2026年中国会计与审计简要指南（第四版）

Guide to Accounting Preface The start of a new year is a hectic time for foreign companies in China. To meet the variouscompliance deadlines scattered throughout the year, they need to begin the long andcomplicated process of financial reporting months in advance. Failure to comply will risk them SABRINA ZHANGPartnerDezan Shira & Associates With businesses operating in a growing volatile, unexpected, complex, and ambiguous(VUCA) world, financial health and compliance has become more important than ever. Moreattention should thus be given to the audit and compliance procedures to reveal unexpected China Briefing’sGuide to Accounting and Audit in China 2026 (4th Edition), produced incollaboration with the audit experts at Dezan Shira & Associates, aims to walk foreignbusinesses through the annual audit and compliance process from start to finish, in additionto introducing China’s accounting framework in a comparative context. We hope this guide If you and your company want to learn more about how to get ready for the annual auditand compliance, you are welcome to get in touch with Dezan Shira & Associates. For more What’s New in This Guide In this year’s updated version of theGuide to Accounting and Audit in China, there are notable •Accounting standards adopted in China:We have completely restructured thissection to make it clearer and more practical. The revised content now provides asystematic overview of China’s accounting framework. Each standard is explained, •New changes to China’s accounting system:In 2025, China introduced severalsignificant updates to its accounting system. These include the release of InterpretationNo. 18 and the exposure draft of Interpretation No. 19 under theAccountingStandards for Business Enterprises. We also cover the four new implementation •Special purpose reviews:This edition expands the discussion on complianceaudits for personal information protection, reflecting the newMeasures for theAdministration of Compliance Audits on Personal Information ProtectioneffectiveMay 1, 2025. We also emphasize the growing importance of tax health checks for •Annual compliance of NGOs:We have added a dedicated section on annual compliancerequirements for foreign NGOs operating in China. This includes a step-by-step timeline About Dezan Shira & Associates Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providinglegal, tax and operational advisory to international corporate investors. Operational throughoutChina, India and ASEAN, our mission is to guide foreign companies through Asia’s complexregulatory environment and assist them with all aspects of establishing, maintaining and growing Our Services > Accounting> Audit and Financial Review> Business Advisory> Business Intelligence> Corporate Establishment and Governance> China Outbound> Due Diligence> Government and Economic Development> HR and Payroll> Intellectual Property> Mergers and Acquisitions> Risk Management> Tax> Technology Our Locations Table of Contents Preface03 What’s New in This Guide04 Accounting standards adopted in China10New changes made to China’s accounting system13Discrepancies between CAS and the tax laws18Differences between CAS and IFRS23 Part 2 | Annual audit in China28 Why is annual audit important?30What does the annual audit involve?32How to prepare for an effective annual audit?34Annual audit vs. internal control review39Other types of special purpose reviews45 Part 3 | Annual compliance requirements in China53 •Accounting standards adopted in China•New changes made to China’s accounting system•Discrepancies between CAS and the tax laws Foreign companies establishing a presence in China will encounter a host of considerations thatdo not exist in their home country. Of these, interpreting and understanding China’s system of SABRINA ZHANGPartner In this chapter, we’ll introduce the accounting standards adopted in China, the discrepanciesbetween the Chinese accounting standards and the tax laws, and the difference between Chinese “For foreign companiesestablishing a presencein China, interpretingand understandingChina’s system of Accounting standards China’s accounting standards, collectively referred to as Chinese Accounting Standards(CAS) or Chinese GAAP, are developed and regulated by the Ministry of Finance (MOF).Since their inception in 1992, CAS has undergone significant reforms to align with IFRS, Accounting Standards for Business ASBE form the core of China’s accounting system and are mandatory for listed companies, largeand medium-sized enterprises, and most foreign-invested enterprises (FIEs). First introduced in2006 and effective from January 1, 2007, ASBE have undergone multiple revisions to improveclarity and consistency with global standards. The current framework includes one basic standard Although ASBE are modeled closely on IFRS, they retain certain China-specific characteristics.For example, revenue recognition under ASBE