China Securities Regulatory Commission, Guidelines on the Contents and Format of Annual Reports of Securities Companies (2008 Revision)

Promulgated: January 14 2008
Effective: as of date of promulgation

Main Contents: Article 5 specifies the types of reports that shall be audited by accounting firms with securities- and futures-related business qualifications: financial reports of securities companies; the annual financial reports of securities companies that prepare consolidated financial statements, subsidiaries that fall under the scope of consolidation and special purpose entities; the annual financial reports of jointly-operated companies and joint ventures that have a major impact on the financial reports of securities companies; and other special reports required by the China Securities Regulatory Commission. Securities companies must publish the full text of the audit opinion of the certified public accountant in the main body of their annual reports (Article 6). Accounting firms responsible for the audit of annual financial statements of securities companies shall conduct testing and assessment of the internal controls of the company and issue a special report on the review of internal controls (Article 7).

The Guidelines require companies to disclose information such as: