US GAAP vs. PRC GAAP
1. Overview of US GAAP
Components of US GAAP
- Financial Accounting Standards Board / Financial Accounting Standards
- Accounting Research Bulletin
- Accounting Principles Board
- Emerging Issues Task Force
- Statements of Position from AICPA (American Institute of Certified Public Accountants)
- SEC (Securities and Exchange Commission) rules
Hierarchy of pronouncements under US GAAP
- FASB, APB & ARB
- FASB Technical Bulletin, AICPA Statements of Position, Audit and Accounting Guides, Practice Bulletins
- SEC Practice and Emerging Issues Task Force
- Others
Likely future developments
2. PRC Accounting Rules and Systems
PRC accounting regulatory system
- Accounting Law
- Regulations on Financial Reporting of Enterprises
- Accounting Standards for Business Enterprise
- Accounting system for Business Enterprise
Specific Accounting Standards
- Brief introduction on specific accounting standards
- Application scope and adoption date
- Latest supplementary regulations and Q&A enacted by the Ministry of Finance
3. PRC GAAP Vs. US GAAP
General Comparison
- Accounting period
- Accounting books and records
- Bad debt provision
- Inventory
- ……
Deferred Tax
- China:
choose between Tax Payable Method and Tax Impact Accounting Method (including deferred method and liability method)
- US:
Determine the temporary difference, recognise the deferred tax assets and liabilities …..US: Determine the temporary difference, recognise the deferred tax assets and l ...