The Ministry of Finance ("MOF") has recently released final financial statements for six types of financial enterprises, including the Circular on Issuing the Final Financial Statements for (Banking) Financial Enterprises (the "Circular"), and meanwhile distributed the Circular on Matters Concerning Modifying the Completion of Flash Financial Reports for Financial Enterprises.
The Circular clearly sets out the constitution of this set of statements, requirements for the completion of statements, requirements for the submission of statements, examination of final financial statements of financial enterprises, etc. According to the Circular, among 19 parts constituting this set of statements are a cover, a balance sheet, a profit statement, a cash flow statement, a statement of changes in owners' equity, and a breakdown of assets impairment, and these statements shall be completed by banking financial enterprises within the territory of China, despite of their forms of ownership and organizational forms. In addition, the Circular states that, financial enterprises are required to submit to authorities of finance the information sheets about the value preservation and appreciation of (State-owned) capital, adding that absolutely State-owned holding and relatively State-owned holding financial enterprises shall report the rate of value preservation and appreciation of State-owned capital according to the owners' equity attributed to the State, while other financial enterprises shall, by reference to applicable provisions, report the rate of value preservation and appreciation of the owners' equity held by their own parent companies.