On January 1, 2021, several new accounting standards affecting revenue, leases and financial instruments, will come into effect for non-listed companies in China. These new standards will affect different businesses' accounting practices in different ways, making it vital that companies understand the changes the new standards will bring. For example, some firms may need to change when they recognize revenue while others may need to add right-of-use assets and lease liabilities to their balance sheet.
The higher requirements brought on by the new standards can make handling accounting work in the new year challenging. Now is the perfect time to build your company's understanding of the major changes under the new accounting standards and how they can affect your accounting practices, financial statements, and even business operations.