Who: A Sino-American service company with operations in North China.
Background: During the monthly review of the financial statements, the foreign partner, who was not familiar with some Chinese accounting principles, could not understand the financial statements prepared by the Chinese accounting team. It suspected a mistake had been made during the recording process.
Objective: To verify that the set of financial statements were accurately prepared, in order to ensure relevance, reliability, comparability and consistency.
Dezan Shira & Associates´ expert team uncovered that the financial statements weren't prepared in accordance to International Financial Reporting Standards (IFRS) but Instead followed Chinese Accounting Standards (CAS). This difference in preparation of financial statements was leading to misunderstandings and problems between the Chinese and foreign parties.