Starting 1 January 2001, all joint stock limited enterprises (“JSLEs”) were required to follow the System – except enterprises in banking, insurance, and other specialised financial industries.
When the System became effective on 1 January 2001, the old Accounting System for JSLEs was abolished. Starting from 2001, enterprises besides JSLEs have been encouraged to follow the System as well, with a proviso that State-owned enterprises should get approval in advance from relevant government authorities. In addition, if a parent company adopts the System, the parent should require all its subsidiaries to adopt the System as well.
