Circular of Ministry of Finance on Issuance of the Regulations on Basic Accounting Practice
Circular of Ministry of Finance on Issuance of the Regulations on Basic Accounting Practice
Circular of Ministry of Finance on Issuance of the Regulations on Basic Accounting Practice
Cai Kuai Zi [1996] No. 19
June 17, 1996
Finance Departments (Bureaus) of Provinces, Autonomous Regions, Municipalities Under Direct Central Government and Municipalities of Separate Planning, Finance Divisions of Relevant Ministries, Commissions and Bureaus of the State Council and the General Corporation,
In order to strengthen the basic accounting work, establish a standardized accounting work order and continuously improve accounting work quality, our Ministry has formulated the Regulations on Basic Accounting Practice (hereinafter as these "Regulations"),We hereby promulgate these Regulations, Please organize the implementation in accordance with the realities of the basic accounting work in your own localities and departments, the relevant requirements for the implementation are as follows:
I. It is imperative to widely publicize and study these Regulations. The Regulations are the basic standards for various units and the accounting personnel to perform their basic accounting work as well as the important basis for the financial departments and business administrative authorities of all levels to carry out examination and inspection of the performance of the basic accounting work. Therefore, it is imperative to widely publicize the importance and necessity of strengthening the basic accounting work, publicize the basic requirements for all aspects of basic accounting work, and uniform the awareness of the leadership at all levels and the accounting personnel relating to the basic accounting work in conjunction with the implementation of these Regulations, So that the accounting personnel of each unit could understand and command the requirements for basic accounting work and perform the basic accounting work well.
II. It is imperative to combine the implementation of these Regulations with the rectification of the accounting work order so as to achieve the purpose of these Regulations on Basic Accounting Practice. Financial departments and business administrative authorities at all levels shall, in accordance with the spirit of the "Circular of State Council on Rectifying the Accounting Work Order and Further Improving the Quality of Accounting Work", Urge all units to establish accounting ledgers in accordance with the requirements of these Regulations. Meanwhile, it is imperative to treat it as a regular work to implement the provisions of these Regulations and promote the standardization of the basic accounting work in an urgent and earnest manner. The accounting personnel of all units shall always perform self-examination and rectification according to the requirements of these Regulations and ensure improvement of the accounting work quality and effective display of its functional role on the basis of solid and orderly basic accounting practice.
Should all localities and departments encounter any questions and have any opinions in the implementation of these Regulations, please reflect them to our Ministry.
Appendices:
I. Regulations on Basic Accounting Practice
II. Notes on these Regulations on Basic Accounting Practice(Omitted)
Appendix I:
Regulations on Basic Accounting Practice
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 professional accounting technological qualification;
3. No less than two years in charge of an important aspect of financial accounting work of or in a unit;
4. 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;
5. Have relatively strong organizing capacity;
6. Physical condition can meet the requirements of their jobs.
Article 8 Units that have not set up accounting departments and staffed accounting personnel shall retain certified public accountant firms or other agency bookkeeping institutions holding agency bookkeeping certificates in accordance with the Interim Measures for the Administration of Agency 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 accounting personnel holding accounting certificates according to the needs in accounting business. Personnel that have not obtained the accounting certificates shall not engage in accounting work.
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; for serious cases, the accounting certificate issuing authority shall revoke its accounting certificate.
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.
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