For head office · group consolidation

PRC GAAP to IFRS: China numbers your group auditor can use

Your China entity reports under PRC GAAP. Your group reports under IFRS. Between those two sits a reconciliation somebody has to prepare, explain and defend — usually to a group auditor who does not read Chinese and does not accept “that is the local rule” as an answer. We prepare the adjusted accounts and the reconciliation, in English, and we talk to your group auditor directly.

  • Reconciliation, not translation — every adjusting entry explained and evidenced, so it survives group audit review
  • We speak to your group auditor — we answer their questions directly, in English, rather than passing them back to you
  • Your format, your chart of accounts — the pack is delivered as you need it, not in whatever shape our software exports
  • Fixed fee in writing — agreed before the work starts, with the delivery date included

Timing

When this work actually happens

Conversion is planned backwards from your group reporting deadline, not from the China filing date.

Before the year end

Agree the differences that will need adjusting, so the books are kept in a way that makes the conversion cheap.

During the audit

The reconciliation is prepared alongside the statutory audit rather than after it, so nothing is reconciled twice.

At your group deadline

The pack delivered in your format, ready to consolidate, with the audit evidence behind each adjustment.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Reporting pack in your format

Trial balance, financial statements and disclosures, in the format and chart of accounts your consolidation needs.

Equity and profit reconciliation

Line by line, from PRC GAAP to your reporting basis, with every adjustment evidenced.

Adjusting journal entries

The entries themselves, ready to post, with the reasoning attached to each.

Accounting policies memo

English memo covering the policies applied and the judgements made.

Audit support file

The working papers behind each adjustment, so your group auditor does not have to ask twice.

Interim version

Available for your half-year or quarterly close, not just the year end.

Also worth knowing

Related work

Statutory annual audit

The audit this work builds on. Doing both together is materially cheaper than doing them separately.

CIT annual settlement

The tax side of the same year end, due 31 May.

Cross-border due diligence

If you are acquiring rather than operating, and need the China numbers verified first.

Indicative fee

Price it yourself before you talk to us

Put in your revenue or total assets and tick what you need. The number that comes out is the fixed fee we quote — on the published fee scale, not a figure invented per enquiry.

Priced on whichever is larger — the same basis the fee scale uses.

Enter your revenue or total assets above and the price appears here.

Fee bands

The scale, out in the open

The standard fee comes off the published progressive scale (Yue Jia [2011] No.308); the band is set by your annual revenue or your total assets, whichever is larger. Our fee is the standard fee after the firm discount, with the English and Chinese bilingual reports and the filing included.

Revenue or total assetsStandard feeOur fee

Standard service. Expedited service, two working days instead of five, adds 30%. Above RMB 1bn, or where the affairs are unusually complex, we quote in writing. Indicative only — the written quote governs.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about the conversion

Can you work directly with our group auditor?

Yes, and it is the part clients tell us saves them the most time. We answer their questions in English and send the working papers, rather than routing everything through you.

Is this a separate audit?

No. It is prepared alongside the statutory audit, using the same fieldwork. That is why it costs a fraction of the audit rather than the same again.

What if our group uses US GAAP rather than IFRS?

The same approach applies. Tell us the basis and we work to it.

Do you sign anything for our group auditor?

We provide the reconciliation and supporting evidence. Whether your group auditor needs anything signed depends on their own procedures, and we will comply with whatever they ask.

How long does it take?

Prepared alongside the audit, it adds a few days rather than weeks. Done after the fact, from closed books it was never designed around, it takes considerably longer.

Send us your group reporting template.

Tell us the reporting basis and the group deadline. You will get a written scope, a fixed fee and a delivery date within one business day.