Article 80 The financial and accounting systems of a joint venture shall be instituted in accordance with China's relevant laws and procedures on financial affairs and accounting， and in consideration of the conditions of the joint venture， and then be filed with the local financial departments and tax authorities for the record.

　　Article 81 A joint venture shall employ a chief accountant to assist the general manager in handling the financial affairs of the enterprises. If necessary， a deputy chief accountant may be appointed.

　　Article 82 A joint venture shall （unless it is a small venture） appoint an auditor to be responsible for checking financial receipts， payments and accounts， and to submit reports to the board of directors and the general manager.

　　Article 83 The fiscal year of a joint venture shall coincide with the calendar year， i.e. from January 1 to December 31 on the Gregorian calendar.

　　Article 84 The accounting of a joint venture shall adopt the internationally used accrual basis and debit and credit accounting system in their work. All vouchers， account books， statistic statements and reports prepared by the enterprise shall be written in Chinese， or concurrently in a foreign language agreed upon by the parties.

　　Article 85 Joint ventures shall， in principle， adopt Renminbi as the standard accounting currency， however， a foreign currency may also be used as the standard accounting currency， if so agreed upon by the parties concerned.

　　Article 86 In addition to the use of a standard accounting currency， joint ventures shall record accounts in currencies actually used in payments and receipts， if such currencies in cash， bank deposits， funds of other currencies， assets and liabilities， gains， expenses， etc. are inconsistent with the standard accounting currency.

　　Joint ventures using a foreign currency in accounting shall work out a statement of accounts in Renminbi equivalents in addition to those in the foreign currency. Losses or gains in remittances resulting from differences in exchange rates shall be recorded as current gains or losses for the year in which they occur. No adjustments shall be made to a balance in a foreign currency account as the result of a recorded fluctuation in the exchange rate such a currency.

　　Article 87 Principles of profit distribution after payment of taxes in accordance with the Income Tax Law of the People's Republic of China Concerning Chinese-Foreign Equity Joint Ventures are as follows：

　　（1） Allocations for reserve funds， bonuses and welfare funds for staff and workers and expansion funds of the joint venture. The proportion of allocations is to be decided by the board of directors.

　　（2） Reserve funds which can be used to make up for the losses of the joint venture， or with the consent of the examining and approving authorities， to increase the joint venture's capital for the expansion of production.

　　（3） After the funds specified in （1） of this Article have been deducted and if the board of directors decides to distribute the remaining profit， it shall be distributed proportionately to each party's investment.

　　Article 88 Profits may not be distributed before the losses of the previous year have been made up. Remaining profits from previous year （or years） may be distributed together with those of the current year.

　　Article 89 A joint venture shall submit quarterly and annual fiscal reports to parties to the joint venture， the local tax authority， department in charge of the joint venture and the financial department at the same level to those departments.

　　A copy of the annual fiscal report shall be submitted to the original examining and approving authorities.

　　Article 90 Only after being examined and certified by an accountant registered in China shall the following documents， certificates and reports be considered valid：

　　（1） certificates of investment from all the parties to a joint venture （lists of assessed value agreed upon and signed by the parties to the joint venture and relevant written agreements shall be attached if investment involves materials， site use rights， industrial property and proprietary technology）；

　　（2） annual fiscal reports of the joint venture；

　　（3） fiscal reports on liquidation of the joint venture.