WHAT ARE THE MAIN DIFFERENCES BETWEEN PRC GAAP, IFRS AND US GAAP?
Chinese accounting standards vs USgaap
PRC GAAP（New Accounting Standard for Enterprises issued by Ministry of Finance of P.R.C on Feb.15, 2006）IAS/IFRSUS GAAP
InventoryUse of LIFO to calculate inventory delivery cost is prohibited.
Inventory provisions confirmed in earlier stage can be reversed back when the price rises in the later stage.
–Use of LIFO permitted. Reversal of write-down is prohibited.
Long-term investments in equity securitiesWrite-down recognised in income statement.
Investment in branches is accounted by cost method; investment in affiliated companies or joint ventures is accounted by equity method
It is not specified on the operation / assets in joint control.
The parties of joint ventures can only adopt equity method for the investment in joint ventures in consolidatedstatements
Measured at fair value with value changes recognised either (a) in income statement or (b) in equity until the investment is sold.
In the separate financial statements of parent company, cost method or IAS39 is adopted to account equity investment in subsidiaries, affiliated companies or joint ventures.
Regulation: IAS31
Parties of joint ventures can adopt proportionate consolidation method or equity method for investment in joint ventures in consolidated statements.
Same as IFRS
Long-term investments in debt securitiesIf it is categorized in “hold-to-maturity investment”, amortizedcost minuses possible Impairment measurement. If it is categorized in investment “for the sold”, it is measured by fair value and the value change is included in equity until it is sold.If classified as held to maturity, measured at amortised cost subject to impairment. If classified as available for sale, measured at fair value with value changes recognised either (a) in income statement or (b) in equity until the investment is sold.Same as IFRS
Fixed assets (exclude investment real estate)Only cost mode is allowed.Cost mode and evaluation mode are both allowed.–
Measurement of investment real estateInvestment real estate can adopt both cost mode and fair value mode to measure. Fair value mode doesn’t do accrual depreciation, but does impairment test regularly.Revaluated price or lower price in historical cost can be adopted.
Lease of the land use right can choose to be included in investment real estate, but fair value mode must be adopted to include it in investment real estate.
Same as PRC GAAP
Property, plant, and equipment received as a capital contribution from ownersMeasured at an amount agreed by all investing parties.Fair valueFair value
Profit or loss on disposal of fixed assetsPresented as a non-operating gain or loss.Included in operating profit or loss.Similar to IFRS
Are you looking for China gaap? Lee & Lee Associateswill be your choice!
在线联系供应商
Other supplier products
 |
WHAT ARE THE MAIN DIFFERENCES BETWEEN PRC GAAP, IFRS AND US GAAP? | If you do not feel comfortable for your company’s tax accruals and payments, if you are facing a tax audit by local tax authority, or if you ... |
 |
CAPITAL VERIFICATION | According to Chinese law, all Foreign Invested Enterprises (“FIEs”) should provide capital verification reports to the Administration o... |
 |
BUSINESS DEREGISTRATION | According to Chinese law, all Foreign Invested Enterprises (“FIEs”) should provide capital verificationreports to the Administration of... |
 |
WHAT ARE THE MAIN DIFFERENCES BETWEEN PRC GAAP, IFRS AND US GAAP? | If you want to showcase the potential and value of your project in order to persuade the investor or other stakeholder to invest or support it, it... |
 |
DOING BUSINESS IN ASIA PACIFIC REGION NEWSLETTER SERIES | Asia Pacific region is the most dynamic investment destination. If you want to invest in the region but don’t know how, please click the lin... |
Same products
 |
中国-俄罗斯铁路运输最快10天到达 | 卖方: 成都大洋供应链管理有限公司 | 西安-阿拉山口-莫斯科 |
 |
中国-俄罗斯铁路运输最快10天到达 | 卖方: 成都大洋供应链管理有限公司 | 西安-阿拉山口-莫斯科 |
 |
中国-俄罗斯铁路运输最快10天到达 | 卖方: 成都大洋供应链管理有限公司 | 西安-阿拉山口-莫斯科 |
 |
NITROGEN CABINET | 卖方: Kunshan Gaoqiang Industrial Equipment Co.,Ltd | Dryzone dry nitrogen box has a fast recovery time which is important for some industry demand, es... |
 |
Guitar Dry Cabinet | 卖方: Kunshan Gaoqiang Industrial Equipment Co.,Ltd | To give performers a better storage environment, Dryzone provides quality dry cabinets for instru... |
