China Introduces New Accounting Standards

China has released the accounting standards on contingency on May 17.

These new rules are designed to facilitate the implementation of the newly-amended Accounting Law. The new accounting standards on contingency will take effect as of July 1.

According to the new standards, contingency refers to economic activities with unpredictable outcomes, including on-going litigation, debt mortgage, guarantee of product quality, and bill discount and endorsement.

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