China Accounting Standards Committee
The China Accounting Standards Committee (CASC) is an independent body that is responsible for setting and maintaining accounting standards in China. Established in 1995, the CASC is an independent organisation that is responsible for formulating, revising and fine-tuning accounting standards and procedures in accordance with international standards and Chinese laws and regulations.
The CASC is affiliated with the Ministry of Finance of the Peoples Republic of China and is composed of representatives from various accounting-related organisations, such as the China Banking Regulatory Commission (CBRC) and the China Securities Regulatory Commission (CSRC). The CASC is also supported by technical experts from the Chinese Academy of Sciences and the China International Accounting Institute (CPIAI).
The CASC works to ensure that Chinas accounting principles and practices are internationally accepted and uniform throughout China. CASC works in consultation with domestic and foreign professional organisations and with input from the Ministry of Finance and the State Council to issue and modify accounting standards and procedures relating to the regulation of corporate financial accounting and reporting, the audit of companies, and the preparation and oversight of financial statements.
The CASC seeks to set standards that are consistent with the International Financial Reporting System (IFRS), ensuring both compliance with local laws and regulations and integration with international systems and practices. CASC has also worked to ensure that international standards are adopted through training courses and conferences, as well as through active participation in forums such as the International Accounting Standards Board (IASB).
In order to ensure that Chinese enterprises comply with international financial reporting system (IFRS) standards, the CASC publishes “Accounting System Guidelines” and “Accounting Standards” through the Chinese Ministry of Finance. These documents are the basic reference documents used by all accounting-related bodies in China, and they include a comprehensive set of rules and regulations on significant issues, such as accounting treatment and financial statement format.
In order to strengthen its oversight of the financial reporting process, the CASC has also established a monitoring system. This system consists of a series of actions that enables CASC to track and evaluate the performance of listed companies and to monitor their compliance with accounting standards.
In addition to setting and enforcing standards, CASC is dedicated to educating the public about China’s accounting system. The CASC works to promote understanding of financial reporting by holding public lectures, issuing publications, and conducting research on accounting topics. Through these activities, the CASC seeks to ensure that Chinese individuals and businesses are knowledgeable of current accounting standards and practices.
The CASC is also a member of the International Accounting Standards Committee (IASC), an organisation comprised of more than 100 countries responsible for establishing international accounting standards. Through its membership in the IASC, the CASC can collaborate with other countries in the development of international accounting standards.
The CASC has become an instrumental part of the Chinese accounting system and its mission to preserve the integrity of financial reporting and accounting standards in China. The CASC plays an important role in engaging stakeholders in the standard setting process and encouraging the adoption of international financial reporting standards in Chinese companies.
