Guide to Accounting and Audit in China 2026 – New Publication Out

Posted by Written by Qian Zhou Reading Time: 3 minutes

Guide to Accounting and Audit in China 2026 (4th Edition), the latest publication from China Briefing and Dezan Shira & Associates, is out now and available for download through the Asia Briefing Publication Store.

The start of a new year is a hectic time for foreign companies in China. To meet the various compliance deadlines throughout the year, they need to begin the long and complicated financial reporting process months in advance. Failure to comply will risk them being hit with deteriorating credit, additional fines, and penalties, and such companies might not be able to remit their profits overseas.

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With businesses operating in a volatile, unexpected, complex, and ambiguous (VUCA) world, financial health and compliance have become more important than ever. More attention should thus be given to the audit and compliance procedures to reveal unexpected irregularities or suboptimal business practices, discover eligibility for tax incentives that had not previously been captured, as well as maximize efficiency within the organization.

China Briefing’s Guide to Accounting and Audit in China 2026 (4th Edition), produced in collaboration with the audit experts at Dezan Shira & Associates, aims to walk foreign businesses through the annual audit and compliance process from start to finish, in addition to introducing China’s accounting framework in a comparative context. We hope this guide helps your business add value to its annual statutory audit and compliance reporting in China.

The guide covers the following:

  • Chinese accounting standards
  • Annual audit and other special purpose reviews in China
  • Annual compliance requirements

This practical and easy-to-understand guidebook will be of invaluable use to all executives involved in handling company finances concerning China, including:

  • Chief Executive Officers;
  • Chief Financial Officers; and
  • Accounting Managers.

In this year’s updated version of Guide to Accounting and Audit in China, there are notable changes that require your attention:

  • Accounting standards adopted in China: We have completely restructured this section to make it clearer and more practical. The revised content now provides a systematic overview of China’s accounting framework. Each standard is explained, with guidance on applicability, key features, and recent updates, helping readers understand which framework applies to foreign-invested enterprises and why.
  • New changes to China’s accounting system: In 2025, China introduced several significant updates to its accounting system. These include the release of Interpretation No. 18 and the exposure draft of Interpretation No. 19 under the Accounting Standards for Business Enterprises. We also cover the four new implementation Q&As and one application case issued by the Ministry of Finance, which address practical issues like fixed asset depreciation, R&D cost treatment, and revenue recognition. Additionally, this section introduces the Electronic Voucher Accounting Data Standard, a milestone in China’s digitalization of accounting processes, along with an analysis of emerging trends such as sustainability reporting and automation.
  • Special purpose reviews: This edition expands the discussion on compliance audits for personal information protection, reflecting the new Measures for the Administration of Compliance Audits on Personal Information Protection, effective May 1, 2025. We also emphasize the growing importance of tax health checks for foreign-invested enterprises, explaining how they mitigate risk and enhance taxpayer credit ratings. A new subsection on forensic audits has been added, outlining their role in fraud detection, regulatory compliance, and governance improvement.
  • Annual compliance of NGOs: We have added a dedicated section on annual compliance requirements for foreign NGOs operating in China. This includes a step-by-step timeline for submitting activity plans, annual work reports, and inspection documents, as well as detailed guidance on preparing financial accounting reports.

We hope this guide helps your business add value to its annual statutory audit and compliance reporting in China.

How We Support Your Business

Our Compliance and Risk Management teams specialize in managing and assisting with the creation, review, and implementation of companies’ risk practices and compliance policies that position them to better meet local and corporate regulatory requirements, prepare for unexpected risk, and build sustainable corporate value in Asia.

  • Internal and Management Audits
  • GAAP Review and Conversion
  • Inventory Audit, Observation, and Stock-taking
  • Accounting health checks
  • Sarbanes-Oxley advisory
  • Financial compliance review
  • Internal control review and training
  • Fraud prevention and investigation
  • Risk management advisory
  • Annual statutory audit assistance
  • Statutory audit documentation arrangement and preparation
  • Statutory audit review

Connect with our local experts for more details: China@dezshira.com.

About Us

China Briefing is one of five regional Asia Briefing publications. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Haikou, Zhongshan, Shenzhen, and Hong Kong in China. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in Vietnam, Indonesia, Singapore, India, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

For a complimentary subscription to China Briefing’s content products, please click here. For support with establishing a business in China or for assistance in analyzing and entering markets, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.