Regulations on Basic Accounting Practice (Revised in 2019)
Regulations on Basic Accounting Practice (Revised in 2019)
Regulations on Basic Accounting Practice (Revised in 2019)
Order of the Ministry of Finance of the People's Republic of China No. 98
March 14, 2019
(Promulgated by Document Cai Kuai Zi [1996] No.19 on June 17, 1996, and revised according to the Decision of the Ministry of Finance on Revising Two Departmental Rules Including the Administrative Measures for Bookkeeping on March 14, 2019)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the Accounting Law of the People's Republic of China in order to strengthen the basic accounting work, establish standardized accounting work order and improve accounting standards.
Article 2 Basic accounting work performed by state organs, social groups, enterprises, institutions, individual businesses and other organizations shall meet the requirements of these Regulations.
Article 3 All the units shall, in accordance with the relevant laws and regulations and these Regulations, strengthen the basic accounting work and strictly implement the accounting regulations and by-laws, so as to ensure the orderly proceeding of the accounting work according to law.
Article 4 Heads of the units shall be responsible for leading the basic accounting work of own units.
Article 5 Finance Departments (Bureaus) of Provinces, Autonomous Regions and Municipalities Under Direct Government shall strengthen the management and guidance of the basic accounting work and, through measures such as policy guidance, exchange of experience, supervision and inspection, promote the grass-roots units to strengthen the basic accounting work and continuously improve the level of accounting work.
Business administrative authorities of the State Council shall administer the basic accounting work of their own departments according to the scope of their respective authorizations and powers.
Chapter II Accounting Organization and Accounting Personnel
Section 1 Establishment of Accounting Organization and Staffing of Accounting Personnel
Article 6 All units shall set up their accounting departments according to the needs in accounting business; units that have no conditions to set up separate accounting institution shall staff full-time accounting personnel in the relevant institution.
Configuration of the accounting departments and staffing of accounting personnel of administrative units shall comply with the provisions of the uniform state accounting system of the administrative units.
Accounting departments shall have heads to lead such accounting departments; when staffing full-time accounting personnel in the relevant departments, an executive accounting officer shall be appointed from the full-time accounting personnel.
The appointment and removal of the heads and executive accounting officers of the accounting departments shall comply with the Accounting Law of the People's Republic of China and relevant laws and regulations.
Article 7 Accounting departments Heads and executive accounting officers of the accounting departments shall meet the following basic conditions:
1. Adhere to the principle and remain clean and devoted when performing official duties;
2. Have the qualification for professional technical post with the title of accountant or above, or engaging in accounting for no less than three years;
3. Familiar with the country's financial laws, rules, regulations and policies and have a good command of the knowledge related to business management of own industry;
4. Have relatively strong organizing capacity;
5. Physical condition can meet the requirements of their jobs.
Article 8 Units that have not set up accounting departments and staffed them with accounting personnel shall entrust certified public accountant firms or bookkeeping agencies holding bookkeeping certificates in accordance with the Administrative Measures for Bookkeeping.
Article 9 Large and medium-sized enterprises, public institutions and business administrative authorities shall have a chief accountant in accordance with the laws and relevant provisions of the state. The position of chief accountant shall be assumed by a person with professional and technical qualifications above that of certified public accountant.
Chief accountant shall exercise the duties and powers set forth in the Regulations on Chief Accountant.
The appointment (employment) and removal (dismissal) of the chief accountant shall comply with the Regulations on Chief Accountant and relevant laws and regulations.
Article 10 All units shall staff themselves with accounting personnel according to the needs of accounting business, and prompt them to comply with professional ethics and the uniform accounting system of the State.
Article 11 All units shall set up their accounting office according to the needs in accounting business.
Accounting offices shall generality consist of: heads or executive accounting officers of the accounting departments, Cashier, property and materials accounting, payroll accounting, cost and expense accounting, financial results accounting, fund accounting, transaction settlement, general ledger statements, auditing and file management, etc. Units that unfold computerized accounting and management accounting may set up corresponding work positions according to needs or set up posts in connection with other work stations.
Article 12 For staffing of accounting positions, it is allowed to have configurations such as one person to assume one post, one person to assume several posts or several persons to assume one post. But the cashier shall not concurrently conduct auditing, accounting record custody and registration of income, expenses, credit and liability accounts.
Article 13 Work stations of accounting personnel shall be subject to planned job rotation.
Article 14 Accounting personnel shall have the necessary professional knowledge and skills, be familiar with relevant state laws, rules, regulations and the uniform state accounting system, and observe the standard of professional integrity.
Accounting personnel shall participate in accounting business training according to the relevant state provisions. All units shall reasonably arrange for the accounting staff training and ensure that the accounting personnel have certain amount of time each year for study and training.
Article 15 Leaders of all units shall support the accounting departments and accounting personnel to perform their duties and powers according to law; the accounting departments and accounting personnel that have made outstanding achievements as a result of devotion to official duty and upholding the principles should be awarded with moral and material incentives.
Article 16 State organs, state-owned enterprises and institutions shall implement the avoidance system in the appointment of accounting personnel.
The direct relative of unit's leader shall not assume the offices of head of accounting department and executive accounting officer of own unit. The direct relative of unit's leader shall not assume the offices of the head of accounting department and executive accounting officer.
The direct relatives that need to avoid shall be: husband-wife relationship, lineal blood relationship, collateral consanguinity within three generations and the pro-spouse relationship.
Section 2 Professional Integrity of Accounting Personnel
Article 17 Accounting personnel shall observe professional integrity in their accounting work, uphold good professional quality, rigorous work style, and strictly observe work discipline and work hard to improve work efficiency and quality.
Article 18 Accounting personnel shall love their own work and learn business knowledge, so as to cause their knowledge and skills to meet the requirements of the work undertaken.
Article 19 Accounting personnel shall be familiar with the financial laws, regulations, rules and the uniform state accounting system, and shall widely publicize the same in conjunction with the accounting work.
Article 20 Accounting personnel shall perform accounting work in accordance with the financial laws, regulations, rules and the procedures and requirements of the uniform state accounting system, and ensure the provided accounting information is lawful, true, accurate, timely and complete.
Article 21 Accounting personnel shall be realistic, objective and fair in handling accounting matters.
Article 22 Accounting personnel shall be familiar with the production operation and business management of own unit, apply the accounting information and accounting method at their disposal to serve the purposes of improving internal management of the unit and enhancing economic results.
Article 23 Accounting personnel shall keep the trade secrets of the unit confidential. Unless required by law and with the consent of the unit leader, no accounting personnel shall have the discretion to provide or disclose accounting information of the unit to the outsider.
Article 24 Financial departments, business administrative authorities and various units shall regularly review the situations pertaining to the performance of accounting personnel in compliance with the professional integrity, and the finding shall be used as the important assessment basis in connection with the promotion, rising in rank, appointment for professional duties, appraisal and reward of accounting personnel.
The accounting personnel in breach of professional integrity shall be punished by their respective unit.
Section 3 Handover of Accounting Work
Article 25 In the event of relocation or departure from office due to whatever reasons, the accounting personnel must completely hand over the accounting work under its management to the replacement personnel. Those that have not completed the handover formalities shall not proceed with the relocation or departure.
Article 26 Replacement personnel shall seriously take over the handover work and continue to handle the outstanding issues in the course of handover.
Article 27 Before completing the handover procedure, the accounting personnel must promptly do the following:
1. In case the business transactions have been accepted but the related accounting vouchers are not filled, proceed to complete the filling of such accounting vouchers.
2. Registration of unregistered accounts shall be completed, and the seal of the officer-in-charge shall be affixed thereon after the last sum of balance.
3. Compile various data under handover and prepare a written statement of the outstanding issues.
4. Prepare the handover inventory, specify the accounting vouchers, account book, accounting statements, seal, cash, securities, checkbooks, invoices, documents, other accounting data and materials, etc. pending handover; for units that implements computerized accounting, the handover personnel that engage in that work shall also specify the accounting software and password, accounting software data disks (tapes) as well as related information and supplies in-kind in the handover inventory.
Article 28 When the accounting personnel are going through handover procedures, there must be a supervisor responsible for supervision of the handover process.
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Order of the Ministry of Finance of the People's Republic of China No. 98
March 14, 2019
(Promulgated by Document Cai Kuai Zi [1996] No.19 on June 17, 1996, and revised according to the Decision of the Ministry of Finance on Revising Two Departmental Rules Including the Administrative Measures for Bookkeeping on March 14, 2019)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the Accounting Law of the People's Republic of China in order to strengthen the basic accounting work, establish standardized accounting work order and improve accounting standards.
Article 2 Basic accounting work performed by state organs, social groups, enterprises, institutions, individual businesses and other organizations shall meet the requirements of these Regulations.
Article 3 All the units shall, in accordance with the relevant laws and regulations and these Regulations, strengthen the basic accounting work and strictly implement the accounting regulations and by-laws, so as to ensure the orderly proceeding of the accounting work according to law.
Article 4 Heads of the units shall be responsible for leading the basic accounting work of own units.
Article 5 Finance Departments (Bureaus) of Provinces, Autonomous Regions and Municipalities Under Direct Government shall strengthen the management and guidance of the basic accounting work and, through measures such as policy guidance, exchange of experience, supervision and inspection, promote the grass-roots units to strengthen the basic accounting work and continuously improve the level of accounting work.
Business administrative authorities of the State Council shall administer the basic accounting work of their own departments according to the scope of their respective authorizations and powers.
Chapter II Accounting Organization and Accounting Personnel
Section 1 Establishment of Accounting Organization and Staffing of Accounting Personnel
Article 6 All units shall set up their accounting departments according to the needs in accounting business; units that have no conditions to set up separate accounting institution shall staff full-time accounting personnel in the relevant institution.
Configuration of the accounting departments and staffing of accounting personnel of administrative units shall comply with the provisions of the uniform state accounting system of the administrative units.
Accounting departments shall have heads to lead such accounting departments; when staffing full-time accounting personnel in the relevant departments, an executive accounting officer shall be appointed from the full-time accounting personnel.
The appointment and removal of the heads and executive accounting officers of the accounting departments shall comply with the Accounting Law of the People's Republic of China and relevant laws and regulations.
Article 7 Accounting departments Heads and executive accounting officers of the accounting departments shall meet the following basic conditions:
1. Adhere to the principle and remain clean and devoted when performing official duties;
2. Have the qualification for professional technical post with the title of accountant or above, or engaging in accounting for no less than three years;
3. Familiar with the country's financial laws, rules, regulations and policies and have a good command of the knowledge related to business management of own industry;
4. Have relatively strong organizing capacity;
5. Physical condition can meet the requirements of their jobs.
Article 8 Units that have not set up accounting departments and staffed them with accounting personnel shall entrust certified public accountant firms or bookkeeping agencies holding bookkeeping certificates in accordance with the Administrative Measures for Bookkeeping.
Article 9 Large and medium-sized enterprises, public institutions and business administrative authorities shall have a chief accountant in accordance with the laws and relevant provisions of the state. The position of chief accountant shall be assumed by a person with professional and technical qualifications above that of certified public accountant.
Chief accountant shall exercise the duties and powers set forth in the Regulations on Chief Accountant.
The appointment (employment) and removal (dismissal) of the chief accountant shall comply with the Regulations on Chief Accountant and relevant laws and regulations.
Article 10 All units shall staff themselves with accounting personnel according to the needs of accounting business, and prompt them to comply with professional ethics and the uniform accounting system of the State.
Article 11 All units shall set up their accounting office according to the needs in accounting business.
Accounting offices shall generality consist of: heads or executive accounting officers of the accounting departments, Cashier, property and materials accounting, payroll accounting, cost and expense accounting, financial results accounting, fund accounting, transaction settlement, general ledger statements, auditing and file management, etc. Units that unfold computerized accounting and management accounting may set up corresponding work positions according to needs or set up posts in connection with other work stations.
Article 12 For staffing of accounting positions, it is allowed to have configurations such as one person to assume one post, one person to assume several posts or several persons to assume one post. But the cashier shall not concurrently conduct auditing, accounting record custody and registration of income, expenses, credit and liability accounts.
Article 13 Work stations of accounting personnel shall be subject to planned job rotation.
Article 14 Accounting personnel shall have the necessary professional knowledge and skills, be familiar with relevant state laws, rules, regulations and the uniform state accounting system, and observe the standard of professional integrity.
Accounting personnel shall participate in accounting business training according to the relevant state provisions. All units shall reasonably arrange for the accounting staff training and ensure that the accounting personnel have certain amount of time each year for study and training.
Article 15 Leaders of all units shall support the accounting departments and accounting personnel to perform their duties and powers according to law; the accounting departments and accounting personnel that have made outstanding achievements as a result of devotion to official duty and upholding the principles should be awarded with moral and material incentives.
Article 16 State organs, state-owned enterprises and institutions shall implement the avoidance system in the appointment of accounting personnel.
The direct relative of unit's leader shall not assume the offices of head of accounting department and executive accounting officer of own unit. The direct relative of unit's leader shall not assume the offices of the head of accounting department and executive accounting officer.
The direct relatives that need to avoid shall be: husband-wife relationship, lineal blood relationship, collateral consanguinity within three generations and the pro-spouse relationship.
Section 2 Professional Integrity of Accounting Personnel
Article 17 Accounting personnel shall observe professional integrity in their accounting work, uphold good professional quality, rigorous work style, and strictly observe work discipline and work hard to improve work efficiency and quality.
Article 18 Accounting personnel shall love their own work and learn business knowledge, so as to cause their knowledge and skills to meet the requirements of the work undertaken.
Article 19 Accounting personnel shall be familiar with the financial laws, regulations, rules and the uniform state accounting system, and shall widely publicize the same in conjunction with the accounting work.
Article 20 Accounting personnel shall perform accounting work in accordance with the financial laws, regulations, rules and the procedures and requirements of the uniform state accounting system, and ensure the provided accounting information is lawful, true, accurate, timely and complete.
Article 21 Accounting personnel shall be realistic, objective and fair in handling accounting matters.
Article 22 Accounting personnel shall be familiar with the production operation and business management of own unit, apply the accounting information and accounting method at their disposal to serve the purposes of improving internal management of the unit and enhancing economic results.
Article 23 Accounting personnel shall keep the trade secrets of the unit confidential. Unless required by law and with the consent of the unit leader, no accounting personnel shall have the discretion to provide or disclose accounting information of the unit to the outsider.
Article 24 Financial departments, business administrative authorities and various units shall regularly review the situations pertaining to the performance of accounting personnel in compliance with the professional integrity, and the finding shall be used as the important assessment basis in connection with the promotion, rising in rank, appointment for professional duties, appraisal and reward of accounting personnel.
The accounting personnel in breach of professional integrity shall be punished by their respective unit.
Section 3 Handover of Accounting Work
Article 25 In the event of relocation or departure from office due to whatever reasons, the accounting personnel must completely hand over the accounting work under its management to the replacement personnel. Those that have not completed the handover formalities shall not proceed with the relocation or departure.
Article 26 Replacement personnel shall seriously take over the handover work and continue to handle the outstanding issues in the course of handover.
Article 27 Before completing the handover procedure, the accounting personnel must promptly do the following:
1. In case the business transactions have been accepted but the related accounting vouchers are not filled, proceed to complete the filling of such accounting vouchers.
2. Registration of unregistered accounts shall be completed, and the seal of the officer-in-charge shall be affixed thereon after the last sum of balance.
3. Compile various data under handover and prepare a written statement of the outstanding issues.
4. Prepare the handover inventory, specify the accounting vouchers, account book, accounting statements, seal, cash, securities, checkbooks, invoices, documents, other accounting data and materials, etc. pending handover; for units that implements computerized accounting, the handover personnel that engage in that work shall also specify the accounting software and password, accounting software data disks (tapes) as well as related information and supplies in-kind in the handover inventory.
Article 28 When the accounting personnel are going through handover procedures, there must be a supervisor responsible for supervision of the handover process.
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