Accounting Standards for Public Institutions
Accounting Standards for Public Institutions
Accounting Standards for Public Institutions
Order of the Ministry of Finance No. 72
December 6, 2012
The Accounting Standards for Public Institutions, which were revised and adopted at the Executive Meeting of the Ministry of Finance on December 5, 2012, are hereby promulgated and shall come into effect as of January 1, 2013.
Accounting Standards for Public Institutions
Chapter I General Provisions
Article 1 These Standards are enacted in accordance with the Accounting Law of the People's Republic of China and other applicable laws and administrative regulations for the purpose of regulating the accounting of public institutions, ensuring the quality of accounting information and promoting the healthy development of public undertakings.
Article 2 These Standards apply to all types of public institutions on all levels.
Article 3 The accounting system for public institutions and the accounting system for public institutions for specific industries (hereafter collectively referred to as "accounting systems") will be formulated by the Ministry of Finance in accordance with these Standards.
Article 4 The target of accounting of a public institution is to provide users with accounting information on the financial position, achievements in public undertaking, and budge implementation of the public institution, reflect the public institution's performance of the duties that it is entrusted with, and help accounting information users in carrying out social management and making decisions on economic and financial issues.
Users of accounting information of public institutions include governments and relevant departments thereof, sponsor (superior) entities, creditors, the public institution themselves and other interested parties thereof.
Article 5 Public institutions shall carry out financial accounting on its own financial transactions or events.
Article 6 The financial accounting by public institution shall be carried out on the precondition of the normal and continuous proceeding of the business activities thereof.
Article 7 Public institutions shall define proper accounting periods and prepare accounting books and formulate financial accounting reports (also known as financial reports; the same hereafter) based on such periods.
Accounting periods shall at least include yearly and monthly periods. The starting and ending dates of the annual and monthly accounting periods of public institutions shall be based on calendar dates.
Article 8 RMB shall be adopted as the standard currency in the financial accounting of public institutions. In the case of business transaction denominated in a foreign currency, the sums denominated in the foreign currency shall be converted to RMB-denominated sums in bookkeeping.
Article 9 As a general rule, financial accounting of public institutions shall be on a cash basis; where any economic transaction or event is on an accrual basis, the Ministry of Finance shall make specific provisions in relevant accounting systems.
Where the financial accounting of any public institution is on an accrual basis, the Ministry of Finance shall include provisions in relevant accounting systems.
Article 10 The accounting factors of public institutions include assets, liabilities, net assets, revenues, expenses or costs.
Article 11 The bookkeeping of public institutions shall be on the debit-credit accounting system.
Chapter II Quality Requirements for Accounting Information
Article 12 Public institutions shall base their financial accounting on business transactions or events that actually occur, truthfully reflect the position and result of all the accounting factors and ensure the truthfulness and reliability of the accounting information.
Article 13 A public institution shall include its financial transactions or events into its financial accounting on a uniform basis, so as to ensure that its accounting information comprehensively reflects the financial position, achievements in its public undertaking and budget implementation and other facts of the public institution.
Article 14 A public institution shall timely carry out financial accounting on its financial transactions or events that have occurred and may not do so ahead or after the statutory time for such financial accounting.
Article 15 The financial accounting provided by public institutions shall be comparable.
Financial transactions or events of one and the same public institution that are of the same or a similar type and occur in different periods shall be based on consistent accounting polices, which may not be changed without proper reason. Where such change is necessary, a statement on what is changed as well as the reason(s) for such change and the impact of such change on the financial position and public undertaking performance of the public institution shall be included as annotations to the accounting information provided.
Financial transactions or events of different public institutions of the same or a similar type shall be based on uniform accounting policies, so as to ensure the consistency and comparability of the accounting information of the same or similar type of public institutions.
Article 16 The accounting information provided by a public institution shall be relevant to reflecting the public institution's performance of the duties that it is entrusted with and the management and decision-making of the users of such accounting information, be conducive to the accounting information users' assessment and prediction of the past, present and future performance of the public institution.
Article 17 The accounting information provided by public institutions shall be clear and ready to be understood and used by the users thereof.
Chapter III Assets
Article 18 Assets of a public institution refer to the economic resources that the are possessed or used by the public institution and may be measured in monetary terms, including various types of property, creditor' rights and other forms of rights.
Article 19 The assets of public institutions are classified into current assets and non-current assets based on the fluidity thereof.
Current assets refer to those that are expected to be liquidated or consumed in one year or a shorter period of time.
Non-current assets refer to assets other than current assets.
Article 20 Current assets of public institutions include monetary funds, short-term investments, receivable and prepayments as well as inventories.
Monetary funds include cash on hand, bank deposits, the allowable quota under zero-balance accounts, etc.
Short-term investments of a public institution refer to investments that the public institution obtains in accordance with law and can hold for a period of one year or less.
Receivables and prepayments of a public institution refer to various forms of creditors' rights that the public institution obtains in its business activities, including such receivables and prepayments as quotas refundable by the government, notes receivable, accounts receivable and other receivables.
Inventories of a public institution refer to assets stored by the public institution for the purposes of its business activities and other events, including materials, fuel, packaging and low-cost consumables.
Article 21 Non-current assets of public institutions include long-term investment, construction in progress, fixed assets, and intangible assets, among others.
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Order of the Ministry of Finance No. 72
December 6, 2012
The Accounting Standards for Public Institutions, which were revised and adopted at the Executive Meeting of the Ministry of Finance on December 5, 2012, are hereby promulgated and shall come into effect as of January 1, 2013.
Accounting Standards for Public Institutions
Chapter I General Provisions
Article 1 These Standards are enacted in accordance with the Accounting Law of the People's Republic of China and other applicable laws and administrative regulations for the purpose of regulating the accounting of public institutions, ensuring the quality of accounting information and promoting the healthy development of public undertakings.
Article 2 These Standards apply to all types of public institutions on all levels.
Article 3 The accounting system for public institutions and the accounting system for public institutions for specific industries (hereafter collectively referred to as "accounting systems") will be formulated by the Ministry of Finance in accordance with these Standards.
Article 4 The target of accounting of a public institution is to provide users with accounting information on the financial position, achievements in public undertaking, and budge implementation of the public institution, reflect the public institution's performance of the duties that it is entrusted with, and help accounting information users in carrying out social management and making decisions on economic and financial issues.
Users of accounting information of public institutions include governments and relevant departments thereof, sponsor (superior) entities, creditors, the public institution themselves and other interested parties thereof.
Article 5 Public institutions shall carry out financial accounting on its own financial transactions or events.
Article 6 The financial accounting by public institution shall be carried out on the precondition of the normal and continuous proceeding of the business activities thereof.
Article 7 Public institutions shall define proper accounting periods and prepare accounting books and formulate financial accounting reports (also known as financial reports; the same hereafter) based on such periods.
Accounting periods shall at least include yearly and monthly periods. The starting and ending dates of the annual and monthly accounting periods of public institutions shall be based on calendar dates.
Article 8 RMB shall be adopted as the standard currency in the financial accounting of public institutions. In the case of business transaction denominated in a foreign currency, the sums denominated in the foreign currency shall be converted to RMB-denominated sums in bookkeeping.
Article 9 As a general rule, financial accounting of public institutions shall be on a cash basis; where any economic transaction or event is on an accrual basis, the Ministry of Finance shall make specific provisions in relevant accounting systems.
Where the financial accounting of any public institution is on an accrual basis, the Ministry of Finance shall include provisions in relevant accounting systems.
Article 10 The accounting factors of public institutions include assets, liabilities, net assets, revenues, expenses or costs.
Article 11 The bookkeeping of public institutions shall be on the debit-credit accounting system.
Chapter II Quality Requirements for Accounting Information
Article 12 Public institutions shall base their financial accounting on business transactions or events that actually occur, truthfully reflect the position and result of all the accounting factors and ensure the truthfulness and reliability of the accounting information.
Article 13 A public institution shall include its financial transactions or events into its financial accounting on a uniform basis, so as to ensure that its accounting information comprehensively reflects the financial position, achievements in its public undertaking and budget implementation and other facts of the public institution.
Article 14 A public institution shall timely carry out financial accounting on its financial transactions or events that have occurred and may not do so ahead or after the statutory time for such financial accounting.
Article 15 The financial accounting provided by public institutions shall be comparable.
Financial transactions or events of one and the same public institution that are of the same or a similar type and occur in different periods shall be based on consistent accounting polices, which may not be changed without proper reason. Where such change is necessary, a statement on what is changed as well as the reason(s) for such change and the impact of such change on the financial position and public undertaking performance of the public institution shall be included as annotations to the accounting information provided.
Financial transactions or events of different public institutions of the same or a similar type shall be based on uniform accounting policies, so as to ensure the consistency and comparability of the accounting information of the same or similar type of public institutions.
Article 16 The accounting information provided by a public institution shall be relevant to reflecting the public institution's performance of the duties that it is entrusted with and the management and decision-making of the users of such accounting information, be conducive to the accounting information users' assessment and prediction of the past, present and future performance of the public institution.
Article 17 The accounting information provided by public institutions shall be clear and ready to be understood and used by the users thereof.
Chapter III Assets
Article 18 Assets of a public institution refer to the economic resources that the are possessed or used by the public institution and may be measured in monetary terms, including various types of property, creditor' rights and other forms of rights.
Article 19 The assets of public institutions are classified into current assets and non-current assets based on the fluidity thereof.
Current assets refer to those that are expected to be liquidated or consumed in one year or a shorter period of time.
Non-current assets refer to assets other than current assets.
Article 20 Current assets of public institutions include monetary funds, short-term investments, receivable and prepayments as well as inventories.
Monetary funds include cash on hand, bank deposits, the allowable quota under zero-balance accounts, etc.
Short-term investments of a public institution refer to investments that the public institution obtains in accordance with law and can hold for a period of one year or less.
Receivables and prepayments of a public institution refer to various forms of creditors' rights that the public institution obtains in its business activities, including such receivables and prepayments as quotas refundable by the government, notes receivable, accounts receivable and other receivables.
Inventories of a public institution refer to assets stored by the public institution for the purposes of its business activities and other events, including materials, fuel, packaging and low-cost consumables.
Article 21 Non-current assets of public institutions include long-term investment, construction in progress, fixed assets, and intangible assets, among others.
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