Our collection of resources based on what we have learned on the ground
Resources
Q&A
What does the financial statement of a company in India entail?
- June 2014
- Members Access
The financial statements should include a balance sheet, profit & loss account, cash flow statement and notes to accounts. Ensuring a company’s balance sheet provides a true and fair reflection of its current state of affairs requires an a...
Q&A
What do statutory audits in India entail?
- June 2014
- Free Access
Statutory audits are conducted to report the current state of a company’s finances and accounts to the Indian government and shareholders. Such audits are performed by qualified auditors working as external and independent parties. The audit re...
Q&A
What are the rules for tax audits in India?
- June 2014
- Members Access
Tax audits are required under Section 44AB of India’s Income Tax Act 1961. This section mandates that those whose business turnover exceeds INR 10 million, and those working in a profession with gross receipts exceeding INR 2.5 million, must ha...
Q&A
What is required for company audits in India?
- June 2014
- Members Access
The provisions for company audits are contained in the Companies Act 1956 and Companies Act 2013 as applicable. Every company, regardless of its nature of business or turnover, must have its annual accounts audited each financial year. For this purpo...
Q&A
Which opinions may an auditor in India express in the report?
- June 2014
- Members Access
The auditor’s opinion in expressed in the ultimate report is based on the information gathered during the audit and the verification of financial statements. Upon completing the report, the auditor may express one of the following four opinions...
Q&A
Are enterprises located in the Shanghai Free Trade Zone (FTZ) permitted to borro...
- May 2014
- Members Access
According to the Notice Concerning Support to Further Expand the Cross-Border Usage of RMB in the Shanghai FTZ, non banking financial institutions and enterprises located in the Shanghai FTZ are permitted to borrow RMB funds from offshore sources. Ho...
Q&A
How should a foreign enterprise prepare an audit report in China?
- May 2014
- Members Access
All foreign-invested enterprises (FIE), including wholly foreign owned enterprises (WFOE), joint ventures (JV), and foreign-invested commercial enterprises (FICE), are required to hire external accounting firms to conduct and annual audit of the comp...
Q&A
What is the Chinese equivalent of the Generally Accepted Accounting Principles o...
- May 2014
- Members Access
The Chinese Accounting Standards (CAS) framework is based on two standards: the Accounting Standards for Business Enterprises (ASBEs) and Accounting Standards for Small Business Enterprises (ASSBEs). For most enterprises established in China, ASBEs a...
Q&A
What are the required documents representative offices (ROs) need to provide to ...
- May 2014
- Free Access
ROs are required to complete an AIC annual inspection between March 1 and June 30. Generally the following documents should be provided: Annual inspection report (the template will be distributed by AIC around March) Business registration certifi...
Q&A
What are the penalties if a representative office (RO) fails to provide its repo...
- May 2014
- Members Access
Penalties of RMB 10,000 to RMB 30,000 are applicable if the RO fails to provide its report to the AIC on time, and a RMB 20,000 to RMB 200,000 penalty applies if the report includes false information. Failure to comply may also lead to revocation of ...
Q&A
Do representative offices (ROs) need to complete a tax reconciliation report of ...
- May 2014
- Free Access
ROs are obliged to complete a tax reconciliation report of CIT as part of their annual compliance. The report should be submitted to its local tax bureau by May 31. Usually an audit report is not required for ROs paying CIT based on a deemed profit s...
Q&A
Why is successful audit & compliance crucial to a foreign-invested entity?s (FIE...
- May 2014
- Members Access
External audit is crucial to FIEs because it provides more accurate financial information, and a review through an outsider’s eye can more effectively dig out flaws in the company’s internal control and financial data. It is also a goo...
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