In a bid to regulate accounting changes made by listed companies and curb such abuses for profit manipulation, the Shenzhen Stock Exchange today(October 9, 2007) issued the No.7 Guidelines for Information Disclosure on Changes in Accounting Policies and Accounting Estimates, setting out different approval procedures for changes in accounting policies incurred by compulsory regulations, proprietary accounting policies, and accounting estimates.
According to the Guidelines, listed companies shall submit special audit reports to the general meeting of shareholders prior to disclosure of regular reports upon approval of the board, under any of the following circumstances:
1) The aforesaid changes might affect the net profit of over 50% in regular reports;
2) The aforesaid changes might affect the shareholder equity of over 50% in regular reports;
3) The aforesaid changes might affect profitability of the company concerned.
In addition, during the session of shareholders’ general meetings, listed companies must provide online voting channels for investors.
The highlight in the Guidelines is the adoption of the financial figures to be disclosed as a comparison base, which also indicates the bourse’s efforts to adapt to the new market supervision environment. Sources with the stock exchange said this move aimed to clamp down on malicious abuses of accounting changes without increasing the costs of compliant companies.
this paper is copied from Shenzhen Stock Exchange.
10/13/2007
China Accounting News Weekly[No. 22]2007.9.22-2007.9.30
Compliance manager shouldn’t take charge of business operation and finance
On September 7, the China Insurance Regulatory Commission (CIRC) issued the “Guide concerning on compliance management of insurance company” in order to normalize the governance organization of insurance companies and strengthen the compliance management of insurance companies.
List of central company which will be audited publicized
On September 21, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) publicized the list of central companies and arranged the audit scope and the organization of this work on its website. This audit, based on spot check, is comprised of group finance, sub-company finance and special finance.
The implement regulations of income tax expected to be come out
in October There are many advice and disagreement on the rules. The tax department also make out many technical advices. An official from the Ministry of Finance said that they would try their best to complete the regulation in October.
Famous professor Yu, Xuying passed away
On September 23, Professor Yu Xuying, respectable scholar and educator, passed away. He was graduated from Xiamen University in 1945. Pro Yu was member of editor policy commission of the international journal of accounting. He was one of the four PH.D supervisors in China, and tutor of tens of accounting doctors, such as Sun Baohou.
October 9, 2007 15：37PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007.
On September 7, the China Insurance Regulatory Commission (CIRC) issued the “Guide concerning on compliance management of insurance company” in order to normalize the governance organization of insurance companies and strengthen the compliance management of insurance companies.
List of central company which will be audited publicized
On September 21, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) publicized the list of central companies and arranged the audit scope and the organization of this work on its website. This audit, based on spot check, is comprised of group finance, sub-company finance and special finance.
The implement regulations of income tax expected to be come out
in October There are many advice and disagreement on the rules. The tax department also make out many technical advices. An official from the Ministry of Finance said that they would try their best to complete the regulation in October.
Famous professor Yu, Xuying passed away
On September 23, Professor Yu Xuying, respectable scholar and educator, passed away. He was graduated from Xiamen University in 1945. Pro Yu was member of editor policy commission of the international journal of accounting. He was one of the four PH.D supervisors in China, and tutor of tens of accounting doctors, such as Sun Baohou.
October 9, 2007 15：37PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007.
China Accounting News Weekly[No. 21]2007.9.8-2007.9.21
The double-audit to B-stock abolished
On September12, the China Securities Regulatory Commission (CSRC) declared that domestic listing of foreign-oriented stocks wouldn’t have to carry on foreign auditing while audited by domestic accounting firms with securities and features qualification.
The Law of Financial Leasing closing to be finished
Liu Mingkang, the chairman of the China Banking Regulatory Commission (CBRC), said that the Law was nearly been completed and several new financial leasing companies were to be approved. At the beginning of this year, the CBRC issued the revised Administration Rules on financial leasing company and allowed commercial banks to set up financial leasing companies.
The contribution standards of guarantee fund won’t be changedOn September 14, the China Insurance Regulatory Commission (CIRC) declared that the range and standards for contributing supervision fee and guarantee fund won’t be changed, following the new accounting standards.
The CSRC standardizing the capital market
The CSRC issued 6 rules concerning on capital market, including: the administration rules on important asset reorganization of listed company ( consultative draft), circular on standardizing the information disclosure of listed company and behavior of stakeholder, the working regulation of M&A and reorganization supervision commission of the CSRC, the implementation rules on non-public offering, the No. 25 information disclosure content and format standards of listed company: the non-public offering plan and the offering report of listed company
Proofreader : meyoung
September 30, 2007 14：05PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007.
On September12, the China Securities Regulatory Commission (CSRC) declared that domestic listing of foreign-oriented stocks wouldn’t have to carry on foreign auditing while audited by domestic accounting firms with securities and features qualification.
The Law of Financial Leasing closing to be finished
Liu Mingkang, the chairman of the China Banking Regulatory Commission (CBRC), said that the Law was nearly been completed and several new financial leasing companies were to be approved. At the beginning of this year, the CBRC issued the revised Administration Rules on financial leasing company and allowed commercial banks to set up financial leasing companies.
The contribution standards of guarantee fund won’t be changedOn September 14, the China Insurance Regulatory Commission (CIRC) declared that the range and standards for contributing supervision fee and guarantee fund won’t be changed, following the new accounting standards.
The CSRC standardizing the capital market
The CSRC issued 6 rules concerning on capital market, including: the administration rules on important asset reorganization of listed company ( consultative draft), circular on standardizing the information disclosure of listed company and behavior of stakeholder, the working regulation of M&A and reorganization supervision commission of the CSRC, the implementation rules on non-public offering, the No. 25 information disclosure content and format standards of listed company: the non-public offering plan and the offering report of listed company
Proofreader : meyoung
September 30, 2007 14：05PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007.
China Accounting News Weekly[No. 20]2007.9.1-2007.9.7
CICPA signed with CPA Australia
On September 5, the CICPA signed a letter of intent with the CPA Australia in Beijing. Zhongli Liu (chairman of CICPA), Yugui Chen (secretary-general of CICPA), Paul Meiklejohn (president of CPA Australia), Paul Wappett (CPA Australia's General Manager - Development) attended the ceremony.
8 kinds of behaviors defined as market manipulation
According to well-informed resource, the trial regulations implemented by the China Securities Regulatory Commission (CSRC) defined 8 kinds of market manipulation. They are continuous trade, stipulated trade, self trade, deluding trade, lead-up trade, false declaration, special price trade and special time trade.
Special rules concerning the information disclosure of listed insurance companies
On September 3, the CSRC worked out particular regulations on this issue. It required listed insurance companies to disclose following information in periodical reports: premium income, investment assets, outstanding loss reserve (non-life insurance), undue liability reserve (non-life insurance), settlement payouts, growth rate of premium income, investment return ratio, combined cost ratio (non-life insurance), combined payout ratio (non-life insurance) and surrender rate of life insurance.
Proofreader : littlerui
September 12, 2007 10：57PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
On September 5, the CICPA signed a letter of intent with the CPA Australia in Beijing. Zhongli Liu (chairman of CICPA), Yugui Chen (secretary-general of CICPA), Paul Meiklejohn (president of CPA Australia), Paul Wappett (CPA Australia's General Manager - Development) attended the ceremony.
8 kinds of behaviors defined as market manipulation
According to well-informed resource, the trial regulations implemented by the China Securities Regulatory Commission (CSRC) defined 8 kinds of market manipulation. They are continuous trade, stipulated trade, self trade, deluding trade, lead-up trade, false declaration, special price trade and special time trade.
Special rules concerning the information disclosure of listed insurance companies
On September 3, the CSRC worked out particular regulations on this issue. It required listed insurance companies to disclose following information in periodical reports: premium income, investment assets, outstanding loss reserve (non-life insurance), undue liability reserve (non-life insurance), settlement payouts, growth rate of premium income, investment return ratio, combined cost ratio (non-life insurance), combined payout ratio (non-life insurance) and surrender rate of life insurance.
Proofreader : littlerui
September 12, 2007 10：57PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
China Accounting News Weekly[No. 19]2007.8.25-2007.8.31
Anti-monopoly law adopted
the Anti-Monopoly Law passed by the Standing Committee of the National People's Congress (NPC) on August 30, will come into effect on Aug. 1, 2008.
"As well as anti-monopoly checks stipulated by this law, foreign mergers with acquisitions of domestic companies or foreign capital investing in domestic companies' operations in other forms should go through national security checks according to relevant laws and regulations if the cases are related to the issue," it reads.
Regulations on credit appraisal issued
On August 24, the “Regulations” passed by the China Securities Regulatory Commission (CSRC) on August 24, will take effect on September 1.
the calculate standards of net capital for securities companies amended
On August 27, the CSRC issued the “Circular”. The deduction rates of stock investment and “other equity investment” when calculate net capital are all increased.
September 12, 2007 10：53AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
the Anti-Monopoly Law passed by the Standing Committee of the National People's Congress (NPC) on August 30, will come into effect on Aug. 1, 2008.
"As well as anti-monopoly checks stipulated by this law, foreign mergers with acquisitions of domestic companies or foreign capital investing in domestic companies' operations in other forms should go through national security checks according to relevant laws and regulations if the cases are related to the issue," it reads.
Regulations on credit appraisal issued
On August 24, the “Regulations” passed by the China Securities Regulatory Commission (CSRC) on August 24, will take effect on September 1.
the calculate standards of net capital for securities companies amended
On August 27, the CSRC issued the “Circular”. The deduction rates of stock investment and “other equity investment” when calculate net capital are all increased.
September 12, 2007 10：53AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
Macau nets US$2b in gaming taxes
THE government of the Macau Special Administrative Region has collected 16.01 billion patacas (US$2.01 billion) in direct gaming taxes in the first seven months of the year, a remarkable year-on-year rise of 48.1 percent.
The statistics issued yesterday by the Finance Services Bureau showed that the gaming taxes accounted for 73 percent of the government total revenue in the period. Macau's 26 casinos pay 35 percent of their gross receipts as direct tax to the government. The region, with a population of 580,000, has a 150-year history of the gaming industry and is the only part of China where casino gaming is legitimate.
Resource:Shanghai Daily
Released on August 22.
The statistics issued yesterday by the Finance Services Bureau showed that the gaming taxes accounted for 73 percent of the government total revenue in the period. Macau's 26 casinos pay 35 percent of their gross receipts as direct tax to the government. The region, with a population of 580,000, has a 150-year history of the gaming industry and is the only part of China where casino gaming is legitimate.
Resource:Shanghai Daily
Released on August 22.
China Accounting News Weekly[No. 18]2007.8.18-2007.8.24
English test appears in CPA examination
The CPA examination will be hold from Sep 14 to 16. On August 22, the Ministry of Finance decided to add English test in following subjects: accounting and auditing.
118 real estate appraisal agencies got “A” rating
The China Real Estate Valuers Association (CREVA), instructed by the Ministry of Land and Resources, took charge of the activity to advance the credit environment in the industry.
Rules on company registration issued
On July 25, The State Administration of Industry and Commerce issued the “Regulation for improve and strengthen the management of company registration”.
August 27, 2007 11：31AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
The CPA examination will be hold from Sep 14 to 16. On August 22, the Ministry of Finance decided to add English test in following subjects: accounting and auditing.
118 real estate appraisal agencies got “A” rating
The China Real Estate Valuers Association (CREVA), instructed by the Ministry of Land and Resources, took charge of the activity to advance the credit environment in the industry.
Rules on company registration issued
On July 25, The State Administration of Industry and Commerce issued the “Regulation for improve and strengthen the management of company registration”.
August 27, 2007 11：31AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
China Accounting News Weekly[No. 17]2007.8.4-2007.8.17
The deadline for European examinees to register will be postponed
The CICPA will prolong the deadline from July 31 to August 31, 2007. More information can be learnt on http://www.cicpa.org.cn/
The CICPA set up information platform to promote the development of accounting firms abroad
The main aim of the platform is to implement the plan concerning on make the accounting firms bigger and stronger, to
promote the development of accounting firms abroad, to provide relative information for firms in time and exactly.
The first official talk concerning on the convergence of accounting standards between China and U.S.
On August 16, Liu yuting, the Director-General of Accounting Regulatory Department of the Ministry of Finance, said that the convergence had begun and it would be more convenient for Chinese companies to list in U.S. after the complete of convergence.
Inside dealing will be punished in three ways
On August 17, the Shanghai Stock Exchange suggested that they would punish the inside dealing and market manipulation by administrative sanction, penal punishment and civil compensate.
Two standards concerning on information disclosure of debenture were issued
On August 15, the China Securities Regulatory Commission issued two standards. The standard regulates the qualification, guarantee, repay debt and so on.
August 27, 2007 11：31AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
The CICPA will prolong the deadline from July 31 to August 31, 2007. More information can be learnt on http://www.cicpa.org.cn/
The CICPA set up information platform to promote the development of accounting firms abroad
The main aim of the platform is to implement the plan concerning on make the accounting firms bigger and stronger, to
promote the development of accounting firms abroad, to provide relative information for firms in time and exactly.
The first official talk concerning on the convergence of accounting standards between China and U.S.
On August 16, Liu yuting, the Director-General of Accounting Regulatory Department of the Ministry of Finance, said that the convergence had begun and it would be more convenient for Chinese companies to list in U.S. after the complete of convergence.
Inside dealing will be punished in three ways
On August 17, the Shanghai Stock Exchange suggested that they would punish the inside dealing and market manipulation by administrative sanction, penal punishment and civil compensate.
Two standards concerning on information disclosure of debenture were issued
On August 15, the China Securities Regulatory Commission issued two standards. The standard regulates the qualification, guarantee, repay debt and so on.
August 27, 2007 11：31AM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
China Accounting News Weekly[No. 16]2007.7.28-2007.8.3
State Administration of Taxation establish the department of audit
On July 31, approved by the State Commission Office for Public Sector Reform, the State Administration of Taxation established the department of audit which will take in charge of internal audit affairs.
The annual examination of the quality of practice in asset appraisal industry began
The China Appraisal society and local associations began to carry out the examination to special group members and normal ones which were qualified to carry out business in securities. More than 20% of group members will be inspected.
The CSRC punished 52 senior managements
On July 25, the China Securities Regulatory Commission(CSRC) punished 9 listed companies, 2 accounting firms and one securities company. Fifty-two senor managements , 4 CPAs and 10 principals of securities companies were warned and had to pay penalty in different amounts. These 11 companies had to pay ￥5,240,000 yuan totally.
Proofreader : meyoung
August 8, 2007 16：31PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
On July 31, approved by the State Commission Office for Public Sector Reform, the State Administration of Taxation established the department of audit which will take in charge of internal audit affairs.
The annual examination of the quality of practice in asset appraisal industry began
The China Appraisal society and local associations began to carry out the examination to special group members and normal ones which were qualified to carry out business in securities. More than 20% of group members will be inspected.
The CSRC punished 52 senior managements
On July 25, the China Securities Regulatory Commission(CSRC) punished 9 listed companies, 2 accounting firms and one securities company. Fifty-two senor managements , 4 CPAs and 10 principals of securities companies were warned and had to pay penalty in different amounts. These 11 companies had to pay ￥5,240,000 yuan totally.
Proofreader : meyoung
August 8, 2007 16：31PM. Released by http://www.esnai.com/
Note:
“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007
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