Work Outline of the China Accounting Standards Committee
Chapter 1 The Committee
Article 1 The China Accounting Standards Committee (hereinafter referred
to as the "Committee") under the Ministry of Finance is the advisory body for setting Chinese accounting standards. The purpose is to provide advices and recommendations for setting and improving Chinese accounting standards. Article 2 Members on the Committee are engaged by the Ministry of Finance and are widely representative, including representatives from relevant government agencies, the academic circle, the accounting profession, intermediary agencies and the business. Article 3 The major responsibilities of the Committee include: (I) To provide consultation and advices on the overall planning, structure and the development of accounting standards; (II)To provide consultation and advices on the selection of major accounting treatments in the process of setting accounting standards; (III) To provide consultation and advices on the conceptual framework of financial accounting and other related fundamental theories; (IV) To provide consultation and feedback on the implementation of accounting standards.
Article 4 Conferences held by the Committee consist of plenary meetings and meetings of professional committees. Article 5 A plenary meeting should be held at least once a year, to discuss the work of the Committee and major issues in setting and implementing accounting standards, including the work outline of the Committee, the overall structure of accounting standards, international convergence of accounting standards, the selection of major accounting treatments in the process of setting accounting standards, the implementation mechanism of accounting standards and other major issues. The plenary meeting and the meeting agenda should be proposed by the secretary-general, and approved by the chairman. The administrative office is responsible for the actual organization of the meeting. All committee members should attend the plenary meeting and the meeting should be chaired by the chairman. If, under special circumstances, a member is unable to attend, he should apply for leave with the chairman or the secretary-general in advance and submit written opinions on the topics discussed at the meeting.
Article 6 Meetings of professional committees should be held on an ad-hoc basis to discuss the major issues related to the consultation process on accounting standards carried out by respective professional committees. Meetings of professional committees and the agendas for those meetings should be proposed by the director of the professional committee and approved by the secretary-general. The administrative office is responsible for the actual organization of the meeting. All members of the professional committee should attend the meeting and the meeting should be chaired by the director of the committee. If, under special circumstances, a member is unable to attend, he should apply for leave with the director of the committee in advance and submit written opinions on the topics being discussed at the meeting. When a professional committee holds meetings of that committee, the director of that professional committee may invite members of other professional committees to attend if it is necessary. In addition, he may invite other relevant experts and staff undertaking the research projects of accounting standards or setting the accounting standards to sit on the meeting.
Article 7 After a plenary meeting or a meeting of professional committee is finished, a minute should be prepared. The content of the minute should include the topics discussed at the meeting, the progress and the result of the discussions. The administrative office should then circulate the minute to the committee members for confirmation. After the minute is confirmed, it should be announced formally, and submitted to the accounting standards setting body. Article 8 The administrative office under the Committee is set up in the Accounting Regulatory Department of the Ministry of Finance. The director-general of the Accounting Regulatory Department also serves as the director of the office.
Chapter 2 Members on the Committee
Article 9 Members are entitled to the following rights: (I) To attend the plenary meetings of the committee, meetings of professional committees and national and international seminars on accounting standards. Except under special circumstances, members should receive the discussion materials for the meetings 7 to 10 working days before the meeting is convened; (II) To provide advices on the topics discussed at the meetings mentioned above; (III) To receive research reports on accounting standard projects prepared by the professional committees and the progress reports of the Committee, the professional committees and the accounting standards setting body on a timely basis; (IV) To provide recommendations to the accounting standards setting body on major events and important issues relating to the setting and implementation of accounting standards; (V) To Obtain the advices or recommendations on accounting standards of other members and relevant parties, and the explanations relating to the adoption of those advices or recommendations by the accounting standards setting body on a timely basis; (VI) To enjoy the priority in receiving documents and formal publications on accounting standards issued by the Committee or by the accounting standards setting body. Article 10 Obligations of members are as follows: (I) To attend the plenary meetings of the committee, meetings of the professional committees and other activities on time, including seminars held by the Committee. If, under special circumstances, a member is unable to attend, he should apply for leave in advance as required, and submit written opinions on the topics discussed at the meeting; (II) To complete the tasks assigned by the Committee or the professional committees on time; (III) To provide opinions and comments on the issues raised by the accounting standards setting body for consultation; (IV) To notify the accounting standards setting body the issues arising in the process of implementing accounting standards; (V) To protect the confidentiality of information as required by the Committee, the professional committees or the accounting standards setting body.
Chapter 3 Professional Committees
Article 11 Three professional committees are set up under the Committee: (I) Professional Committee on Accounting Theory It is responsible for providing advices on the research of the fundamental accounting theories related to accounting standards, such as the conceptual framework of financial accounting etc. (II) Professional Committee on Accounting standards for business enterprises It is responsible for providing advices on the research, setting and implementation of accounting standards for business enterprises. (III) Professional Committee on Accounting for Government and Non-profit Organizations It is responsible for providing advices on the research, setting and implementation of accounting standards for government and non-profit organizations. Article 12 The Professional committee comprises of members on the Committee. For each professional committee, there is one director and two deputy directors to assist the director. The director of professional committee should be nominated by the chairman, and the deputy directors and other members on the professional committee should be nominated by the director of the professional committee, and approved by the chairman and the secretary-general. Article 13 The professional committees conduct consultation by setting up a number of research teams. The director of professional committee should set up project research teams and prepare activity plans according to the accounting standards setting plans and other important issues relating to accounting theories and accounting practices. Each project research team has a person in-charge who is appointed by the director of the professional committee, and selected from the consultant experts on accounting standards engaged by the Committee. The person in-charge of a project research team nominates other members on the team and proposes a project activity plan. The activity plan should be submitted to the director of the professional committee for confirmation. After the activity plan is confirmed by the director of the professional committee, it should be submitted to the secretary-general for approval through the administrative office before implementation. A project research team commences the consultation work under the leadership of the director and deputy directors of the professional committee. Its main activities comprise of two aspects: 1. submitting research reports on accounting standards projects; 2. proposing advices on the discussion papers, exposure drafts and draft standards issued by the accounting standards setting body. Members of the Project research team may attend relevant meetings held by the professional committees. The professional committees and project research teams may undertake research projects of accounting standards approved by the Ministry of Finance on a priority basis. The research reports on accounting standards prepared by the professional committees and their opinions concerning the discussion papers, exposure drafts and draft standards should be submitted to the accounting standards setting body after being signed by the directors or deputy directors. In case that accounting standards setting body solicits opinions from an individual member on the discussion papers, exposure drafts and draft standards, he may provide his opinions directly to the accounting standards setting body.
Chapter 4 Administrative Office of the Committee
Article 14 As the office under the Committee, the administrative office undertakes the daily work for the Committee. Article 15 The specific functions of the office are as follows: (I) The office should carry out its work under the supervision of the chairman and secretary-general. It is responsible for the organization of conferences, including the plenary meetings of the Committee, meetings of professional committees and other seminars. It is also responsible for preparing materials for the meetings and sending materials to the members within the time limit; (II) It is responsible for the communication and contact between the Committee and the accounting standards setting body, between the Committee and its members, and between the Committee and professional committees, and the exchange of relevant data and information; (III)It is responsible for tracking and managing the research projects on accounting standards undertaken by the professional committees and project research teams; (IV) It is responsible for reporting work progress to the Committee regularly; (V) It is responsible for the financial management of the Committee; (VI) It is responsible for the communication between the Committee and international accounting organizations, as well as other duties assigned by the chairman or secretary-general of the Committee.
Chapter 5 Funding
Article 16 The Committee is funded by: (I) Government subsidies; (II) Other revenues. Article 17 The fund of the Committee is used for: (I) Funds for research projects on accounting standards; (II) Expenses for various meetings held by the Committee and professional committees; (III) Allowances for the members on the committee; (IV) Other related expenses.
Chapter 6 Supplementary Provisions
Article 18 The English name of the Committee is the "China Accounting Standards Committee (Abbreviated as ¡¯¡¯CASC¡¯¡¯)". Article 19 The Work Outline has been adopted in the plenary meeting of the Committee, and shall go into effect after approved by the Ministry of Finance.