Official legal text published by the National People’s Congress of the People’s Republic of China .
Chapter I General Provisions
Article 1
This Law is enacted for the purpose of strengthening accounting work, ensuring the authenticity and integrity of accounting information, safeguarding the economic order, and promoting the sound development of the socialist market economy.
Article 2
State organs, social organizations, enterprises, institutions and other organizations (hereinafter referred to as “units”) shall conduct accounting work and implement accounting supervision in accordance with this Law.
Article 3
Accounting work shall include the following contents:
(1) examining the original accounting documents;
(2) filling in accounting vouchers;
(3) registering accounting books;
(4) preparing financial accounting reports; and
(5) other accounting matters.
Article 4
Units shall ensure that accounting information is true, complete, and accurate, and shall not provide false or misleading accounting information.
Article 5
The State practices a unified accounting system.
The department of finance under the State Council shall formulate and promulgate the unified national accounting system.
Article 6
The persons in charge of units shall be responsible for the authenticity and completeness of the accounting work and accounting information of their units.
Article 7
Accounting work shall be conducted in the Chinese language.
In ethnic autonomous areas, accounting records may also be written in the language commonly used locally.
Article 8
The department of finance under the State Council shall supervise and guide accounting work nationwide.
The departments of finance of local people’s governments at or above the county level shall supervise and guide accounting work within their respective administrative regions.
Article 9
Units shall establish and improve their internal accounting management systems, strengthen internal accounting control, and prevent accounting irregularities.
Chapter II Accounting Practices
Article 10
Units shall conduct accounting in accordance with the unified national accounting system, and shall not privately establish accounting books that are inconsistent with the law.
Article 11
Accounting records shall be made on the basis of original accounting documents.
Original accounting documents shall be true and lawful.
Where original accounting documents are found to be false or unlawful, they shall not be used as the basis for accounting records, and shall be returned to the provider.
Article 12
Accounting vouchers shall be prepared on the basis of audited original accounting documents and in accordance with the relevant provisions.
Article 13
Accounting books shall be registered on the basis of accounting vouchers.
Accounting books shall include general ledgers, subsidiary ledgers, journals, and other auxiliary accounting books.
Article 14
Accounting records shall be recorded in accordance with the prescribed accounting procedures, and shall be complete and accurate.
Accounting books shall not be altered, forged, or destroyed.
Article 15
Units shall prepare financial accounting reports in accordance with the unified national accounting system.
Article 16
Financial accounting reports shall reflect the financial position, operating results, and cash flows of the units, and shall be true, complete, and accurate.
Article 17
Financial accounting reports shall be reviewed and signed by the persons in charge of the units, the chief accountants, and the accounting personnel in charge.
Article 18
Accounting records, accounting books, financial accounting reports, and other accounting materials shall be properly kept.
Article 19
The retention period for accounting archives shall be determined in accordance with the relevant provisions of the State.
Chapter III Accounting Supervision
Article 20
Units shall establish and improve their internal accounting supervision systems, and ensure that accounting activities are conducted in accordance with the law.
Article 21
Internal accounting supervision shall include supervision over:
(1) the authenticity and completeness of accounting documents;
(2) the compliance of accounting activities with laws, administrative regulations, and the unified national accounting system; and
(3) the implementation of accounting responsibilities by accounting personnel.
Article 22
Units shall accept supervision by departments of finance, auditing institutions, and other relevant departments in accordance with the law.
Article 23
Accounting personnel shall have the right to refuse to handle accounting matters that violate laws, administrative regulations, or the unified national accounting system.
Accounting personnel shall have the right to report such violations.
Article 24
Units shall not retaliate against accounting personnel who lawfully perform their duties or who refuse to carry out illegal accounting practices.
Article 25
Where accounting personnel find serious violations of accounting laws and regulations, they shall report such violations to the relevant authorities in a timely manner.
Accounting supervision is administered by the Ministry of Finance of the People’s Republic of China in accordance with this Law.
Chapter IV Accounting Institutions and Accounting Personnel
Article 26
Units shall, in accordance with the needs of accounting work, establish accounting institutions or assign accounting personnel.
Article 27
Units that do not have the conditions to establish accounting institutions or assign accounting personnel may entrust accounting work to qualified intermediary agencies in accordance with the law.
Article 28
Persons in charge of units shall not instruct, coerce, or connive with accounting personnel to fabricate or alter accounting documents, accounting vouchers, accounting books, or financial accounting reports.
Article 29
Accounting personnel shall possess the necessary professional knowledge and business competence to engage in accounting work.
Article 30
Accounting personnel shall abide by professional ethics, observe discipline, and perform accounting duties in accordance with the law.
Article 31
Accounting personnel shall have the right to refuse to handle accounting matters that violate laws, administrative regulations, or the unified national accounting system.
Article 32
Units shall ensure that accounting personnel lawfully perform their duties, and shall not retaliate against accounting personnel who refuse to carry out illegal acts or who report illegal accounting practices.
Article 33
The appointment and removal of accounting personnel in charge shall comply with relevant provisions of the State.
Chapter V Legal Liability
See also: Law of the People’s Republic of China on the Administration of Tax Collection .
Article 34
Where a unit violates the provisions of this Law by failing to set up accounting books in accordance with the law, privately setting up accounting books, or refusing to set up accounting books, the departments of finance shall order it to make corrections within a prescribed time limit and may impose a fine.
Article 35
Where a unit violates the provisions of this Law by fabricating or altering accounting documents, accounting vouchers, accounting books, or financial accounting reports, the departments of finance shall order it to make corrections, recover the illegal gains, and may impose a fine.
Article 36
Where a unit violates the provisions of this Law by providing false accounting information, the persons in charge of the unit and other directly responsible persons shall be given administrative sanctions in accordance with the law.
Article 37
Where accounting personnel violate the provisions of this Law, the departments of finance shall order corrections and may impose administrative sanctions.
Article 38
Where a person in charge of a unit instructs, coerces, or connives with accounting personnel to fabricate or alter accounting documents, accounting vouchers, accounting books, or financial accounting reports, criminal liability shall be investigated in accordance with the law if the circumstances constitute a crime.
Article 39
Where a unit retaliates against accounting personnel who lawfully perform their duties or who refuse to carry out illegal accounting practices, the departments of finance shall order corrections and may impose administrative sanctions.
Chapter VI Supplementary Provisions
Article 40
The interpretation of this Law shall be vested in the department of finance under the State Council.
Article 41
This Law shall enter into force on July 1, 2000.
Disclaimer: The regulation of company registration in China is translated by FDIChina for reference only. There may be different interpretations of the Chinese version.