Bilingual English & Chinese Tax consultants & advisory services

Demographics are becoming a drag with the working age population already in decline and the total population reportedly peaking in 2022. Urbanisation still has further to go but is more advanced at around 65%, and demographics will also impact real estate, which is already a high share of GDP. Meanwhile, investment in infrastructure is also unlikely to continue at the pace seen in recent decades. Finally, China is facing the “middle income trap” and needs to continue to move up the value chain and grow its intellectual and human capital. Unexpectedly, the government announced that its Covid policy was moving to a new stage and mission, citing the lower fatality rate from Omicron.
The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws. Effective auditing of companies’ financial statements is important for investor confidence, but Chinese companies traded in the U.S. don’t get U.S. oversight of their audits as other companies do. Our integrated service delivery model that combines professionals in China with extensive knowledge of SEC and PCAOB accounting standards 纽约会计 with U.S.-based industry leading experts in technical accounting, international tax, and compliance issues. We provide financial due diligence and forensic accounting services for overseas investors and companies seeking to invest in China. And we offer comprehensive services to Chinese companies and individuals for overseas expansion, including M&A, global tax, capital verification, financial due diligence, real estate, and EB-5 investment services.

Human rights advocates have tied AVIC drones to civilian casualties in airstrikes in the Middle East and North Africa. In November 2019, for example, a UAE drone strike allegedly launched by an AVIC Wing Loong-II killed eight civilians and injured dozens of others at a biscuit factory near Tripoli, Libya. As the tax  shelter industry grew, Baker McKenzie became expert at helping companies route profits, at least on paper, to countries with low tax rates. And when a government moved to close a loophole, Baker McKenzie or other law firms would look for a new one. In the United Arab Emirates, Baker McKenzie takes credit for helping to create free zones — areas of low taxes and light regulation that critics say have encouraged illicit activity.
Therefore, in order not to be suspended and thus affecting the operating conditions, some companies have increased the company’s annual profits by fraudulently trading, fictitious income, and other financial frauds. As a third-party auditing accounting firm, on the one hand, it is required to publicly announce the audit results of the financial report. On the other hand, it is employed by the company to provide services for the company. In order to increase the scale of business, seize customer resources, increase market share, it sometimes has to meet some “special” requirements of the companies. Finally, there things were eventually investigated by the regulatory agencies. PCAOB inspectors will begin their on-site inspections in mid-September 2022, which would include access to all necessary audit working papers.
Our interest in Chinese students in US accounting and business PhD programs stems from our experiences and observations of the American Accounting Association Doctoral Consortium. Each university that offers a PhD program in accounting nominates one student to represent their program at this event. The Consortium's major sponsor, Deloitte & Touche USA LLP, describes the event as one that “brings together leading accounting doctoral students and distinguished faculty” to “share their experiences, ideas, and research on important issues in accounting research and education” . According  to the American Accounting Association, the “primary objective of the Doctoral Consortium is to improve the quality of future accounting education and research by enriching the experience of outstanding doctoral candidates, who are selected from a broad cross-section of universities” .

GAAP may be contrasted with pro forma accounting, which is a non-GAAP financial reporting method. Internationally, the equivalent to GAAP in the U.S. is referred to as International Financial Reporting Standards . David Kindness is a Certified Public Accountant and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning. David has helped thousands of clients improve their accounting and financial systems, create budgets, and minimize their taxes. All applications are stored in a database which is consulted by hiring Managers based on business needs.
The CSRC, China’s version of the SEC, announced its own approval process for overseas listings, including companies that employ a VIE structure to get around limitations on foreign ownership in restricted sectors like media and telecom. But so far, the agency has not approved any listings, and the process remains unclear. In response, Congress passed the Holding Foreign Companies Accountable Act, signed into law in December 2020, and set a three-year time bomb that would delist most U.S.-listed Chinese companies if the PRC refused to yield on audit inspections. It is important to note that audit oversight is directed at the accounting firm, not the public company it audits, according to the Q&A.

Zai Lab was making a similar move, but it wasn’t clear if those changes would be enough to meet SEC requirements. BioSpace reported in March that U.S. and Chinese regulators were getting closer to a cooperation plan. This appears to be edging even closer now, although this issue has been ongoing for 20 years.
The PCAOB cannot inspect audit work and practices of PCAOB-registered accounting firms in China with respect to their audit work of US reporting companies. Such barriers undermine the fair and transparent financial reporting at the heart of the US capital markets. As a result, ULCCs are generally not subject to the same requirements as apply to domestic US issuers. The HFCA Act is a culmination of many years of concern by U.S. authorities regarding the lack of transparency of Chinese companies  listed on U.S. stock exchanges. Under the Sarbanes-Oxley Act, the PCAOB is required to inspect registered accounting firms to ensure their compliance with auditing standards. This is not a small subset of companies; as of September 14, 2022, there were 249 Chinese companies whose securities trade on US exchanges with a total market cap of approximately $915 billion.

Its authority includes the registration, inspection, and investigation of audit firms, including firms located in foreign jurisdictions that are engaged to conduct audits of foreign companies listed on US exchanges. With respect to accounting firms headquartered in foreign jurisdictions, the PCAOB typically enters into cooperative arrangements with foreign regulators, and it works with foreign regulators to address any concerns regarding data protection, state secrecy, or other sensitive substantive concerns. Of perhaps greater concern are the apparent contradictions between U.S. and Chinese descriptions of the SOP agreement. By increasing the risk of forced delistings, the HFCAA threatens to permanently shut Chinese firms off from such privileges.
Australian accounting firms, due to a revealed preference to hire white Australian graduates, appear to be missing out on a vast reservoir of Chinese talent. Chinese accounting graduates speak two or three languages and have established business networks in China or at the very least insider knowledge of how that country's business culture operates. Whilst their sub-cultural capital may be lower on average than white graduates on some conventional measures, it is higher in those areas of bilingual capability and cross-cultural knowledge which are becoming of increasing importance to Australian business. In a May 24 speech, YJ Fischer, director at the SEC’s office of international affairs, said that the “PCAOB would need to be able to complete inspections and investigations by early November 2022”. Even if US and Chinese authorities reach an agreement in the near future to commence PCAOB audit inspections and investigations in China and Hong Kong SAR, “such an agreement will only be the start towards satisfying the PCAOB’s statutory mandate”. This revised law marked a large step forward for the continuing integration of world trade and capital markets, with China adopting a significant number of the accounting standards laid out by the International Accounting Standards Board.
It gives hope that further disruptions in the market for securities of China-based issuers may yet be avoided. We will continue to monitor developments in this area and welcome any queries you may have about the HFCAA and the Protocol. The SEC does not prescribe the type of documentation that can or should be submitted to the SEC to establish that a Commission-Identified Issuer is not owned or controlled by a governmental entity in the foreign jurisdiction. The SEC has declined to provide a non-exclusive list of appropriate documentation.

As corporations increasingly need to navigate global markets and conduct operations worldwide, international standards are becoming increasingly popular at the expense of GAAP, even in the U.S. Almost all S&P 500 companies report at least one non-GAAP measure of earnings as of 2019. GAAP compliance is ensured through an appropriate auditor's opinion, resulting from an external audit by a certified public accounting firm. Generally accepted accounting principles refer to a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board . Public companies in the U.S. must follow GAAP when their accountants compile their financial statements.
For the first time, ASBE gives management the authority to exercise professional experience and judgment. While the setting of the ASBE has in theory narrowed the gap between accounting issues in China and those of the Western world, the rigour of applying the ASBE may vary from province to province and from company to company. Tax deductibility for instance is different and a lack of understanding of this could lead to significant tax charges on such items as intercompany transactions. China treats transfer pricing with high importance and as with many other countries it wants its fair share of the international tax pie. Meanwhile proper planning and compliance can reduce an organisation’s tax burden. China does not follow international accounting policies and guidelines, although it has been moving in this direction for a while and with its accession to the World Trade Organisation will be fully compliant within a few years.