China Securities Regulatory Commission, Compilation Rules for Information Disclosures by Companies That Offer Securities to the Public No.15 - General Provisions for Financial Reports

Issued: December 30 2001
Effective: as of date of issue
Interpreting authority: China Securities Regulatory Commission
Applicability: These Rules shall be complied with when a complete financial report shall be disclosed by a company whose shares are initially offered to the public or whose shares are already issued and listed on a stock exchange (hereafter the Company) (Article 2).

Main contents: The Rules require the Company to prepare and disclose its financial statements in accordance with the relevant accounting and disclosure standards and rules (Article 9). The required financial statements include balance sheets, profit and profit distribution statements and cashflow statements (Article 10). In addition, the Company shall prepare and disclose notes to such financial statements in accordance with the relevant accounting standards and the requirements of the Rules (Article 15). The requirements regarding the contents of such notes are detailed in 12 sections in the Rules (Part Three). These notes shall cover the basic information of the Company (Section 1), the accounting policies, accounting estimates and method of preparing consolidated financial statements (Section Two), taxes (Section Three), subsidiaries and joint ventures (Section 4), notes to the items in the financial statements (Section Five), notes to the relevant items in the financial statements of the parent company (Section Six), impact on the consolidated statements in the event of inconsistency in accounting policies between a subsidiary and the parent company (Section Seven), affiliated parties and affiliated transactions (Section Eight), contingencies (Section Nine), undertakings (Section 10), post-balance sheet matters (Section 11) and other important matters (Section 12).
Related legislation: PRC, Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21 and PRC, Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p31