Closing business Service
What is closing a business? Closing a business (also known as winding up, dissolution, or liquidation) is the formal process of permanently ending a company’s operations, settling its financial obligations,…
Chinese accounting standards refer to the set of accounting principles and regulations applied in mainland China. As of February 2010, the framework comprises a Basic Standard, 38 specific accounting standards, and a series of application guidelines. Together, they provide the foundation for financial reporting, disclosure, and regulatory compliance across various sectors.
The evolution of Chinese accounting standards is closely tied to the country’s socialist roots. In earlier decades, when all enterprises were state-owned, accounting served primarily as a tool for inventory management and state supervision, rather than for evaluating profitability or financial risk. Liabilities were often excluded from financial reports, which limited their usefulness for strategic decision-making or internal control, and made them more suitable for taxation and state planning.
As China embraced a market-oriented economy, the inadequacies of the legacy system became increasingly evident. In 2006, the Chinese government undertook a comprehensive reform of its accounting framework. This was the result of years of consultation involving the Ministry of Finance, the International Accounting Standards Board (IASB), and representatives from the Chinese business community.
The outcome was a new set of Chinese Accounting Standards (CAS) that aligns closely with the International Financial Reporting Standards (IFRS). It is estimated that the new standards have achieved 90–95% convergence with IFRS, significantly enhancing transparency, comparability, and investor confidence in Chinese financial reporting.
Prior to the reform, Chinese companies seeking to list overseas—especially in the United States—were required to prepare financial statements under three accounting frameworks: Chinese GAAP, IFRS, and U.S. GAAP. This was time-consuming and costly.
However, since 2008, the U.S. Securities and Exchange Commission (SEC) has allowed foreign private issuers to report using IFRS alone. This shift not only simplified the reporting process but also strengthened China’s integration into global capital markets and reduced barriers for Chinese firms expanding internationally.
As China continues aligning with global business standards, having the right partner is critical for success. Tannet Group Limited, now in its sixth five-year development phase, has been a trusted provider of cross-border business solutions for decades. The company is also actively planning its next strategic phases to further expand its international service scope.
Tannet offers end-to-end support in company registration, accounting and taxation, compliance, legal consulting, and international expansion, tailored to both local and foreign investors.
Whether you’re entering the Chinese market or expanding globally from China, Tannet is your reliable partner for long-term success.
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Tannet Group Limited is in its sixth five-year development plan stage, and setting the upcoming two five-year plans. Tannet has been always devoted to providing with business solutions for investors all across the world. Should you have further inquiry, pls feel free to contact Tannet at 86-755-82143181, email to anitayao@citilinkia.com, visit our website https://tannet-group.net/.