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!
Send product request
Other supplier products
 |
BUSINESS PLAN | 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... |
 |
CAPITAL VERIFICATION | According to Chinese law, all Foreign Invested Enterprises (“FIEs”) should provide capital verificationreports to the Administration of... |
 |
CORPORATE INCOME TAX | Are you looking for tax consultant in beijing? There are lots of different treatments between the prevailing accounting system and tax system in Ch... |
 |
TAX DUE DILIGENCE | 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 ... |
 |
FINANCIAL DUE DILIGENCE | To successfully enter the China market, you may have different options, such as working with a local sales/service agent, setting up a business fro... |
Same products
 |
For iPhone 15-16 Pro Max Screen Waterproof Sticker Sealing Adhesive | Seller: Shenzhen Wikshu Technology Co. | Description Waterproof screen sealing adhesive sticker for iPhone 15/15 Plus/15 Pro/15 P... |
 |
MIJING DY-11 Phone Repair Power Cable for iPhone 8-16 iOS Android | Seller: Shenzhen Wikshu Technology Co. | Description MiJing DY-11 Mobile Phone Repair Power Cord with iOS & Android FPC for i... |
 |
YOU-IR2 Restore Easy Lightning Type-C 2-In-1 Recovery Cable for iPhone | Seller: Shenzhen Wikshu Technology Co. | Description YOUKILOON YOU-IR2 Restore-Easy Cable with Lightning Type-C dual interface fo... |
 |
BGA315 To BGA110 NAND Chip Conversion Board For iPhone iPad MacBook | Seller: Shenzhen Wikshu Technology Co. | Description BGA315 to BGA110 NAND memory chip conversion board for converting Apple iPho... |
 |
Rubber Seal | Seller: Taizhou Jiasheng Rubber & Plastic Co., Ltd. | Elevate your sealing solutions with our premium Rubber Seals! Engineered for precision and durabi... |
