Decree No. 76 of China Ministry of Finance People's Republic of China - Decision of Changes on "Basic Standards for Business Enterprises Accounting Standards"

The decision made by Ministry of Finance to amend the Basic Standards of Accounting Standards for Business Enterprises has been considered and approved by the meeting of the Ministry of Finance, is hereby announced and starts to be implemented from the date of announcement -23 July 2014.

The main changes before and after modification:

Before modification
Article 42 Accounting measurement bases mainly comprise:

(e) Fair value: Assets and liabilities are carried at the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

After modification
(e) Fair value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.