Article 163 A company shall establish its own financial and accounting systems in accordance with laws, administrative regulations and provisions of the financial department.
Article 164 A company shall prepare financial and accounting reports at the end of each fiscal year, which shall be audited by an accounting firm according to law. Financial and accounting reports shall be prepared in accordance with laws, administrative regulations and the provisions of the financial department.
Article 165 A limited liability company shall deliver financial and accounting reports to all shareholders within the time limit stipulated in the articles of association. The financial and accounting reports of a joint stock limited company shall be kept in the company 20 days before the annual meeting of the shareholders' meeting for shareholders' reference; A joint stock limited company that publicly issues shares must announce its financial and accounting reports.
Financial statements are accounting statements that reflect the capital and profits of enterprises or budget units in a certain period. The types, formats and reporting requirements of China's financial statements are stipulated by a unified accounting system, requiring enterprises to report regularly. At the end of the reporting period, state-owned industrial enterprises shall prepare the capital balance sheet, special fund and special appropriation table, capital statements such as infrastructure loans and special loans, income statements and product sales profit schedules, etc.; State-owned commercial enterprises shall submit a balance sheet of funds, a statement of operating conditions and a statement of special funds.
Financial statements include balance sheet, income statement, cash flow statement or statement of changes in financial position, schedules and notes. Financial statements are the main part of financial reports, excluding directors' reports, management analysis and financial statements, which are included in financial reports or annual reports.
The preparation of financial statements is basically achieved by collecting and sorting out the data recorded in daily accounting. In order to provide comparative information, each item in the balance sheet should be filled in the columns of "balance at the beginning of the year" and "balance at the end of the period". Among them, the figures of the items in the column of "balance at the beginning of the year" can be filled in according to the figures of the corresponding items in the column of "balance at the end of last year's balance sheet". If the names and contents of items specified in the balance sheet of this year are inconsistent with those of the previous year, the names and figures of items in the balance sheet at the end of last year shall be adjusted according to the provisions of this year.