Asset verification

Asset verification: a full count of what an entity actually owns and owes

Account cleansing, physical inventory, debt confirmation, loss recognition and revaluation — carried out to the format required by the supervising authority or the restructuring plan.

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Overview

What this is

Asset verification is a full review of an entity's assets, liabilities and equity: every balance is reconciled, counted and, where required, revalued. It is used for state-owned enterprise restructuring, asset checks at public institutions, corporate reorganisation and the pre-liquidation assessment of what is actually there. We run the account reconciliation, physical counts, third-party confirmations, loss recognition and revaluation in line with the applicable rules, and issue a report that supports the restructuring plan, the reorganisation pricing and the approval submission. This work often surfaces historical issues, so we proceed on a prudent and documented basis and help the entity deal with them within the compliance framework.

Scope

What the work covers

Account cleansing and base date — accounts are cleansed and reconciled, and the base date, scope and basis are fixed.
Physical inventory — cash, inventory, fixed assets, construction in progress and receivables or payables are counted item by item into a schedule.
Debt verification and confirmation — balances confirmed one by one, material amounts independently confirmed, contracts and documents checked against the ledger.
Revaluation and impairment — assets revalued or tested for impairment under the standards to establish net realisable value and recoverable amount.
Loss and gain recognition — inventory gains and losses, scrapping, and bad or doubtful debts are recognised with a reason and basis recorded for each item.
Submission and approval support — we help prepare the submission and respond to queries from SASAC, the supervising body or the shareholders' meeting.

Deliverables

What you receive

Asset verification report

Issued in the format required by the SASAC or supervising authority, with an anti-counterfeiting number and sealed.

Asset inventory schedule

A working schedule by category, age and condition, ready to submit.

Loss and gain recognition detail

Item-by-item recognition of inventory differences, scrapping and bad debts, with the basis for each.

Ageing and recoverability analysis

Ageing profile of receivables and a recoverability assessment supporting bad debt recognition.

Reconciliation of differences

Item-by-item reconciliation between book figures, counted figures and recognised figures.

Query and follow-up support

Written responses to review questions, and in-person reporting where needed.

Who needs this

Who this is for

SOE restructuring

Asset review before state-owned enterprise restructuring or mixed-ownership reform.

Public institutions

Asset checks and submissions to the supervising authority.

Corporate reorganisation

Asset and liability review before merger, division or restructuring.

Pre-liquidation

Verification of assets and liabilities, and loss recognition, before liquidation.

Equity changes

A full count before shareholder change or capital increase.

Historical issues

Targeted cleansing of idle assets and long-standing suspense accounts.

Report uses

What the report is used for

Restructuring approval — asset review evidence for the plan submitted for approval
Reorganisation pricing — the asset and liability base for pricing the transaction
Asset filing — filings with the supervising authority and SASAC
Loss recognition — documented basis for writing off losses
Judicial and liquidation — evidence for liquidators and the court
Internal governance — establishing what the entity actually holds

Pricing

How we price it

A written fixed fee, agreed before we start. The figures below are indicative and depend on scope.

Small entities

From RMB 10,000 — assets under RMB 10m, standard review.

Medium entities

RMB 20,000 – 50,000 — assets RMB 10m to 100m, including third-party confirmations.

Large or SOE

From RMB 50,000 — assets over RMB 100m or involving restructuring, including loss recognition.

Scope-based

For a targeted review of specific accounts, we quote the scope rather than the balance sheet size.

The final fee is confirmed in writing after we understand the requirement. No hidden charges; rush work is agreed in advance.

Documents

What we need from you

A full checklist is issued after engagement. These are the main items.

Copy of business licence or registration certificate
Financial statements, general ledger, sub-ledgers and trial balance
Fixed asset register and inventory count sheets
Inventory count sheets (including age and condition)
Receivable and payable detail (trade and other)
Bank statements for all accounts
Title documents (property, vehicles, land)
Explanations for long-standing suspense accounts

Process

From first email to finished work

1. Initial call

Scope, timeline and a free indicative quote by phone, WeChat or WhatsApp.

2. Engagement letter

Scope, fee and timeline fixed in writing, with the full document list issued once.

3. Fieldwork

The team performs inspection, verification and calculation; difficult items are examined directly.

4. Report issued

Three-level review, then the sealed report is delivered and follow-up support continues.

Timeline

How long it takes

Standard engagements are issued about 5–10 working days after documents are complete; urgent work can be turned around in 3 working days. The main variables are accounting complexity, whether physical inventory or confirmation is required, how quickly documents move between us, and whether the work has to be coordinated with valuation or tax.

FAQ

Questions we get asked

Is asset verification the same as asset valuation?

No. Verification reconciles and counts what exists; valuation assesses what it is worth. The two are often used together.

What is the report used for?

Approval of restructuring plans, asset disposal filings and reorganisation pricing. It is a core document for supervising authorities.

Can historical bad debts be written off?

Only where the loss recognition policy is met and the evidence chain supports it. We help prepare the evidence and issue an attestation opinion.

Is the report valid for external use?

It carries the firm seal and the CPA's signature with an anti-counterfeiting number, and is accepted by SAMR, tender panels, banks and the courts.

Can this be handled remotely or from another city?

Yes. Documents can be couriered or sent electronically, and physical counts can be coordinated by video. Where attendance is required, we say so in advance.

How is the fee set, and are there hidden charges?

A written quote based on scale, complexity and deadline, fixed on signature. Rush work or scope changes are agreed first. There are no hidden charges.