China Issues New Accountant Rules for Companies

China's Ministry of Finance issues a new set of rules on accountancy of non-monetary transactions for enterprises this week.

The new rules, which will take effect from January 1 of next year, are designed to regulate the accounting of and release of information about non-monetary transactions of enterprises.

A finance ministry official in charge of accountant rules said this is the first set of accountant rules that the ministry promulgated this year.

The new rules are adopted to cope with changes in enterprise management and the development of securities market, he noted, adding that the application of the rules will, to some extent, prevent enterprises from using non-monetary transactions as means to manipulate profits.
Meanwhile, he added, the new rules filled into a blank in China 's accountant regulations.