DOI: 10.36347/sjebm.2016.v03i03.005

Pages: 128-130

The purpose of this short communication is to identify the particularities of accounting for NFP agency transactions in China compared with the U.K. and the U.S. An additional purpose is to find insightful examples of NFP agency transactions in order to consider correct practices. This short communication relies on the accounting standards of three countries as well as Chinese academic literature. In China, NFPs must recognize agency assets and agency liabilities in a manner different from the U.K. and the U.S. Some of the differences in accounting for agency transactions between the three countries are due to the difference in the degree of importance the regulators in each country place on liabilities. The differences in control over agency assets are also a source of difference for accounting practices. Consideration of accounting for NFPs in China will help other Asian countries to establish or improve their accounting regulations for NFPs.