On 15 February 2006, China announced the release of a new set of accounting and auditing standards.
The new Chinese Accounting Standards System issued by the China Accounting Standards Committee (CASC) is a comprehensive body of pronouncements, including a "basic" (framework) standard, 38 specific standards and related guidance. It addresses most of the issues covered at the international level by the International Financial Reporting Standards (IFRS). Although some differences remain between the two standard systems, convergence has been clearly reaffirmed as the ultimate goal during the release ceremony, which was attended by Sir David Tweedie, Chairman of the International Accounting Standards Board. These standards are applicable from 1 January 2007 to all enterprises listed in China. The current "Accounting System for Business Enterprises" adopted in 2001 remains applicable to other enterprises, including foreign-invested enterprises, as well as the specific - but similar - "Accounting System for Financial Institutions" applicable since 2002 to banks, insurance companies, brokerages, leasing and finance companies.
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