The Chinese Institute of Certified Public
Accountants (CICPA) has published guidance for accounting firms
that are engaged in mergers.

The guidance comprises three parts: the
compliance basis and principles, the procedures for the negotiation
of mergers, and procedures for changes of merger.

The guidance has two main aims:

  • To prompt the accounting firms to pay attention to the
    implementation of legal procedures during the merger process;
    and,
  • To avoid conflicts caused by unclear or inadequate legal
    procedures, reducing risks and costs for mergers of accounting
    firms.

CICPA hopes the guidance will help Chinese
firms consolidate, resulting in stronger and more competitive
accounting firms.