MOF Issues Supplementary Provisions and Transitional Provisions on the Implementation of the Government Accounting System by Institutions of Higher Learning
The Ministry of Finance ("MOF") has recently distributed the Supplementary Provisions on the Implementation of the Government Accounting System - Account Titles and Accounting Statements for Administrative Organs and Public Institutions by Institutions of Higher Learning (the "Provisions") and the Transitional Provisions on the Implementation of the Government Accounting System - Account Titles and Accounting Statements for Administrative Organs and Public Institutions by Institutions of Higher Learning. The Provisions will come into force as of January 1, 2019.
The Provisions provide clarity on eleven issues, including "how to set up classification items under the relevant first-level title of the new system". In particular, as to the classification items, the Provisions require that, institutions of higher learning shall set up classification items, i.e. "410101 income derived from education undertakings" and "410102 income derived from scientific and technological research", under the title "4101 income derived from undertakings", and classification items, i.e. "500101 educational expenses" and "500102 scientific and technological expenses", under the title "5001 expenses of business activities", when the new system takes effect. In terms of financial statements and instructions on the preparation thereof, the Provisions state that, institutions of higher learning shall add sub-items, including "income derived from education undertakings" and "income derived from scientific and technological research", to the Item "(II) Income Derived from Undertakings" in the statement of income and expenses.