareholders ' equity.

27th owners ' equity includes contributions from owners of capital, profits and losses directly included in the owner's equity, retained earnings, etc.

Gains and losses directly included in the owner's equity, refer to should not be included in the current profits and losses, and will lead to changes in owner's equity, and the capital invested by the owners or gains or losses not related to distribute profits to the owner.

Profit is a company formed by non-routine activities, can result in owners ' equity increased and the inflow of economic benefits regardless of the capital invested by the owners.

    Loss means the enterprise not the daily activities, and can reduce the owner's equity, has nothing to do with the distribution of profits to the owner of the economic benefits from it.

    28th amount depends on the measurement of assets and liabilities of owners ' equity.

    29th under owners ' equity accounts should be included in the balance sheet.

    The sixth chapter revenue

    Article 30th revenue refers to the form in the daily activities of enterprises, can result in owners ' equity increased, and has nothing to do with the capital invested by the owners of the gross inflow of economic benefits.

    31st revenue only economic interests is likely to flow into the leading enterprise asset increase or reduction of indebtedness, and inflow of economic benefits can be reliably measured can be confirmed.

    Article 32nd items meet the definition and recognition criteria of income, should be included in the income statement.

    The seventh chapter fee

    Article 33rd cost are properties that occur in their daily activities, and can reduce the owner's equity, has nothing to do with the distribution of profits to the owner of the economic interests of the total outflow.

    Article 34th expenses only if the economic benefits may flow causing business assets or increase in liabilities, and the outflow of economic benefits can be reliably measured can be confirmed.

35th enterprises for the production of products and provision of services can be attributed to the product cost, labor cost and other costs should be confirmed when product sales and service revenue, and has been selling products, providing labor costs such as included in the income statement.

Expenditure incurred do not produce economic benefits to the enterprise, or even able to generate economic benefits but does not meet or no longer meets the asset recognition criteria, should be recognised as an expense, included in the income statement.

    Business transactions or events leading to its assumed a liability and not recognised as an asset and should be recognised as an expense, included in the income statement.

    Article 36th in line with project cost definition and recognition criteria should be included in the income statement.

    The eighth chapter profit 37th profit is the operating results of an enterprise in a certain accounting period.

    Profit includes income after deducting the expenses from the net, directly included in the current profits of gains and losses.

    Article 38th directly to profit gains and losses of the current period, means shall be included in the current profits and losses, and will lead to changes in owner's equity, and the capital invested by the owners or gains or losses not related to distribute profits to the owner.

    39th profit amount depends on income and expenses, directly into the profit amount of profits and losses of the current period of measurement.

    40th item of profit shall be included in the income statement.

    Nineth chapter accounting measurement

    Article 41st parallel accounting elements meet the recognition criteria are recorded in the financial statements and notes (also known as the financial statements, the same below), the measurement shall be in accordance with the provisions of accounting measurement attributes, determining its amount.
42nd accounting measurement attributes include:

(A) historical cost. In historical cost of assets in accordance with the acquisition of the amount of cash or cash equivalents paid or by buying assets when the fair value of consideration to be paid.

Liability according to the existing obligations for the actual amount received amount or assets, or to assume existing obligations of the contract amount, or to repay debts in accordance with their daily activities is expected to pay cash or cash equivalents amount. (B) the replacement cost. Under replacement cost measures, asset follow the buy now the same or similar assets have to be paid the amount of cash or cash equivalents.

Liabilities at current payment of the debts have to be paid in cash or cash equivalents amount. (C) net realisable.

At net realisable value under the measures, assets in accordance with its normal sale can receive cash or cash equivalent amount deducted to completion of the asset is estimated will occur costs, estimated to cost of sales and related taxes from the amount. (D) the present value. Under the present value measurement of assets as expected from its use and eventual disposal of future net cash inflows generated by the discount amount.

Liabilities in accordance with the period payments on future expected net cash outflows of the discount amount. (E) fair value.

    Under the fair value measurement, assets and liabilities in accordance with a fair deal, the transactions are voluntary on both sides familiar with the assets Exchange or debt settlement amount.

    Article 43rd when accounting elements measurements shall, in General, using the historical cost, replacement cost, realisable net value, present value, fair value measurements, should be identified to ensure the accounting and payments can be made reliably measured.

    The tenth chapter financial report

44th article refers to providing financial accounting reports to reflect a specific date the financial situation of fiscal period and the operating results, cash flow, accounting information file. Financial and accounting reports including financial statements and the notes thereto, and other related information should be disclosed in the financial statements and information.

Financial statements shall at least include the balance sheet, income statement, cash flow statement.

    Small business financial statement may not include a cash flow statement prepared by.

    45th balance sheet referring to reflect in a statement on the financial situation of a specific date.

    Article 46th income statement refers to reflect the operating results of an enterprise in a certain accounting period accounting statement.

    47th cash flow statement refers to reflect the enterprise in a certain accounting period cash and cash equivalents inflows and outflows of its financial statements.

    48th article listed in the notes to the accounting statements further description of the project, and not available at any of the reports listed in the description of the project.

    The 11th chapter by-laws

    49th article of the guidelines by the Ministry of finance is responsible for the interpretation. 50th article of the guidelines come into force on January 1, 2007.