CSRC issues the Accounting Supervision Report on the Annual Financial Report of Listed Companies in 2023.

On August 23, the China Securities Regulatory Commission (CSRC) released the Accounting Supervision Report on the Annual Financial Reports of Listed Companies for the year 2023. According to the disclosure, as of April 30, 2024, a total of 5,354 A-share listed companies have disclosed their 2023 annual financial reports, including 3,195 on the main board, 1,340 on the Growth Enterprise Market (GEM), 571 on the Sci-Tech Innovation Board, and 248 on the Beijing Stock Exchange. Among them, 4,228 companies made profits while 1,126 incurred losses. Among the companies that disclosed their annual financial reports on time, 209 companies received audit reports with non-standard audit opinions, including 29 with disclaimers of opinion, 85 with qualified opinions, and 95 with unqualified opinions with explanatory paragraphs. The CSRC organized special teams to conduct random reviews of the 2023 annual financial reports of listed companies and compiled the "Accounting Supervision Report on the Annual Financial Reports of Listed Companies for the Year 2023". Overall, listed companies were able to adhere to accounting standards and financial disclosure rules, but some companies still had accounting treatment or financial disclosure errors in areas such as revenue, long-term equity investments and business combinations, financial instruments, impairment of assets, income tax, and non-recurring gains and losses. In response to these issues, the CSRC will continue to do the following: 1) review and follow up on the problems identified in the reviewed listed companies, and take regulatory measures as required; 2) hold annual accounting supervision coordination meetings to address typical issues identified in regulatory work and unify regulatory standards; 3) closely monitor accounting treatment issues related to market hotspots and difficulties, provide practical guidance through case studies, and enhance the consistency and effectiveness of adhering to accounting standards and financial disclosure rules in the capital market. Listed companies, accounting firms, and other intermediary institutions should pay close attention to the issues raised in the accounting supervision report, correct any errors in their financial reports in a timely manner, enhance their understanding and application of accounting standards and financial disclosure rules, prudently handle financial information disclosure related to listed companies, continuously improve the quality of accounting information disclosure, and promote high-quality development of the capital market. This article is compiled from the official WeChat account of the CSRC. Editor: Liu Jiayin.