Since adopting market reforms in 1978, China has been among the world's fastest growing economies. This has led to dramatic developments in America's commercial relationship with China. In 1986, total trade between the United States and China was $7.9 billion. By 2003, this total had reached $170 billion, making China the United States' third largest trading partner. U.S. exports to China grew by 66 percent over the next three years as compared to a 10 percent decline for the rest of the world. There are significant opportunities for U.S. businesses in China. Stonefield Josephson offers an array of services to companies involved in targeting those opportunities.

Services we offer:

• U.S. GAAP audit
  We provide auditing service for clients who prepare their financial statements in accordance with accounting principles generally accepted in the United States. We serve U.S.-based companies requiring auditing services for their Asia-based subsidiaries in order to prepare their audited, consolidated financial statements. In addition, we also provide auditing services for Asia-based companies (including China-based companies) intending to have their stock listed on the U.S. Stock Exchange through IPOs or reverse mergers.
  
  
• U.S. SEC advisory service
  Our advisory service professionals work closely with non-audit clients in the United States, China and around the world to assist them in their efforts to meet their financial reporting requirements through:
  • Providing information for the latest accounting and reporting pronouncements
  • Assisting in preparing the company's quarterly and annual financial statements prior to submission to external auditors Assisting in preparing other information included in SEC filings, such as Form 10K, 10Q and registration statements
  • Assistance in technical accounting areas such as income taxes and share-based compensation
  • Assessment of key accounting assumptions and practices
    
    
• Due diligence
  Performing due diligence on one's potential partners, distributors, suppliers or merger targets will help business owners make an informed and educated decision before entering into an agreement and can greatly boost the success rate of an M&A transaction, a joint-venture deal, or even a sourcing, supply or distribution relationship in China. Our well-schooled due diligence team operating in the post-Enron environment is on a focused mission to ascertain whether a company has even a hint of undisclosed accounting irregularities that could form the basis for material misstatements of its financial statements. We then suggest solutions to deal with any irregularities so that the company can exist with the peace of mind of a clean bill of health. We also assist our non-audit clients to evaluate potential acquirees' accounting books and records in order to determine whether the acquirees' financial statements are auditable.
  
  Our Due Diligence Review includes:
  • Review of accounting policies and procedures
  • Review of internal audit structure and procedures
  • Quality and sustainability of earnings and cash flow
  • Condition and value of assets
  • Undisclosed and potential liabilities
  • Accounting systems and controls
  • Tax implications of deal structures
  • Examination of key operational processes
  • Examination of information systems to establish the reliability of financial information
    
    
• U.S. GAAP conversion
  For companies needing assistance to successfully complete the transition to different accounting standards, Stonefield's conversion specialists bring technical, training, communications and change expertise to the table.
  
  We will guide your company through the operational, process-related, organizational and reporting issues associated with a transition, and will organize and support all parties (subsidiaries, local audit teams, and corporate personnel) to create a cohesive work product. Finally, we will share with you the expertise of our technical, training, and communication professionals, and our project management resources, thus strengthening the knowledge transfer and providing lasting, long-term benefits.
  
  Our U.S. GAAP conversion services include:
  • Identification of potential GAAP differences on the financial statements between the target's existing accounting standards and US GAAP
  • Quantification of the differences identified
  • Advise on the form and presentation of the financial statements
  • Training and embedding the conversion methodology in your accounting department to ensure sustainability
    
    
• Contract compliance
  
  
• Internal audit
  
  
• Interim CFO
  Companies hire interim CFOs for many reasons, but the catalyst driving that decision almost always falls into one of three categories: They need someone immediately (perhaps the current CFO became ill or left the company), they need someone for a finite period of time (until the company is sold, for example) or they need someone to handle a specific project with a defined end (implementing a new accounting software package, negotiating bank financing or steering the company through a bankruptcy filing). The overarching requirement, in all cases, is to find an interim executive with the appropriate background and expertise who can report for duty almost immediately.
  
  We serve owners of emerging and mid-market companies who want to increase cash, profitability, sales and company value. Our experts provide interim CFO services at every stage of your company's development.
  
  We offer the following CFO benefits:
  
  • Immediate help from an experienced CFO
  • CFO expertise for short-term projects
  • CFO expertise on a part-time basis
  • CFO expertise during company restructuring
  • CFO expertise while looking for a permanent CFO
  • CFO expertise with banking and financial issues
  • CFO expertise to improve efficiency, productivity and profitability
  • CFO expertise at a fraction of the cost of a full-time CFO
  • Manage infrastructure aspects of the company including customer support and information technology along with traditional financial and administrative aspects of the business

• Manage a professional services (billable) organization from proposal to billing
• Allow CEO to focus on sales, marketing and R & D aspects of the business
  
  
• Valuable connections
  In addition to our specialty services detailed above, we provide assistance with any aspect of business or finance to facilitate your doing business in China or developing further business opportunities there. We provide this assistance through our SJ Connect service, a valuable referral resource to help Stonefield Josephson clients and friends with immediate business, management and financial needs at the local, national or international level, drawing upon a network of top professionals in various disciplines beyond accounting. Through our SJ Connect service, we enable our clients to reliably establish, structure, and maintain successful operations in China.
  
  The assistance our connections can offer you includes:
  • Creating a China strategy and building a strategic market entry plan
  • Finding the right acquisition target or joint venture
  • Negotiating and structuring the deal
  • Navigating the complexities of the government and gaining the appropriate approvals and support
  • Protecting all aspects of intellectual property
  • Advising on raising capital from local and foreign sources
  • Fulfilling a business's potential in China by providing ongoing support once it is established

Contact Information for Principal in Charge:
Lawrence Wan
Tel: 852.2598.0918
Sun Hung Kai Centre
Suite 1732 - 1735
30 Harbour Road
Wanchai, Hong Kong

 
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