Accounting Standards for Business Enterprises 2014
The Ministry of Finance—“MOF” issued in January 2014 three new Accounting Standards for Business Enterprises: Presentation of Financial Statements (ASBE 39), Employee Benefits (ASBE 40), and Fair Value Measurement (ASBE 41).
- PDF / 182,691 Bytes
- 28 Pages / 439.37 x 666.142 pts Page_size
- 80 Downloads / 190 Views
Accounting Standards for Business Enterprises 2014
The Ministry of Finance—“MOF” issued in January 2014 three new Accounting Standards for Business Enterprises: Presentation of Financial Statements (ASBE 39), Employee Benefits (ASBE 40), and Fair Value Measurement (ASBE 41). Moreover, in February and March 2014, the MOF revised Accounting Standards for Business Enterprises on long-term equity investments, consolidated financial statements, joint arrangements, and disclosure of interests in other entities.
43.1
Accounting Standards for Business Enterprises Reviewed in 2014
43.1.1 Accounting Standards for Business Enterprises No. 33—Consolidated Financial Statements During the year 2014, the MOF edits the “Accounting Standers for Business Enterprises.” The first ASBE they edited was the ASBE no. 33. The main changes occurred in this principle are the following: – In the ASBE 33, there is no mention to circumstances that allowed parent company not to prepare the consolidated financial statements. Under current PRC GAAPs, there are three types of enterprises that are required to prepare consolidated financial statements. Other enterprises may also choose to prepare consolidated financial statements voluntarily. – Specifies the scope of consolidation shall be determined based on “control.” – All subsidiaries under the control of a parent shall be consolidated. The current ASBE introduces an exception: certain subsidiaries are exempted from consolidation, for example, where total assets, sales revenue, and profits of the subsidiary are less than 10 % of the corresponding amount of the group, subsidiaries declared bankrupt, subsidiaries engaged in specific industries, etc. – A set of consolidated financial statements shall include a consolidated statement of changes in equity. However, the consolidated statement of profit appropriation is removed in the new ASBE 33. © Springer Science+Business Media Singapore 2016 L. Riccardi, China Accounting Standards, DOI 10.1007/978-981-10-0006-5_43
307
308
43
Accounting Standards for Business Enterprises 2014
– For a business combination not under common control, the identifiable net assets of the subsidiary shall be adjusted to their fair values at the date of acquisition when preparing consolidated financial statements. – For a business combination involving enterprises under common control during the reporting period, the consolidated balance sheet includes the net assets of the combining entities using the book values; the consolidated income statements include the results of the combining entities for the full period (including the comparative periods). – If the losses applicable to the minority shareholders in a subsidiary exceed the minority interest in that subsidiary’s owners’ equity at the beginning of the period, the excess is used to reduce minority interest in equity to the extent that the minority shareholder has a binding obligation and is able to make an additional investment to cover the losses. Otherwise, the excess is allocated against the owners’ equity of the parent
Data Loading...
