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Replies from the Accounting Department of the Ministry of Finance about the Transition between the Previous and New Administrative Measures for the Qualifications of Accounting Practitioners
The Ministry of Finance of the People’s Republic of China published the Administrative Measures for the Qualification of Accounting Practitioners (Order of the Ministry of Finance No. 73, "Order No. 73", or the New Measures) on December 10, 2012. It came into force on July 1, 2013, and the original Administrative Measures for the Qualification of Accounting Practitioners (Order of the Ministry of Finance No. 26, "Order No. 26", or the Previous Measures) shall be annulled simultaneously. To ensure the effective implementation of Order No. 73 and a smooth transition between the Previous and New Measures, the Ministry of Finance published the Provisions on Transition between the Previous and New Administrative Measures on Accounting Qualification (“Provisions on Transition”) on March 11, 2013. Recently, the official from the accounting department of the Ministry of Finance answered the questions from journalists on the enacting and publishing of the “Provision on Transition”.
Q: Can you share with us about the background and the procedure for enacting the Provision on Transition?
A: The amendment to Order No. 26 is of great significance to the administration of the occupational qualifications of accountants. This amendment was made to meet the urgent needs in the new situation and helps reinforce basic accounting system. Order No.73, the amended version, makes many adjustments and improvements in line with the trends in the administration of the occupational qualifications of accountants. For example computer-based tests shall be conducted for all subjects, applicants may pass all the subjects at one time, the procedure is simplified for applying for and obtaining accounting qualification certificates (“AQC”), and practitioners are required to update their AQC every six years. Some of the adjustments involve Accounting Professional Qualification Exams_(APQE) takers and accounting practitioners, and others involve accounting practitioner qualification institutions (the “administrative organ”). Therefore, in enacting and publishing the Provisions on Transition and offering a detailed explanation of that, we follow the principle of “people first” and we aim to provide them with better service. This shows the work ethics of a service-oriented government by which administrative organs will better fulfill their duties and better protect the interests of applicants taking the examinationand accounting practitioners.
The Ministry of Finance highly values the Provisions on Transition. When we tried to amend Order No.26, we have already started researching on the questions and looking for solutions for the problems arising from and during the transition between previous and new policies. After Order No.73 was published, we immediately published and distributed the greenish draft and invited comments and advices nationwide concerning the transition between previous and new policies. Upon receiving the feedbacks and advices, we organized a careful analysis on them and made some adjustments accordingly. Later on, we invited some front-line people from some provinces and cities who are responsible for the administration of the occupational qualifications of accountants to a forum where they had in-depth discussions about every part of the Provisions on Transition. After we reached an agreement, we submitted the result to the leader of our department for approval.
Q: With regard to APQE, some provisions of Order No. 73 are different from Order No. 26. What should the administrative organs and applicants focus on during the transition?
A: With regard to the examination policy, Order No. 73 is different from Order No. 26 in the following two aspects: first, it emphasizes that all tests should be completed on the computer-based testing system and a computer-based test bank has been established by the Ministry of Finance; second, it stipulates that all examinations should be passed at one time. During the transition from Order No. 26 to Order No. 73, two things will be done:
1. The development of the software for the computer-based testing shall be accelerated. In the early pilot computer-based examinations, most accounting administrative organs have built their own software systems and computer-based examinations have gone through test run. And only a handful of administrative organs haven’t started the pilot program. Those organs which have built and used the system should draw from the lessons and experience, rationalize the design of the system and optimize the system’s structure. Those that haven’t built the system should immediately arrange people to design and test run their system with a clear schedule and deadline. The Provisions on Transition stipulate that competent authorities should review and approve the software system and the test bank for their respective regions (departments or systems) by July 1, 2013 and ensure that the examination runs smoothly.
2. The transition period for the validity of qualifying result of any exam subject is defined. There was no provision on how applicants may take the exam and how long the qualifying result of any exam subject was valid were not defined under Order No. 26. In fact, such provisions vary in different regions (departments or systems) with different requirements. For example, in some areas, applicants may take an individual test, and the valid period is as long as two years. Under Order No. 73, all subjects should be passed “at one time”, which means applicants shall take all three APQE subjects at one time, and shall pass all the subjects within the same period, and the qualifying result of any single subject will not be valid in the next examination period if the applicant fails two other subjects. Since the Order No. 73 is going to take effect, we need to address the issues of transition between the Previous and New Measures especially regarding the qualifying results which are still valid. There are still many applicants with such results in some areas, so the transition period won’t be very short. Therefore, the Provisions on Transition state that the areas mentioned above could formulate their transitional policies concerning the validity deadline according to their own situations. Applicants with qualifying results could apply to take the unqualified subjects only before the deadline which shall not be later than December 13, 2014. Applicants with qualifying results shall take the examination of the rest subjects before the transition period deadline in their respective regions (departments or systems).
Q: Compared with Order No. 26, Order No. 73 is simplified concerning the issuance of the AQC. How should the accounting administrative organ and accountants understand this simplification?
A: About the issuance of AQC, Order No. 73 has three new regulations as follows:
1. The time for obtaining AQC is clearly specified;
2. The procedure for obtaining AQC is simplified; and
3. AQC should be renewed every 6 years. Therefore, in the transition period from Order No. 26 to Order No. 73, the accounting administrative organs and accountants shall pay attention to the following three aspects:
1. Order No. 26 does not specify the deadline for the applicants who have passed the APQE to obtain their AQC. As a result, some administrative organs have a deadline and some do not. Those who have passed all examination subjects but have not yet obtained their AQC shall be carefully handled after Order No. 73 takes effect which specifies the deadline for qualifying applicants to obtain their AQC. To solve this problem, the Provisions on transition map out two solutions: 1. If any administrative organ has already set a deadline for claiming AQC, those who have passed the APQE shall obtain their AQC by the deadline; 2. If the administrative organ does not specify any deadline, the qualifying applicants shall retrieve their AQC by December 31, 2013.
2. Under the principle of “people first” and “better services”, Order No. 73 simplifies the procedure to obtain AQC by the following two approaches: First, Order No. 73 provides that qualifying applicants shall claim their AQC at designated address with their valid original identity cards before the deadline. It is no longer compulsory to fill out the Form of Application to Obtain the Accounting Qualification Certificate. Second, to ensure that the information of the AQC holders in the accounting archive system is accurate, the Provisions on transition provide that the administrative organs may require the AQC holders to fill out information sheets such as the Profile of the AQC Holders, to record and update their practicing archive information. The AQC holders shall then comply with such requirements.
3. Order No. 73 includes a new provision that AQC should be renewed every six years. The deadline, documentations and procedures of renewal are made explicit under the provision. This new provision is aimed at updating accounting archives timely since the turnover of accountants is high between different regions. However, Order No. 26 did not include any specific provision on AQC renewal or its expiration period, resulting in varying practices in different regions (departments or systems). Considering this reality and better accounting information management, the Provisions on Transition provide that administrative organs shall define a renewal deadline according to their own situations:
- Those who obtained AQC before July 1, 2013 shall renew their AQC before the deadline set by the administrative organs for their regions, departments or systems; and this renewal date shall be no later than July 1, 2019;
- Those who’s AQC shall be issued on or after July 1, 2013 shall act in accordance with Order No. 73 to renew their AQC every six years before a deadline set by the administrative organs for their respective regions (departments or systems).
Accountants shall renew their AQC according to the regulations of the administrative organs in their respective regions (departments or systems).
Q: In order to enhance the management of AQC holder information, Order No. 73 stresses that a comprehensive information system must be put in place. What should the administrative organ focus on to ensure a smooth transition from Order No.26 to Order No.73?
A: Order No.73 pays close attention to the management of AQC holder information and calls for an online archival information system. To ensure a smooth transition from Order No.26 to Order No.73, administrative organs shall focus on three aspects as follows:
1. They shall accelerate the development of an AQC holder information management system. With a view to regulating the inter-provincial and inter-departmental transfer of accounting practitioners’ qualifications and uploading relevant paper-based documentations into the information database, administrative organs have developed their information management systems following the instructions of the Ministry of Finance, and an online information system for inter-provincial transfer has taken shape. After the issuance of Order No.73, administrative organs shall take local conditions into account, draw upon the past experience, improve the current system and strive to establish a complete and comprehensive AQC holder information management system by July 1, 2013.
2. They shall improve the AQC holder archive. Under Order No.73, administrative organs shall improve the AQC holder archive and upload their basic information to the online system by July 1, 2013. They shall ensure the authenticity, integrity and accuracy of the uploaded information and update the information on a regular basis. In the meantime, they shall determine how the entry “Beginning of Accounting Career” should be filled in according to local conditions. Normally, the “Beginning of Accounting Career” shall not be earlier than the date of graduation from full-time schools and cannot be modified at random.
3. They shall accelerate the development of support websites for accounting practitioners. In response to the call to build a service-oriented government, administrative organs shall provide online support for accounting practitioners from July 1, 2013 according to Order No. 73, and the websites shall contain such features as online information index, information modification and service appointment. To index any basic information, applicants shall at least enter their names and ID numbers. The information to be indexed shall include the name, sex, photo, the original date of issuance and the renewal date of AQC, the name of the administrative organs where their AQCs were issued, information about their continuing education and information about the rewards and punishment given to them and so forth. Information of AQC holders who have gone through the transfer-out procedures shall remain in the original information system and can only be deleted or transferred to the reference database until the transfer-in procedures are completed.
Q: Article 36 of Order No. 73 is relevant to some practicing accountants who possess some accounting knowledge and skills that meet the requirements of accounting practitioner qualification, but have not obtained any AQC for some reasons. How should the administrative organs and relevant accountants understand this article?
A: In reality, some people have practiced accounting as they possess enough accounting knowledge and skills which may meet and even surpass the requirements of accounting practitioner qualification, but have not obtained any AQC for various reasons. To solve this legacy problem, the No.73 Order sets out provisions on the basis of relevant laws and regulations. When implementing the new order, administrative organs and relevant accountants shall focus on the followings provisions:
1. Any people who have won the title as Senior Accountant by July 1, 2013, have been 50 years old and are still engaged in the accounting job may apply to the administrative organs for the accounting practitioner qualification. For this purpose they should submit the documents as follows: Senior Accountant Qualification Certificate or the credential document to the same effect issued by pertinent qualification authorities and registered with the provincial human resource authority or the Ministry of Human Resources and Social Security (formerly the Ministry of Personnel); and original document of employment as senior accountant from the current employer and a photocopy of the document carrying the stamp of the human resources department of the employer. Applicants will obtain AQC after the administrative organ verifies the accuracy of the above-said documents.
2. Any people who have practiced as an accountant for over 20 years by July 1, 2013, have been 50 years old and are still engaged in accounting job may apply to the administrative organs for the accounting practitioner qualification submitting the documents as follows: accounting vouchers, accounting books and accounting reports over the past 20 years carrying the signature of the applicant, or other credentials recognized by the provincial finance department or the Finance Bureau of Xinjiang Production and Construction Corps. Applicants will obtain AQC after administrative organ verifies the accuracy of the said documents.
3. Any people who have obtained a CPA certificate and currently practice as accountants may apply for AQC, but they should provide the administrative organ with a certificate issued by the employer. And the AQC will be issued after the said CPA certificate is verified through the CPA inquiry system on www.acc.gov.cn by the provincial finance departments or the Finance Bureau of Xinjiang Production and Construction Corps.
The above applicants should produce complete documentations in accordance with related rules so as to obtain their AQC without any delay.
Q: What specific requirements are there for administrative organs for implementing the Provisions on Transition?
A: The administrative organs are mainly responsible for implementing the Provisions, and they are directly involved with the interests of APQE takers and accounting practitioners. To ensure the Provisions are implemented thoroughly and in the right way, administrative organs should focus more on the following four aspects:
1. They should study and try to fully understand the Provisions. The Provisions have clear stipulations on specific issues such as the AQC examination and takers, the issuance of AQC, AQC holder information management and examination exemption. The administrative organs should organize their staff to study the Provisions and to fully and exactly understand the Provisions. This will be the basis for implementing the Provisions.
2. Proper measures should be made to create necessary institutional support. The Provisions require that administrative organs formulate proper policies to address issues such as the validity of any qualifying test result, the renewal of AQC, and the Beginning of Accounting Career. Such policies should be based on relevant laws and regulations and the real conditions, and be adopted through researches and overall considerations. These policies will form an institutional support for the implementation of the Provisions.
3. An online system should be put in place to provide technical support. The Provisions have made explicit requirements for the development of a computer-based (paperless) examination system, an AQC holder information management system, an AQC archive, and a support website for practicing accountants. Administrative organs shall cover the development of these systems with budgetary resources, scientifically improve the system design, and continuously optimize the performance of these systems. They will form a solid support for the implementation of Order No. 73 and the Provisions.
4. Competent staff shall be assigned to provide effective services. Ultimately, the implementation of Order No. 73 and the Provisions depend on people. Administrative organs shall arrange a competent team, define jobs and duties scientifically, refine the workflow, and designate responsible officials, to ensure the thorough and proper implementation of every provision. Letters and calls from APQE takers and accounting practitioners shall be answered by a designated official. And the officials should help the applicants and accounting practitioners to solve their problems and facilitate their understanding through cordial and careful services.
A: About the issuance of AQC, Order No. 73 has three new regulations as follows:
1. The time for obtaining AQC is clearly specified;
2. The procedure for obtaining AQC is simplified; and
3. AQC should be renewed every 6 years. Therefore, in the transition period from Order No. 26 to Order No. 73, the accounting administrative organs and accountants shall pay attention to the following three aspects:
1. Order No. 26 does not specify the deadline for the applicants who have passed the APQE to obtain their AQC. As a result, some administrative organs have a deadline and some do not. Those who have passed all examination subjects but have not yet obtained their AQC shall be carefully handled after Order No. 73 takes effect which specifies the deadline for qualifying applicants to obtain their AQC. To solve this problem, the Provisions on transition map out two solutions: 1. If any administrative organ has already set a deadline for claiming AQC, those who have passed the APQE shall obtain their AQC by the deadline; 2. If the administrative organ does not specify any deadline, the qualifying applicants shall retrieve their AQC by December 31, 2013.
2. Under the principle of “people first” and “better services”, Order No. 73 simplifies the procedure to obtain AQC by the following two approaches: First, Order No. 73 provides that qualifying applicants shall claim their AQC at designated address with their valid original identity cards before the deadline. It is no longer compulsory to fill out the Form of Application to Obtain the Accounting Qualification Certificate. Second, to ensure that the information of the AQC holders in the accounting archive system is accurate, the Provisions on transition provide that the administrative organs may require the AQC holders to fill out information sheets such as the Profile of the AQC Holders, to record and update their practicing archive information. The AQC holders shall then comply with such requirements.
3. Order No. 73 includes a new provision that AQC should be renewed every six years. The deadline, documentations and procedures of renewal are made explicit under the provision. This new provision is aimed at updating accounting archives timely since the turnover of accountants is high between different regions. However, Order No. 26 did not include any specific provision on AQC renewal or its expiration period, resulting in varying practices in different regions (departments or systems). Considering this reality and better accounting information management, the Provisions on Transition provide that administrative organs shall define a renewal deadline according to their own situations:
- Those who obtained AQC before July 1, 2013 shall renew their AQC before the deadline set by the administrative organs for their regions, departments or systems; and this renewal date shall be no later than July 1, 2019;
- Those who’s AQC shall be issued on or after July 1, 2013 shall act in accordance with Order No. 73 to renew their AQC every six years before a deadline set by the administrative organs for their respective regions (departments or systems).
Accountants shall renew their AQC according to the regulations of the administrative organs in their respective regions (departments or systems).
Q: In order to enhance the management of AQC holder information, Order No. 73 stresses that a comprehensive information system must be put in place. What should the administrative organ focus on to ensure a smooth transition from Order No.26 to Order No.73?
A: Order No.73 pays close attention to the management of AQC holder information and calls for an online archival information system. To ensure a smooth transition from Order No.26 to Order No.73, administrative organs shall focus on three aspects as follows:
1. They shall accelerate the development of an AQC holder information management system. With a view to regulating the inter-provincial and inter-departmental transfer of accounting practitioners’ qualifications and uploading relevant paper-based documentations into the information database, administrative organs have developed their information management systems following the instructions of the Ministry of Finance, and an online information system for inter-provincial transfer has taken shape. After the issuance of Order No.73, administrative organs shall take local conditions into account, draw upon the past experience, improve the current system and strive to establish a complete and comprehensive AQC holder information management system by July 1, 2013.
2. They shall improve the AQC holder archive. Under Order No.73, administrative organs shall improve the AQC holder archive and upload their basic information to the online system by July 1, 2013. They shall ensure the authenticity, integrity and accuracy of the uploaded information and update the information on a regular basis. In the meantime, they shall determine how the entry “Beginning of Accounting Career” should be filled in according to local conditions. Normally, the “Beginning of Accounting Career” shall not be earlier than the date of graduation from full-time schools and cannot be modified at random.
3. They shall accelerate the development of support websites for accounting practitioners. In response to the call to build a service-oriented government, administrative organs shall provide online support for accounting practitioners from July 1, 2013 according to Order No. 73, and the websites shall contain such features as online information index, information modification and service appointment. To index any basic information, applicants shall at least enter their names and ID numbers. The information to be indexed shall include the name, sex, photo, the original date of issuance and the renewal date of AQC, the name of the administrative organs where their AQCs were issued, information about their continuing education and information about the rewards and punishment given to them and so forth. Information of AQC holders who have gone through the transfer-out procedures shall remain in the original information system and can only be deleted or transferred to the reference database until the transfer-in procedures are completed.
Q: Article 36 of Order No. 73 is relevant to some practicing accountants who possess some accounting knowledge and skills that meet the requirements of accounting practitioner qualification, but have not obtained any AQC for some reasons. How should the administrative organs and relevant accountants understand this article?
A: In reality, some people have practiced accounting as they possess enough accounting knowledge and skills which may meet and even surpass the requirements of accounting practitioner qualification, but have not obtained any AQC for various reasons. To solve this legacy problem, the No.73 Order sets out provisions on the basis of relevant laws and regulations. When implementing the new order, administrative organs and relevant accountants shall focus on the followings provisions:
1. Any people who have won the title as Senior Accountant by July 1, 2013, have been 50 years old and are still engaged in the accounting job may apply to the administrative organs for the accounting practitioner qualification. For this purpose they should submit the documents as follows: Senior Accountant Qualification Certificate or the credential document to the same effect issued by pertinent qualification authorities and registered with the provincial human resource authority or the Ministry of Human Resources and Social Security (formerly the Ministry of Personnel); and original document of employment as senior accountant from the current employer and a photocopy of the document carrying the stamp of the human resources department of the employer. Applicants will obtain AQC after the administrative organ verifies the accuracy of the above-said documents.
2. Any people who have practiced as an accountant for over 20 years by July 1, 2013, have been 50 years old and are still engaged in accounting job may apply to the administrative organs for the accounting practitioner qualification submitting the documents as follows: accounting vouchers, accounting books and accounting reports over the past 20 years carrying the signature of the applicant, or other credentials recognized by the provincial finance department or the Finance Bureau of Xinjiang Production and Construction Corps. Applicants will obtain AQC after administrative organ verifies the accuracy of the said documents.
3. Any people who have obtained a CPA certificate and currently practice as accountants may apply for AQC, but they should provide the administrative organ with a certificate issued by the employer. And the AQC will be issued after the said CPA certificate is verified through the CPA inquiry system on www.acc.gov.cn by the provincial finance departments or the Finance Bureau of Xinjiang Production and Construction Corps.
The above applicants should produce complete documentations in accordance with related rules so as to obtain their AQC without any delay.
Q: What specific requirements are there for administrative organs for implementing the Provisions on Transition?
A: The administrative organs are mainly responsible for implementing the Provisions, and they are directly involved with the interests of APQE takers and accounting practitioners. To ensure the Provisions are implemented thoroughly and in the right way, administrative organs should focus more on the following four aspects:
1. They should study and try to fully understand the Provisions. The Provisions have clear stipulations on specific issues such as the AQC examination and takers, the issuance of AQC, AQC holder information management and examination exemption. The administrative organs should organize their staff to study the Provisions and to fully and exactly understand the Provisions. This will be the basis for implementing the Provisions.
2. Proper measures should be made to create necessary institutional support. The Provisions require that administrative organs formulate proper policies to address issues such as the validity of any qualifying test result, the renewal of AQC, and the Beginning of Accounting Career. Such policies should be based on relevant laws and regulations and the real conditions, and be adopted through researches and overall considerations. These policies will form an institutional support for the implementation of the Provisions.
3. An online system should be put in place to provide technical support. The Provisions have made explicit requirements for the development of a computer-based (paperless) examination system, an AQC holder information management system, an AQC archive, and a support website for practicing accountants. Administrative organs shall cover the development of these systems with budgetary resources, scientifically improve the system design, and continuously optimize the performance of these systems. They will form a solid support for the implementation of Order No. 73 and the Provisions.
4. Competent staff shall be assigned to provide effective services. Ultimately, the implementation of Order No. 73 and the Provisions depend on people. Administrative organs shall arrange a competent team, define jobs and duties scientifically, refine the workflow, and designate responsible officials, to ensure the thorough and proper implementation of every provision. Letters and calls from APQE takers and accounting practitioners shall be answered by a designated official. And the officials should help the applicants and accounting practitioners to solve their problems and facilitate their understanding through cordial and careful services.
Q: Can you share with us about the background and the procedure for enacting the Provision on Transition?
A: The amendment to Order No. 26 is of great significance to the administration of the occupational qualifications of accountants. This amendment was made to meet the urgent needs in the new situation and helps reinforce basic accounting system. Order No.73, the amended version, makes many adjustments and improvements in line with the trends in the administration of the occupational qualifications of accountants. For example computer-based tests shall be conducted for all subjects, applicants may pass all the subjects at one time, the procedure is simplified for applying for and obtaining accounting qualification certificates (“AQC”), and practitioners are required to update their AQC every six years. Some of the adjustments involve Accounting Professional Qualification Exams_(APQE) takers and accounting practitioners, and others involve accounting practitioner qualification institutions (the “administrative organ”). Therefore, in enacting and publishing the Provisions on Transition and offering a detailed explanation of that, we follow the principle of “people first” and we aim to provide them with better service. This shows the work ethics of a service-oriented government by which administrative organs will better fulfill their duties and better protect the interests of applicants taking the examinationand accounting practitioners.
The Ministry of Finance highly values the Provisions on Transition. When we tried to amend Order No.26, we have already started researching on the questions and looking for solutions for the problems arising from and during the transition between previous and new policies. After Order No.73 was published, we immediately published and distributed the greenish draft and invited comments and advices nationwide concerning the transition between previous and new policies. Upon receiving the feedbacks and advices, we organized a careful analysis on them and made some adjustments accordingly. Later on, we invited some front-line people from some provinces and cities who are responsible for the administration of the occupational qualifications of accountants to a forum where they had in-depth discussions about every part of the Provisions on Transition. After we reached an agreement, we submitted the result to the leader of our department for approval.
Q: With regard to APQE, some provisions of Order No. 73 are different from Order No. 26. What should the administrative organs and applicants focus on during the transition?
A: With regard to the examination policy, Order No. 73 is different from Order No. 26 in the following two aspects: first, it emphasizes that all tests should be completed on the computer-based testing system and a computer-based test bank has been established by the Ministry of Finance; second, it stipulates that all examinations should be passed at one time. During the transition from Order No. 26 to Order No. 73, two things will be done:
1. The development of the software for the computer-based testing shall be accelerated. In the early pilot computer-based examinations, most accounting administrative organs have built their own software systems and computer-based examinations have gone through test run. And only a handful of administrative organs haven’t started the pilot program. Those organs which have built and used the system should draw from the lessons and experience, rationalize the design of the system and optimize the system’s structure. Those that haven’t built the system should immediately arrange people to design and test run their system with a clear schedule and deadline. The Provisions on Transition stipulate that competent authorities should review and approve the software system and the test bank for their respective regions (departments or systems) by July 1, 2013 and ensure that the examination runs smoothly.
2. The transition period for the validity of qualifying result of any exam subject is defined. There was no provision on how applicants may take the exam and how long the qualifying result of any exam subject was valid were not defined under Order No. 26. In fact, such provisions vary in different regions (departments or systems) with different requirements. For example, in some areas, applicants may take an individual test, and the valid period is as long as two years. Under Order No. 73, all subjects should be passed “at one time”, which means applicants shall take all three APQE subjects at one time, and shall pass all the subjects within the same period, and the qualifying result of any single subject will not be valid in the next examination period if the applicant fails two other subjects. Since the Order No. 73 is going to take effect, we need to address the issues of transition between the Previous and New Measures especially regarding the qualifying results which are still valid. There are still many applicants with such results in some areas, so the transition period won’t be very short. Therefore, the Provisions on Transition state that the areas mentioned above could formulate their transitional policies concerning the validity deadline according to their own situations. Applicants with qualifying results could apply to take the unqualified subjects only before the deadline which shall not be later than December 13, 2014. Applicants with qualifying results shall take the examination of the rest subjects before the transition period deadline in their respective regions (departments or systems).
Q: Compared with Order No. 26, Order No. 73 is simplified concerning the issuance of the AQC. How should the accounting administrative organ and accountants understand this simplification?
A: About the issuance of AQC, Order No. 73 has three new regulations as follows:
1. The time for obtaining AQC is clearly specified;
2. The procedure for obtaining AQC is simplified; and
3. AQC should be renewed every 6 years. Therefore, in the transition period from Order No. 26 to Order No. 73, the accounting administrative organs and accountants shall pay attention to the following three aspects:
1. Order No. 26 does not specify the deadline for the applicants who have passed the APQE to obtain their AQC. As a result, some administrative organs have a deadline and some do not. Those who have passed all examination subjects but have not yet obtained their AQC shall be carefully handled after Order No. 73 takes effect which specifies the deadline for qualifying applicants to obtain their AQC. To solve this problem, the Provisions on transition map out two solutions: 1. If any administrative organ has already set a deadline for claiming AQC, those who have passed the APQE shall obtain their AQC by the deadline; 2. If the administrative organ does not specify any deadline, the qualifying applicants shall retrieve their AQC by December 31, 2013.
2. Under the principle of “people first” and “better services”, Order No. 73 simplifies the procedure to obtain AQC by the following two approaches: First, Order No. 73 provides that qualifying applicants shall claim their AQC at designated address with their valid original identity cards before the deadline. It is no longer compulsory to fill out the Form of Application to Obtain the Accounting Qualification Certificate. Second, to ensure that the information of the AQC holders in the accounting archive system is accurate, the Provisions on transition provide that the administrative organs may require the AQC holders to fill out information sheets such as the Profile of the AQC Holders, to record and update their practicing archive information. The AQC holders shall then comply with such requirements.
3. Order No. 73 includes a new provision that AQC should be renewed every six years. The deadline, documentations and procedures of renewal are made explicit under the provision. This new provision is aimed at updating accounting archives timely since the turnover of accountants is high between different regions. However, Order No. 26 did not include any specific provision on AQC renewal or its expiration period, resulting in varying practices in different regions (departments or systems). Considering this reality and better accounting information management, the Provisions on Transition provide that administrative organs shall define a renewal deadline according to their own situations:
- Those who obtained AQC before July 1, 2013 shall renew their AQC before the deadline set by the administrative organs for their regions, departments or systems; and this renewal date shall be no later than July 1, 2019;
- Those who’s AQC shall be issued on or after July 1, 2013 shall act in accordance with Order No. 73 to renew their AQC every six years before a deadline set by the administrative organs for their respective regions (departments or systems).
Accountants shall renew their AQC according to the regulations of the administrative organs in their respective regions (departments or systems).
Q: In order to enhance the management of AQC holder information, Order No. 73 stresses that a comprehensive information system must be put in place. What should the administrative organ focus on to ensure a smooth transition from Order No.26 to Order No.73?
A: Order No.73 pays close attention to the management of AQC holder information and calls for an online archival information system. To ensure a smooth transition from Order No.26 to Order No.73, administrative organs shall focus on three aspects as follows:
1. They shall accelerate the development of an AQC holder information management system. With a view to regulating the inter-provincial and inter-departmental transfer of accounting practitioners’ qualifications and uploading relevant paper-based documentations into the information database, administrative organs have developed their information management systems following the instructions of the Ministry of Finance, and an online information system for inter-provincial transfer has taken shape. After the issuance of Order No.73, administrative organs shall take local conditions into account, draw upon the past experience, improve the current system and strive to establish a complete and comprehensive AQC holder information management system by July 1, 2013.
2. They shall improve the AQC holder archive. Under Order No.73, administrative organs shall improve the AQC holder archive and upload their basic information to the online system by July 1, 2013. They shall ensure the authenticity, integrity and accuracy of the uploaded information and update the information on a regular basis. In the meantime, they shall determine how the entry “Beginning of Accounting Career” should be filled in according to local conditions. Normally, the “Beginning of Accounting Career” shall not be earlier than the date of graduation from full-time schools and cannot be modified at random.
3. They shall accelerate the development of support websites for accounting practitioners. In response to the call to build a service-oriented government, administrative organs shall provide online support for accounting practitioners from July 1, 2013 according to Order No. 73, and the websites shall contain such features as online information index, information modification and service appointment. To index any basic information, applicants shall at least enter their names and ID numbers. The information to be indexed shall include the name, sex, photo, the original date of issuance and the renewal date of AQC, the name of the administrative organs where their AQCs were issued, information about their continuing education and information about the rewards and punishment given to them and so forth. Information of AQC holders who have gone through the transfer-out procedures shall remain in the original information system and can only be deleted or transferred to the reference database until the transfer-in procedures are completed.
Q: Article 36 of Order No. 73 is relevant to some practicing accountants who possess some accounting knowledge and skills that meet the requirements of accounting practitioner qualification, but have not obtained any AQC for some reasons. How should the administrative organs and relevant accountants understand this article?
A: In reality, some people have practiced accounting as they possess enough accounting knowledge and skills which may meet and even surpass the requirements of accounting practitioner qualification, but have not obtained any AQC for various reasons. To solve this legacy problem, the No.73 Order sets out provisions on the basis of relevant laws and regulations. When implementing the new order, administrative organs and relevant accountants shall focus on the followings provisions:
1. Any people who have won the title as Senior Accountant by July 1, 2013, have been 50 years old and are still engaged in the accounting job may apply to the administrative organs for the accounting practitioner qualification. For this purpose they should submit the documents as follows: Senior Accountant Qualification Certificate or the credential document to the same effect issued by pertinent qualification authorities and registered with the provincial human resource authority or the Ministry of Human Resources and Social Security (formerly the Ministry of Personnel); and original document of employment as senior accountant from the current employer and a photocopy of the document carrying the stamp of the human resources department of the employer. Applicants will obtain AQC after the administrative organ verifies the accuracy of the above-said documents.
2. Any people who have practiced as an accountant for over 20 years by July 1, 2013, have been 50 years old and are still engaged in accounting job may apply to the administrative organs for the accounting practitioner qualification submitting the documents as follows: accounting vouchers, accounting books and accounting reports over the past 20 years carrying the signature of the applicant, or other credentials recognized by the provincial finance department or the Finance Bureau of Xinjiang Production and Construction Corps. Applicants will obtain AQC after administrative organ verifies the accuracy of the said documents.
3. Any people who have obtained a CPA certificate and currently practice as accountants may apply for AQC, but they should provide the administrative organ with a certificate issued by the employer. And the AQC will be issued after the said CPA certificate is verified through the CPA inquiry system on www.acc.gov.cn by the provincial finance departments or the Finance Bureau of Xinjiang Production and Construction Corps.
The above applicants should produce complete documentations in accordance with related rules so as to obtain their AQC without any delay.
Q: What specific requirements are there for administrative organs for implementing the Provisions on Transition?
A: The administrative organs are mainly responsible for implementing the Provisions, and they are directly involved with the interests of APQE takers and accounting practitioners. To ensure the Provisions are implemented thoroughly and in the right way, administrative organs should focus more on the following four aspects:
1. They should study and try to fully understand the Provisions. The Provisions have clear stipulations on specific issues such as the AQC examination and takers, the issuance of AQC, AQC holder information management and examination exemption. The administrative organs should organize their staff to study the Provisions and to fully and exactly understand the Provisions. This will be the basis for implementing the Provisions.
2. Proper measures should be made to create necessary institutional support. The Provisions require that administrative organs formulate proper policies to address issues such as the validity of any qualifying test result, the renewal of AQC, and the Beginning of Accounting Career. Such policies should be based on relevant laws and regulations and the real conditions, and be adopted through researches and overall considerations. These policies will form an institutional support for the implementation of the Provisions.
3. An online system should be put in place to provide technical support. The Provisions have made explicit requirements for the development of a computer-based (paperless) examination system, an AQC holder information management system, an AQC archive, and a support website for practicing accountants. Administrative organs shall cover the development of these systems with budgetary resources, scientifically improve the system design, and continuously optimize the performance of these systems. They will form a solid support for the implementation of Order No. 73 and the Provisions.
4. Competent staff shall be assigned to provide effective services. Ultimately, the implementation of Order No. 73 and the Provisions depend on people. Administrative organs shall arrange a competent team, define jobs and duties scientifically, refine the workflow, and designate responsible officials, to ensure the thorough and proper implementation of every provision. Letters and calls from APQE takers and accounting practitioners shall be answered by a designated official. And the officials should help the applicants and accounting practitioners to solve their problems and facilitate their understanding through cordial and careful services.
A: About the issuance of AQC, Order No. 73 has three new regulations as follows:
1. The time for obtaining AQC is clearly specified;
2. The procedure for obtaining AQC is simplified; and
3. AQC should be renewed every 6 years. Therefore, in the transition period from Order No. 26 to Order No. 73, the accounting administrative organs and accountants shall pay attention to the following three aspects:
1. Order No. 26 does not specify the deadline for the applicants who have passed the APQE to obtain their AQC. As a result, some administrative organs have a deadline and some do not. Those who have passed all examination subjects but have not yet obtained their AQC shall be carefully handled after Order No. 73 takes effect which specifies the deadline for qualifying applicants to obtain their AQC. To solve this problem, the Provisions on transition map out two solutions: 1. If any administrative organ has already set a deadline for claiming AQC, those who have passed the APQE shall obtain their AQC by the deadline; 2. If the administrative organ does not specify any deadline, the qualifying applicants shall retrieve their AQC by December 31, 2013.
2. Under the principle of “people first” and “better services”, Order No. 73 simplifies the procedure to obtain AQC by the following two approaches: First, Order No. 73 provides that qualifying applicants shall claim their AQC at designated address with their valid original identity cards before the deadline. It is no longer compulsory to fill out the Form of Application to Obtain the Accounting Qualification Certificate. Second, to ensure that the information of the AQC holders in the accounting archive system is accurate, the Provisions on transition provide that the administrative organs may require the AQC holders to fill out information sheets such as the Profile of the AQC Holders, to record and update their practicing archive information. The AQC holders shall then comply with such requirements.
3. Order No. 73 includes a new provision that AQC should be renewed every six years. The deadline, documentations and procedures of renewal are made explicit under the provision. This new provision is aimed at updating accounting archives timely since the turnover of accountants is high between different regions. However, Order No. 26 did not include any specific provision on AQC renewal or its expiration period, resulting in varying practices in different regions (departments or systems). Considering this reality and better accounting information management, the Provisions on Transition provide that administrative organs shall define a renewal deadline according to their own situations:
- Those who obtained AQC before July 1, 2013 shall renew their AQC before the deadline set by the administrative organs for their regions, departments or systems; and this renewal date shall be no later than July 1, 2019;
- Those who’s AQC shall be issued on or after July 1, 2013 shall act in accordance with Order No. 73 to renew their AQC every six years before a deadline set by the administrative organs for their respective regions (departments or systems).
Accountants shall renew their AQC according to the regulations of the administrative organs in their respective regions (departments or systems).
Q: In order to enhance the management of AQC holder information, Order No. 73 stresses that a comprehensive information system must be put in place. What should the administrative organ focus on to ensure a smooth transition from Order No.26 to Order No.73?
A: Order No.73 pays close attention to the management of AQC holder information and calls for an online archival information system. To ensure a smooth transition from Order No.26 to Order No.73, administrative organs shall focus on three aspects as follows:
1. They shall accelerate the development of an AQC holder information management system. With a view to regulating the inter-provincial and inter-departmental transfer of accounting practitioners’ qualifications and uploading relevant paper-based documentations into the information database, administrative organs have developed their information management systems following the instructions of the Ministry of Finance, and an online information system for inter-provincial transfer has taken shape. After the issuance of Order No.73, administrative organs shall take local conditions into account, draw upon the past experience, improve the current system and strive to establish a complete and comprehensive AQC holder information management system by July 1, 2013.
2. They shall improve the AQC holder archive. Under Order No.73, administrative organs shall improve the AQC holder archive and upload their basic information to the online system by July 1, 2013. They shall ensure the authenticity, integrity and accuracy of the uploaded information and update the information on a regular basis. In the meantime, they shall determine how the entry “Beginning of Accounting Career” should be filled in according to local conditions. Normally, the “Beginning of Accounting Career” shall not be earlier than the date of graduation from full-time schools and cannot be modified at random.
3. They shall accelerate the development of support websites for accounting practitioners. In response to the call to build a service-oriented government, administrative organs shall provide online support for accounting practitioners from July 1, 2013 according to Order No. 73, and the websites shall contain such features as online information index, information modification and service appointment. To index any basic information, applicants shall at least enter their names and ID numbers. The information to be indexed shall include the name, sex, photo, the original date of issuance and the renewal date of AQC, the name of the administrative organs where their AQCs were issued, information about their continuing education and information about the rewards and punishment given to them and so forth. Information of AQC holders who have gone through the transfer-out procedures shall remain in the original information system and can only be deleted or transferred to the reference database until the transfer-in procedures are completed.
Q: Article 36 of Order No. 73 is relevant to some practicing accountants who possess some accounting knowledge and skills that meet the requirements of accounting practitioner qualification, but have not obtained any AQC for some reasons. How should the administrative organs and relevant accountants understand this article?
A: In reality, some people have practiced accounting as they possess enough accounting knowledge and skills which may meet and even surpass the requirements of accounting practitioner qualification, but have not obtained any AQC for various reasons. To solve this legacy problem, the No.73 Order sets out provisions on the basis of relevant laws and regulations. When implementing the new order, administrative organs and relevant accountants shall focus on the followings provisions:
1. Any people who have won the title as Senior Accountant by July 1, 2013, have been 50 years old and are still engaged in the accounting job may apply to the administrative organs for the accounting practitioner qualification. For this purpose they should submit the documents as follows: Senior Accountant Qualification Certificate or the credential document to the same effect issued by pertinent qualification authorities and registered with the provincial human resource authority or the Ministry of Human Resources and Social Security (formerly the Ministry of Personnel); and original document of employment as senior accountant from the current employer and a photocopy of the document carrying the stamp of the human resources department of the employer. Applicants will obtain AQC after the administrative organ verifies the accuracy of the above-said documents.
2. Any people who have practiced as an accountant for over 20 years by July 1, 2013, have been 50 years old and are still engaged in accounting job may apply to the administrative organs for the accounting practitioner qualification submitting the documents as follows: accounting vouchers, accounting books and accounting reports over the past 20 years carrying the signature of the applicant, or other credentials recognized by the provincial finance department or the Finance Bureau of Xinjiang Production and Construction Corps. Applicants will obtain AQC after administrative organ verifies the accuracy of the said documents.
3. Any people who have obtained a CPA certificate and currently practice as accountants may apply for AQC, but they should provide the administrative organ with a certificate issued by the employer. And the AQC will be issued after the said CPA certificate is verified through the CPA inquiry system on www.acc.gov.cn by the provincial finance departments or the Finance Bureau of Xinjiang Production and Construction Corps.
The above applicants should produce complete documentations in accordance with related rules so as to obtain their AQC without any delay.
Q: What specific requirements are there for administrative organs for implementing the Provisions on Transition?
A: The administrative organs are mainly responsible for implementing the Provisions, and they are directly involved with the interests of APQE takers and accounting practitioners. To ensure the Provisions are implemented thoroughly and in the right way, administrative organs should focus more on the following four aspects:
1. They should study and try to fully understand the Provisions. The Provisions have clear stipulations on specific issues such as the AQC examination and takers, the issuance of AQC, AQC holder information management and examination exemption. The administrative organs should organize their staff to study the Provisions and to fully and exactly understand the Provisions. This will be the basis for implementing the Provisions.
2. Proper measures should be made to create necessary institutional support. The Provisions require that administrative organs formulate proper policies to address issues such as the validity of any qualifying test result, the renewal of AQC, and the Beginning of Accounting Career. Such policies should be based on relevant laws and regulations and the real conditions, and be adopted through researches and overall considerations. These policies will form an institutional support for the implementation of the Provisions.
3. An online system should be put in place to provide technical support. The Provisions have made explicit requirements for the development of a computer-based (paperless) examination system, an AQC holder information management system, an AQC archive, and a support website for practicing accountants. Administrative organs shall cover the development of these systems with budgetary resources, scientifically improve the system design, and continuously optimize the performance of these systems. They will form a solid support for the implementation of Order No. 73 and the Provisions.
4. Competent staff shall be assigned to provide effective services. Ultimately, the implementation of Order No. 73 and the Provisions depend on people. Administrative organs shall arrange a competent team, define jobs and duties scientifically, refine the workflow, and designate responsible officials, to ensure the thorough and proper implementation of every provision. Letters and calls from APQE takers and accounting practitioners shall be answered by a designated official. And the officials should help the applicants and accounting practitioners to solve their problems and facilitate their understanding through cordial and careful services.