(Application of Law)
Unless otherwise provided in this Act, the preparation, delivery, audit and consolidation of accounts in financial statements for each authorities and funds shall be governed by the Accounting Act pertaining to preparation of financial statement.

(Changes in authority or fund)
In the event that there are changes in the authorities or funds within the fiscal year, financial statements shall be prepared in accordance with the following:
1. Where authority has been re-organized, the amount or the jurisdiction of funds have been changed or transferred to another authority, financial statement shall be prepared by the authority which is in control after the re-organization or authority in charge of fund after the change or transfer.
2. Where the name of the authority or the fund has been changed, financial statement shall be prepared by the said authority or authority that is in charge of funds after the change.
3. Where numerous authorities or funds amalgamate into one authority or one fund, the financial statements for each fund or authority prior to amalgamation shall be prepared each and separately by the said authority or authority that is in charge of fund after the amalgamation.
4. Where re-organization or alteration of authority results in division of budget or where a fund was amalgamated but later divided into numerous funds, financial statement shall be prepared by that original authority or original authority that is in charge of fund for the period in which the budget or fund remain undivided.

(Deleted)

(Date in which financial statement must be prepared)
For government affiliated authority or fund closing prior to ending of fiscal year, the said authority or competent authority in charge of fund shall settle all accounts on the date in which the authority or fund close. However, the authority consolidating the financial statement shall be required to incorporate all accounts settled by said authority or fund into the financial statement of that year.

(Financial Statements of Departments)
Financial statement of departments by authority shall be compiled by each departmental authority. During compilation, tables for execution of budget shall be prepared according to actual facts, other financial reports pertaining to execution of budgets, explanation as to the processes in execution of budget, execution of policy plans, explanation as to efficacy of business plans and related important statistical analysis shall also be attached.
Financial statement of department by special fund shall be compiled by authority that is in charge of the fund in accordance with the foregoing paragraph.

(Deleted)

(Financial Statement of Enterprise Fund and Financial Statement of affiliated division of National Administered Enterprise)
Financial statement of subordinate department relating to financial statement of enterprise fund particularly the actual progress of execution of business plan shall be prepared in accordance with financial records, including attachment of explanations as well as business report and relevant important statistical analysis, delivered to each relevant authorities.
Each affiliated division of national administered enterprise, whose capital is independent of each other, profit and loss is calculated individually or re-invested into other businesses, or its share interests exceed 50% shall attach a sub-financial statement for each division or enterprise.

(Main content of Financial Statement of Enterprise Fund)
The main content to be included in financial statement of subordinate department relating to financial statement of enterprise fund are as follows:
1. Calculation of income;
2. Circumstances of cash flows;
3. Asset and liabilities;
4. Proposal for the profit distribution or loss replenishment.
Financial statement of business income and expenses in Subparagraph 1 of foregoing Paragraph shall make a due comparison between business circumstances and accounting standard as prescribed in the budget; Where cost accounting is applicable, explanation of cost calculation, unit cost, workforce employed, amount of material and relevant data shall be attached, while variable cost and fixed cost shall be analyzed.
Loss and gain of each accounts in paragraph 1 subparagraph 3 relating to fixed asset, long-term liabilities and capital re-investment and its detailed content shall be separately compared with the budget amount.

(Financial Statements of Special Funds)
Settlement of other special fund within the financial statement of subordinate department, except for enterprise fund shall be prepared pursuant to the statutory provisions of preceding two articles.

(Annual receipt and payment summary of the Treasury)
Annual receipt and payment summary of the Treasury regarding all the actual cashieringactivities up until the end date of that fiscal year shall be compiled and recorded by the competent authority of the Treasury.
The summary in the foregoing subparagraph 1 shall be delivered within 15 days after the end date of fiscal year to Central BAS Authority and Ministry of Audit for auditing purposes.

(Various financial statements prepared by competent authorities)
Parts of the financial statements of competent authority relevant to principal authority shall be compiled according to actual circumstances as it stand at the end of fiscal year; parts relevant to affiliated authorities shall be compiled according to the financial statements submitted for that fiscal year.

(Delivery of financial statements)
Financial statements of each authority, once signed or stamped by Chief Officer of authority and accounting officer in charge shall be delivered to the controlling superior authority and audit office.

(Handling of financial statements by competent authorities)
After receiving said financial statements in preceding article, competent authority shall immediately commence audit and consolidation, and amend contents therein where inadequacies or errors have been discovered, and deliver to Central BAS Authority together with financial statement of department.
The events amended in foregoing paragraph shall be notified to authority that originally compiled the financial statement and audit office.
General financial statements compiled by Central BAS Authority shall be governed mutatis mutandis by foregoing two paragraphs.

(Handling of financial statements by Central BAS Authority)
Central BAS Authority shall compile a general financial statement according to the financial statement of each department, the annual receipt and payment summary of the Treasury and general accounting records, the financial statement of subordinate department including business or non-business entities shall be compiled into a consolidated table and submitted to Executive Yuan, with attachment of explanation, together with the general financial statement. After being passed by the Executive Yuan Council, they may be proposed in the Control Yuan within four months from the end of a fiscal year.
Time limit, procedure for compilation, delivery of financial statements by each level of authority shall be prescribed by the Executive Yuan.

(Special budget)
Financial statements relating to income and expense of special budget shall be compiled pursuant to the statutory provisions of this Act after the expiration of budget execution; for execution of budget that extend over two fiscal years, its financial statement shall be compiled into financial statement of prescribed year by competent authority pursuant to procedures stipulated in Accounting Act.
Competent authority shall submit the annual financial statements to the Legislative Yuan for deliberation, in the case of a foundation with the accumulated government-donated fund exceeding over 50%, and a foundation being formed by the Japan’s remaining assets due to Japan retreat and Taiwan takeover.