In a bid to prod Chinese listed companies to increase the transparency of information, the Ministry of Finance released three detailed rules of accounting Thursday.
By stipulating requirements on bookkeeping of intangible property, cost of lending and leased properties of enterprises, the new rules will help improve the accuracy of financial information that the listed companies released. The aim of the move is to ensure the healthy development of the country's securities market.
In the same time, the Ministry of Finance also readjusted five detailed accounting rules that have already been in force. The adjustment will effectively prevent companies from manipulating profits through debt restructuring and non-monetary deals.
The new rules took effect for all companies from January 1, except the rules on intangible property and investment, which will only be applicable to listed companies for the time being.
(Xinhua 02/09/2001)
