CAS 21 affects foreign invested enterprises in China and
their subsidiaries who are required to follow CAS.
The changes will have a significant impact particularly on
businesses involved in retail, property, shipping and
aviation.
China's efforts to more closely integrate its massive
economy and dynamic markets with the rest of the world's
remains an ongoing exercise. As the two become more closely linked,
efforts are underway to adapt China's Generally Accepted
Accounting Principles (GAAP)1, also known as Chinese
Accounting Standards (CAS), to global guidelines, such as the
International Financial Reporting Standard 16 (IFRS
16).2
When the International Accounting Standards Board's new
IFRS 16 rule became effective in January 2019, China followed
suit with CAS 21, which affects foreign invested enterprises (FIEs)
in China and their subsidiaries who are required to follow CAS. The
changes will have a significant impact on any business that uses
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