China must ensure accounting rules for listed firms are implemented: MoF

SHANGHAI (AFX-ASIA) - China urgently needs to ensure its accounting rules for listed firms are implemented, Shenzhen's Securities Times quoted a senior official in the Ministry of Finance's accounting department as saying.

	    The official said there are systemic and historical reasons so many domestic listed companies publish falsified accounts, although the most important factor is a lack of supervision.

	    The official said the MoF has introduced an accounting system which is largely the same as international accounting standards, and it urgently needs implementing.

	    This is dependent on the government, intermediary units and listed companies themselves, while state bodies in the securities, auditing, 

taxation, banking and insurance sectors also have power to supervise and examine companies' results, the official added.

	    The official said the government will deliver administrative and legal punishment whenever accountants are caught preparing falsified financial reports for listed firms.

	    This may include cancelling the accountants' qualifications, imposing fines and holding the accountants legally responsible, the official said.

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