In this article, we will focus on understanding and analyzing the typical accounts of Chinese financial statements, including the balance sheet and income statement.
In our firm’s 15 years of experience in China, when called upon to examine accounts prepared by Chinese businesses, we have consistently found that accounts we have analyzed have been incorrectly prepared. This can be due to several factors, like incompetence, as well as more serious cases of deliberate attempts to deceive. Regardless, accounts can be understood and errors or specific acts of misrepresentation uncovered.
In this article, we will conduct some simple analysis to demonstrate how these can be spotted.
For more information about Chinese financial statements, please contact our accountants in China.
