Senior Official Calls for Implementation of New Accountant Law

New Law Promotes Accounting Practices

Vice Premier Li Lanqing called for strict implementation of the Accounting Law, which will be put into effect on July 1.

Li made the speech during a national telephone conference Wednesday, stressing the law is conducive to standardizing economic conduct, optimizing resource distribution as well as strengthening the state macro-control.

As the highest legal regulation on accounting in the country, the Accounting Law will also help strengthen the country's supervision system and fight corruption, he said.

Analysts said that the new law is expected to help reduce widespread illicit practices in keeping accounts, which have posed serious threats to the credibility of economic figures and facilitated tax evasions.

Financial departments should enhance management on accounting activities according to the new law, said the vice premier.

Financial departments should play the role of supervision and urge enterprises to report their true financial status on a timely basis to ensure the reliability of accounting statistics.

A unified national accounting system will also be established according to worldwide routines to improve the quality of accounting activities.

Without the permission of the central government, financial departments cannot establish or announce their own financial and accounting policies.

Meanwhile, the quality of accountants should also be improved, he said.

People without accountant credentials cannot work as accountants.

Accountants who violate laws and regulations should be deprived of their certificates.

Financial departments at all levels should urge registered accountants to improve their professional competence, reorganize agencies on economic appraisal, and establish general-accountant system according to the law.

The vice premier also asked other governmental departments to co-operate in carrying out the new law.

Auditing departments should strengthen the supervision over income and expenses of governments at all levels, state-owned financial organizations and enterprises, he stressed.

Banks at all levels are required to strengthen check-ups on opening and using bank accounts, while taxation departments should strengthen the inspection of the usage of receipts and the account status of taxpayers.

At the end of this year, an inspection will be made on the implementation of the Accounting Law, the vice premier added.

Any violation discovered will be punished according to the law.

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