MOF Issues Interim Provisions on Accounting Treatment for Businesses Relating to Local Government Special-purpose Bonds

The Ministry of Finance (MOF) recently issued the Interim Provisions on Accounting Treatment for Businesses Relating to Local Government Special-purpose Bonds (the "Provisions"), with effect from January 1, 2026.

The Provisions consist of five parts: accounting treatment for administrative and institutional project entities, accounting treatment for enterprise project entities, reporting of special information, accounting treatment for transition between old and new rules, and supplementary provisions. Notably, the second part, accounting treatment for enterprise project entities, regulates the accounting treatment for enterprise project entities in obtaining special-purpose bond funds, purchasing or constructing related assets, and gaining project income, among other matters. According to the Provisions, both administrative and institutional project entities and enterprise project entities shall determine whether to recognize liabilities based on whether the project implementation plan (or financing balance plan) requires the respective entity to assume the obligation to repay principal and interest. This is designed to align with debt management requirements and ensure that project entities assume repayment responsibilities.



(Source: http://kjs.mof.gov.cn/zhengcefabu/202509/t20250904_3971510.htm)

Note: The link to the Chinese official website of the document is for your reference.