Rules Promulgated on Financial Service Accounting

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Last updated at: (Beijing Time) Tuesday, December 18, 2001

Rules Promulgated on Financial Service Accounting

The Ministry of Finance has recently released the rules on the accounting system of financial services in a bid to regulate their accounting procedures and the way they disseminate information. The rules will be implemented on January 1 next year.

Rules in Step with International Practices

According to the ministry, the rules, pinpointing accounting policies relevant to the current financial business, are fully in step with common international practices.

The ministry expects that the rules will help further rectify the accounting practices of financial services, improve the asset quality of the financial industry, and enhance the transparency ofaccounting information, so as to prevent risks for the interests of the investors and meet requirements of the Basel Agreement.

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Li Yong, assistant minister of Finance said that the ministry is conducting a nationwide inspection on the firms' implementation of accounting laws.

He said that accounting forms and their accountants who are found providing false financial figures will be severely punished.

Chinese Premier Stresses Accounting Ethics

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He pointed out that training qualified accounting personnel with decent professional ethics is crucial for the country's market-oriented economic development and the modernization drive.

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In a bid to prod Chinese listed companies to increase the transparency of information, the Ministry of Finance released three detailed rules of accounting on February 08, 2001.

By stipulating requirements on bookkeeping of intangible property, cost of lending and leased properties of enterprises, the new rules will help improve the accuracy of financial information that the listed companies released. The aim of the move is to ensure the healthy development of the country's securities market.

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