What are China Accounting Standards?
China Accounting Standards (CAS), also known as Chinese Generally Accepted Accounting Principles (Chinese GAAP), are the financial reporting and accounting regulations that companies in China must follow. CAS is based on International Financial Reporting Standards (IFRS) but includes specific adjustments to align with China’s financial and regulatory environment.
Relevance in China
CAS compliance is mandatory for all businesses in China, including domestic and foreign-invested enterprises (FIEs). The standards regulate financial reporting, tax filing, and auditing processes. Foreign companies operating in China need to ensure their financial statements comply with CAS, even if they use different accounting systems in other countries.
How to Comply with CAS
- Maintain financial records according to CAS principles.
- Engage local accountants or accounting firms familiar with CAS.
- Conduct annual audits to ensure compliance.
- Convert foreign financial statements into CAS-compliant reports if needed.