MOF Issues Supplementary Provisions and Transitional Provisions on the Implementation of the Government Accounting System by Primary and Middle Schools
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 Primary and Middle Schools (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 Primary and Middle Schools. The Provisions will come into force as of January 1, 2019.
The Provisions provide clarity on the accounting of classification items under the title "Expenses for Undertakings", statements and instructions on the preparation thereof, the accounting treatment for catering services offered by canteens in primary and middle schools, the depreciable life of fixed assets, among others. As to the new items and how to provide information thereon, the Provisions require that, primary and middle schools shall add the sub-item "Including: Net Income of the Canteen" under the item "(XI) Other Income" in the statement of income and expenses, and add the sub-item "Net Budget Income of the Canteen" as one of items following the word "Including:" under the item "(IX) Other Budget Income" in the statement of budget income and expenses. Moreover, the Provisions note that primary and middle schools shall disclose the basic information about the expenses for undertakings in the format, shown in Schedule I to these Provisions, in the annotations given in financial statements.