Hong Kong Institute of Certified Public Accountants

Workshops on PRC Accounting, Auditing, Capital Market and Taxation

Accounting Module covers the accounting regulatory framework; accounting for assets, liabilities, equities, profit and loss item and other accounting adjustments; financial accounting reports; performance evaluation; comparison with IFRS case study and other contemporary accounting issues in China: Session 1 PRC Accounting Regulatory Framework   - PRC accounting development and present status; accounting regulatory framework, standard setting process and supervision   - Prevailing regulations and application Accounting of Assets, Accounting of Liabilities, Equities, Profit and Loss Items, and Other Accounting Adjustments   - Comparison of PRC and Hong Kong regulatory frameworks   - Reforms brought by the accounting law, regulations on financial reporting, accounting system for business enterprises, comparison with "Two Systems-Two Standards"   - Comparison of general accounting principles and definitions of accounting elements   - Adoption with international practices   - Current Assets including short-term investments, accounts receivable, inventories   - Long Term Investments   - Fixed Assets   - Intangible Assets & Other Assets   - Including non-monetary transactions, debt restructuring, equity accounting, leases, borrowing cost, foreign exchange control   - Liabilities   - Owner's Equities   - Revenue   - Costs and Expenses   - Profit and Distribution   - Other Adjustments Items including provisions & contingencies, changes in accounting policies and estimates, correction of errors, post-balance sheet date events, related party relationships & transactions Session 2 Financial Accounting Reports, Consolidated Accounts, Business Combinations, Performance Evaluation, Financial Statements Case Study, Other Accounting Issues, Conclusion   - Financial Accounting Reports   - Requirements for Listed Companies   - Comparison with International Accounting Standards and Practices   - Performance Evaluation System   - Consolidated Accounts   - Accounting for Business Combination   - Case Study: Latest annual reports of several Chinese companies listed in China and overseas   - Accounting of Business Bankruptcy   - Accounting of Commodity Futures   - Accounting for SME standards   - Internal Accounting Control Procedures   - Earnings Management of Chinese Listed Companies and its Impacts on Stock Market   - Conclusion Auditing Module examines the development of auditing profession and auditing standards, the issues relating to auditors’ independence and liabilities in China: Session 1 PRC Auditing Profession and Auditing Standards, Auditor Independence and Liabilities   - The Framework of China's Independent Auditing Standards     - General Auditing Standards     - Specific Auditing Standards   - A Comparative Analysis with International and Hong Kong Standards   - Legal Liabilities of Chinese CPAs   - Case Studies Capital Market Module examines the development of capital markets and listing rules in China: The development of China's capital markets   - The formation and initial development of China's capital markets     - Establishing a centralized regulatory and supervisory framework     - The legal framework shapes up     - Establishing an approval system for share issuance     - The inauguration and development of stock exchanges     - The growth of intermediaries     - The emergence of securities investment funds and their regulation     - Initial attempts in developing the futures markets     - Opening-up to the outside world   - The further regulation and development of China's capital markets     - Refinement of the capital markets' legal and regulating system     - Development of market discipline in capital markets     - Efforts to develop a multi-layered market system and diversified product structure     - The initial development of the bond market     - WTO accession and the opening-up of China's capital markets Important policies and reforms in recent years   - Non-tradable Share Reform   - The background of Non-tradable Share Reform   - Main elements of the reform and implementation process The challenges China capital market facing, its strategies and prospects   - Strategic objectives and fundamental principles   - Development strategies   - Prospects for China's capital markets Several topics in China's capital market   - Management buyout (MBO)     - Background of china's MBO     - How to take MBO in China: Five MBO models in China   - Private equity (PE)     - The emergence of PE in China     - Foreign PE in China     - Case study: Carlyle Group in China   - M & A     - China's M & A in the past 5 years     - Case study: Tsingtao Beer's acquisitions     - M&A regulations     - Outbound investment regulations     - Deal structure for foreign investors   - Qualified Foreign Institutional Investors (QFII)     - Launch of the QFII program in China     - The performance of QFII in China     - The impact of QFII on China's capital market   - Listing rules     - The evolution of China's listing rules     - Issuance system reform     - Case study: The IPO of China Yangtze Power Co., Ltd (600900) Tax Module (same contents for the Taxation Workshops) covers an overview of the current tax regime; Individual Income Tax; Investment Enterprise and Enterprise Income Tax; Business Tax; Value Added Tax; transfer pricing and other PRC tax planning strategies: Session 1 Overview of PRC Taxation System   - PRC Taxation Reforms and Current Tax Regime   - Types of Tax   - Structure of PRC Tax Laws and Regulations   - Structure of PRC Tax Administrative System   - Individual Income Tax (IIT)     - Scope of IIT     - Liability to IIT     - Tax Status of Employees of Chinese Establishments     - Tax Status of Non-resident Traveling Employees     - Calculation of Tax Liability     - Application of Memorandum between the Mainland China and the HKSAR for the Avoidance of Double Taxation (Memorandum)     - Taxation Employment Remuneration     - Non-taxable Benefits   Session 2 Investment Enterprise and Enterprise Income Tax   - Forms of Business Presence in China   - Tax Status of Foreign Investment Enterprises   - Applicable Tax Rates   - Preferential Treatments   - Locally Granted Preferential Treatments   - Entitlement to Tax Holiday   - Taxability of Income   - Deductibility of Expenses   - General Principle   - Major Income Stream   - Withholding Tax   - Reinvestment of After-tax Profit   - Representative Office   - Provision of Management and Consulting Services   - Business Agent   - Permanent Establishment (PE) Principles   - Timing for Filing   - Location for Filing   Session 3 Business Tax (BT)   - Scope of Taxation   - Specific Exempted Activities   - Specific Exempted Income   - Determination of Taxable Amount   - Business Tax Rate   - Timing of Liability and Filing   - Location for Reporting   - Reporting Obligations   - Mixed Sales Activities   - Apportionment of Onshore/Offshore Service Income of Foreign Enterprises Value Added Tax (VAT)   - General Principles   - Taxation Scope   - VAT Rates   - VAT Credit Mechanism   - VAT Exempted Goods   - Deemed Sales   - Creditable Input VAT   - Non-creditable Input VAT   - Determination of Taxable Amount   - Timing of Liability   - Timing of Filing   - Location of Filing   - VAT Administration   - VAT Export Refund   - "Exempt, Credit, Refund" Method   - Latest Development   Session 4 Transfer Pricing   - Definition of Related Parties   - Pricing Adjustment Methods for Related Parties Transactions   - Administration for Related Parties Transactions Board of Review cases Cross-border tax issues   Session 5 Tax Planning   - Tax Benefit   - Tax Treaties   - Low Tax Countries   - Chinese Holding Company   - Export Refund   - Case Studies