Enterprise Accounting System Implementation Manual (Vol. 1, 2, and 3)

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Features: The "Enterprise Accounting System" is a significant measure in the reform and development of accounting and a major milestone in the substantive reform of accounting standards, following the "Accounting System for Joint Stock Companies" and ten specific accounting standards. It transformed the previous accounting system, which merely focused on simple recording and reflection, into a comprehensive regulation covering the entire process of recognition, measurement, recording, and reporting of accounting elements. This shift brought the recognition and measurement of accounting elements back from the financial system to the accounting system, aligning with the inevitable trend of accelerating the internationalization of accounting in China upon its entry into the World Trade Organization. However, due to the complexity of China's enterprise realities, particularly the former industry-specific financial accounting systems implemented by state-owned enterprises, the transition to the "Enterprise Accounting System" required an adaptation period. This period was primarily driven by two factors: First, as the internationalization of accounting accelerated, the accounting system inevitably introduced certain standards that relied on experience and professional judgment, such as the four conditions for revenue recognition, which needed to be determined through professional judgment in practice. This regulation differed significantly from the previous strict adherence to national financial accounting systems, requiring an adaptation period for enterprise accountants. Second, due to the unreasonable provisions of the industry-specific financial accounting systems and the non-compliant execution of enterprises to protect profits, substantial bad assets accumulated. These bad assets needed a process of clearance.
Considering that joint-stock companies had implemented a series of updated accounting standards in recent years, particularly the "Provision for Four Items" policy implemented in 1999, they had already mastered and begun applying professional judgment. Company accountants and certified public accountants had gradually adapted to the wave of reforms over the past few years. Therefore, the "Enterprise Accounting System" began implementation in the scope of joint-stock companies starting January 1, 2001, and was gradually extended to all enterprises.
In line with the requirements of the Ministry of Finance, all enterprises are now required to thoroughly study the "Enterprise Accounting System" to accelerate alignment with international accounting standards and prepare for the challenges of joining the World Trade Organization. To assist in learning, understanding, and mastering the reformed enterprise accounting system, we have organized leaders, experts, and scholars from the Ministry of Finance, Renmin University of China, and other institutions to compile the "Enterprise Accounting System Implementation Handbook."