Which accounting standard does China follow?

Asked by: Gloria Botsford  |  Last update: June 26, 2026
Score: 4.3/5 (21 votes)

China's accounting standards, known as Chinese Accounting Standards (CAS), are designed for businesses in Mainland China, primarily the Accounting Standards for Business Enterprises (ASBEs) for larger entities, with significant convergence towards IFRS but notable differences, such as mandatory historical cost for fixed assets and specific rules for government grants, requiring careful translation for global reporting. Recent updates (2021 onwards) introduced IFRS-aligned models for revenue (CAS 14), leases (CAS 21), and financial instruments, aiming for greater transparency.

What accounting standard is used in China?

The CAS are the rules of accounting that are applied in mainland China. These rules are unique because they started in the Chinese socialist era when the country was the primary owner of most if not all industries.

Do Chinese companies use GAAP?

When preparing annual financial reports, all FIEs are required to follow the Chinese Generally Accepted Accounting Principles (GAAP), also known as Chinese Accounting Standards (CAS).

Is IFRS applicable in China?

No, the use of IFRS Standards is not permitted for domestic companies. All Chinese companies whose securities trade in a public market in China are required to use Chinese Accounting Standards for Business Enterprises (ASBEs) for financial reporting within mainland China.

What is CA called in China?

If you are based in China you can qualify as an ICAEW Chartered Accountant as a university graduate. Many students start their journey by studying the ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB), before going on to complete the ACA qualification.

China’s Major Changes in Accounting Standards [CAS21] (Daxue Talks 130)

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Who is the no. 1 richest CA in India?

Richest Chartered Accountants in India. 1. Kumar Mangalam Birla (Net Worth: $19 billion) 2.

Which is harder, ACA or ACCA?

ACA is typically for a number of the larger practices and is a very technical qualification. Some say this is the hardest qualification out of CIMA, ACA, and ACCA.

Is the Big 4 banned in China?

UK accounting giant PwC faces six-month China ban

The Big Four accountancy firm is also being fined more than $62m (£47m) after Chinese authorities said it had helped cover up fraud at Evergrande. The real estate firm collapsed in January under a mountain of debt.

What is the difference between Chinese GAAP and IFRS?

The most notable difference between Chinese GAAP and IFRS is that in line with the Chinese Accounting Standards companies can only use the historical cost method to valuate fixed- and intangible assets, whereas IFRS allows the use of both the historical cost method and the possibility of re-evaluating the asset(s).

Which accounting software is used in China?

Yonyou is designed with Chinese accounting standards and practices in mind, facilitating the preparation of China GAAP compliant tax reports. Unlike Kingdee which is catered to smaller businesses, Yonyou is more suitable for medium to large size businesses. Their software has more complex enterprise-level functions.

Is CPA recognized in China?

In accordance with the Law of the People's Republic China on Certified Public Accountants, the Chinese Institute of Certified Public Accountants (CICPA) is authorized to establish professional standards and rules for CPAs which are then approved by the Ministry of Finance.

What is the Indian version of GAAP?

Indian GAAP is mostly rules-based. It depends heavily on specific government laws like the Companies Act, 2013, and guidelines by the ICAI (Institute of Chartered Accountants of India). Indian GAAP provides particular instructions that companies must follow.

Do Chinese companies follow GAAP?

The Chinese Generally Accepted Accounting Principles (China-GAAP) are similar to the International Financial Reporting Standards (IFRS), but differ from the American accounting system (US-GAAP). Most foreign companies are unaware of these differences, and are, therefore, running the risk of non-compliance.

Does China recognise ACCA?

ACCA now has around 29,000 members and over 103,800 future members in China, with representative offices and contact points in 11 cities including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Shenyang, Qingdao, Wuhan, Changsha, Hong Kong SAR and Macau SAR.

Does Hong Kong use IFRS or GAAP?

The accounting standards of Hong Kong are known as the Hong Kong Financial Reporting Standards (HKFRS), which have been fully converged with the International Financial Reporting Standards (IFRS).

Why was IAS replaced by IFRS?

IFRS 9 replaced IAS 39 in January 2018 because it was too complex, inconsistent, and impractical in a modern financial world. Accountants, regulators, and financial institutions often call IAS 39 one of the most confusing standards ever written.

Is there a Deloitte in China?

We are a globally connected firm with deep roots locally, owned by our partners in China. With over 20,000 professionals across 31 Chinese cities, we provide our clients with a one-stop shop offering world-leading audit, tax and consulting services.

Is it true that 90% of people in China own their own homes?

Yes, roughly 90% or more of households in China own their homes, making it one of the highest homeownership rates globally, driven by cultural emphasis on property as stability, significant housing reforms since the late 1990s, and high household savings, though this also leads to high prices and affordability issues for younger generations. While most own property, they hold long-term land-use rights (often 70 years), as the land itself remains state-owned. 

Which country's CPA is easy?

You have three attempts at the module exams and the CFE, so, if you are unsuccessful three times, you may consider attempting the CPA US course. Despite the lower pass rates, the US CPA exams are somewhat easier due to the objective format of the questions and extended exam windows.