The China Accounting Standards Committee (the “Committee”) under the Ministry of Finance (“MOF”) is the advisory body for setting Chinese accounting standards. The aim of the Committee is to provide advices and recommendations on setting and improving Chinese accounting standards. Since its establishment in October 1998, the Committee has been dedicated to provide support on the development of Chinese accounting standards. It has organized a number of national and international seminars on accounting standards and actively participated in the convergence of accounting standards internationally and worked closely with international accounting profession. It has played an active role and provided a lot of constructive advices on setting and improving Chinese accounting standards.  | | | In March 2003, the Committee has re-organised successfully. The second China Accounting Standards Committee under MOF comprises of 20 members. The members are engaged by the MOF and are selected from relevant government agencies, the academic circle, accounting professional organizations, intermediaries and the business, and they are highly representative. Lou Jiwei, Vice- Minister and Deputy Secretary of the CPC Committee of MOF is appointed as Chairman of the Committee. Wang Jun, Vice- Minister is appointed as Secretary-General of the Committee. An administrative office (the “Office”) is set up under the Committee to carry out the daily administrative work. The Office is based in the Accounting Regulatory Department of MOF. The Director-General of the Accounting Regulatory Department also serves as the director of the Office. To better assume the duty of the Committee, three professional committees are set up after the re-organisation: Professional Committee on Accounting Theory, Professional Committee on Accounting standards for Business enterprises, and Professional Committee on Accounting for Government and Non-profit Organisations. Subsequently, the Ministry of Finance issued Procedures for Setting Accounting Standards, CASC promulgated the Work Outline of China Accounting Standards Committee. Following the above reforms, the work of the Committee becomes more structured and systematic. | | | In the 21st Century, globalization of the economy and the capital market is inevitable in the development of the world economy. Accounting information, as commercial language that is internationally accepted, is playing increasingly important role. Control over accounting matters and the prevention of accounting risks have become a critical issue of economic development. The China Accounting Standards Committee will continue to perform its consulting role in the process of setting accounting standards, to assist the accounting standards setting body in establishing and improving the Chinese accounting standards, to participate actively in the international convergence process and contribute to the socialist market economy with Chinese Characteristics. | | | | |
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