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Q：
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What is the purpose of formulating the Accounting Law of the People's Republic of China?
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A：
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The Accounting Law of the People's Republic of China is formulated to standardize accounting practices, ensure the authenticity and completeness of accounting materials, strengthen economic and financial management, improve economic efficiency, and maintain the order of the socialist market economy.
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Q：
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Which department is in charge of accounting work?
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A：
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The financial department of The State Council is in charge of accounting work throughout the country. The financial departments of the people's governments at or above the county level shall be in charge of the accounting work within their respective administrative regions.
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Q：
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Which economic business matters should each unit handle accounting procedures and conduct accounting calculations for?
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A：
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Increase, decrease and use of assets;
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Increase or decrease in liabilities;
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Increase or decrease in net assets (owner's equity);
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Increase or decrease in income, expenditure, expenses and costs;
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Calculation and processing of financial results;
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Other matters that require the handling of accounting procedures and accounting calculations.
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Q：
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How is the accounting year defined?
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A：
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The fiscal year runs from January 1st to December 31st of the Gregorian calendar.
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Q：
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Which currency is used as the bookkeeping base currency for accounting calculations?
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A：
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Accounting calculation uses the RMB as the base currency for bookkeeping. Units whose business income and expenditure are mainly in currencies other than the RMB may select one of these currencies as the base currency for bookkeeping, but the financial accounting reports they prepare shall be converted into RMB.
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FAQ
