(Adopted at the Ninth Meeting of the Standing Committee of the Sixth National People’s Congress and promulgated by Order
CONTENTS
CHAPTER I GENERAL PROVISIONS
CHAPTER II ACCOUNTING PRACTICE
CHAPTER III ACCOUNTING SUPERVISION
CHAPTER IV ACCOUNTING OFFICES AND ACCOUNTING PERSONNEL
CHAPTER V LEGAL LIABILITY
CHAPTER VI SUPPLEMENTARY PROVISIONS
CHAPTER I GENERAL PROVISIONS Article 1. This Law is formulated in order to improve accounting work, to ensure that accounting personnel exercise their functions Article 2. State enterprises and institutions, government agencies, public organizations and armed forces shall abide by this Law Article 3. Accounting offices and accounting personnel must abide by laws and regulations, and handle accounting affairs, conduct Article 4. Administrative heads of all localities, departments and units shall direct their accounting offices, accounting Moral encouragement and material awards shall be given to the accounting personnel who have made outstanding Article 5. The department of finance under the State Council shall administer the accounting work throughout the country. The departments of finance under the local people’s governments at various levels shall administer the accounting work of Article 6. A uniform accounting system of the state shall be formulated by the department of finance under the State Council in accordance The departments of finance under the people’s governments of the provinces, autonomous regions, and municipalities
CHAPTER II ACCOUNTING PRACTICE Article 7. Accounting procedures shall be undertaken and accounting conducted with respect to the following transactions: (1) receipts and disbursements of cash holdings and valuable securities; (2) receipts, issuances, additions, reductions and use of money and articles of property; (3) creation and settlement of debts and claims; (4) increases and decreases of funds, receipts and outlays of appropriations; (5) computation of revenue, expenses and costs; (6) computation and treatment of financial results; and (7) other transactions that are subject to accounting procedures and to accounting. Article 8. The fiscal year shall start on January 1 and end on December 31 on the Gregorian calendar. Article 9. Account books shall be kept, using Renminbi yuan as the unit. Transactions in foreign currency shall be converted into Renminbi in bookkeeping, and the conversion rate Article 10. Accounting documents, account books, accounting statements and other accounting information shall be authentic, accurate Article 11. In handling the transactions specified in Article 7 of this Law, original documents must be drawn up or obtained, and then Accounting offices must examine the original documents and prepare accounting vouchers based on the original documents Article 12. Each unit shall set up its accounting items and account books in accordance with the provisions of the accounting system. Accounting offices shall keep their books on the basis of the examined original documents and accounting Article 13. Each unit shall set up a property inventory system and ensure that the accounting records conform to the physical assets Article 14. Each unit shall prepare its accounting statements on the basis of the accounting records and in accordance with the provisions Accounting statements shall be signed or sealed by the unit’s administrative head, the person in charge of Article 15. Archives shall be established for accounting documents, account books, accounting statements and other accounting
CHAPTER III ACCOUNTING SUPERVISION Article 16. The accounting office and accounting personnel of a unit shall exercise accounting supervision over the unit. Article 17. Accounting offices and accounting personnel shall not accept any original documents that are inauthentic or illegitimate. Article 18. When an accounting office and accounting personnel find that the accounting records do not conform to the physical Article 19. An accounting office and accounting personnel shall not handle any receipts or disbursements that violate the stipulations In cases where an accounting office and accounting personnel believe that certain receipts and disbursements are Article 20. All units must accept supervision exercised in accordance with laws and relevant state regulations by auditing agencies, Public accountants’ offices composed of certified public accountants approved by the department of finance
CHAPTER IV ACCOUNTING OFFICES AND ACCOUNTING PERSONNEL Article 21. According to the needs of its accounting work, each unit shall set up an accounting office or staff a relevant Accounting offices shall establish an internal auditing system. A cashier shall not be concurrently in charge of auditing, taking custody of accounting archives or keeping the revenue, Article 22. The main functions of accounting offices and accounting personnel shall be: (1) to conduct accounting practice pursuant to the provisions of CHAPTER Two of this Law; (2) to exercise accounting supervision pursuant to the provisions of CHAPTER Three of this Law; (3) to formulate specific procedures for handling accounting affairs in their respective units; (4) to participate in the formulation of economic and business plans, and examine and analyse the results of (5) to handle other accounting affairs. Article 23. Accounting personnel shall be appointed or removed in accordance with the provisions for the limits of authority Article 24. Accounting personnel who are being transferred to other work or leaving their posts must finalize the handing-over The person in charge of the accounting office and the accountant in charge shall supervise handing-over procedures
CHAPTER V LEGAL LIABILITY Article 25. Administrative sanctions shall be taken against administrative heads of those units and accounting personnel Article 26. Administrative sanctions shall be taken against administrative heads of units, accounting personnel and other personnel Article 27. Administrative sanctions shall be taken against those accounting personnel who have accepted original vouchers that Article 28. Administrative sanctions shall be taken against those heads of the superior administrative units who have received written Article 29. Administrative sanctions shall be taken against those administrative heads of units and other personnel who attack
CHAPTER VI SUPPLEMENTARY PROVISIONS Article 30. Procedures for the administration of accounting work of urban and rural economic collectives shall be jointly formulated Article 31. This Law shall come into force on May 1, 1985.
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