(Scope of this Act)
This Act shall govern the promulgation, audit and preparation of financial statements of the Central Government of Republic of China.

(Time of settlement and Ending Period)
Settlement of accounts by government shall be undertaken once a year in every fiscal year. Two months after the end of a calendar year shall be the ending period of that fiscal year.
Time limitation for handling affairs relating to payment and receipt within the ending period shall be decided by the Executive Yuan.

(Types of Financial statements)
Government financial statement shall be compiled pursuant to its budgets into following types:
1. General financial statement
2. Financial Statement of Departments
3. Sub-Financial Statement of Departments
4. Financial Statement of Subordinate Department
5. Sub-Financial Statement of Subordinate Department

(Scope of financial statement)
Annual revenue and expenditures of government in every fiscal year, borrowing and repayment of loans and appropriations from the remaining of annual budget from previous years shall be incorporated into the financial statement; income and expenditures not yet included in the financial statement of preceding year shall be incorporated into separate schedule attached in the financial statement.
The result from the execution of the authorized fund relating to future promises given by the Legislative Yuan in one year shall be expressed in the financial statement for that same year; any expenses that are likely to be incurred in the future fiscal year from aguarantee, surety or contractual agreement shall be explained in a table to be included in the financial statement.

(Account and Category)
The accounts of financial statements and their categories to be prepared shall depend on the accounts and categories listed in the budget for the same year. However, accounts organized, appropriated by the Executive Yuan according to statutory provisions, First Reserve Fund and other accounts appropriated for purposes prescribed by National Budget, Accounting and Statistics Authority (“BAS Authority”) shall not be subject to this limitation; For incomes that are not listed in the budget of that year, it shall be itemized according to the nature of income, then incorporated into the financial statement according to its category.

(Departmental Authority Fund and Currency for the Amount Recorded )
Departmental authorities and funds used in financial statements shall be governed by the Budget Act; the currencies for the amount recorded shall be consistent with budgets approved according to statutory provisions.

(Account exempted from inclusion in the financial statement)
All accounts receivable, accounts payable, expenditure encumbrances in financial statements which have not been realized for a period of four years after the ending of fiscal year in which statements were prepared, shall be exempted from inclusion into the financial statement. However, accounts receivable or accounts payable which are required to continue to be realized pursuant to other laws or regulations shall be incorporated into the financial statement prepared for the year in which those accounts have been realized under appropriate budget accounts.