(Principles governing design of accounting system)
The design of the accounting system shall accord to the nature, actual business circumstances, and prospective development of accounting activities. The financial reports required shall be determined in advance, which is used as reference to determine the accounts, books, statements and accounting vouchers that is required to be established.
Authorities or funds of the same or similar nature shall have consistent accounting systems. Government basic accounting except for cashiering activity of the treasury, shall adopt a system of accounting on the accrual basis.

(Procedures for set-up, approval of Accounting system)
The design and approval of general accounting system of the central government shall be undertaken by Central BAS Authority.
The general accounting systems and uniform accounting provision of local governments shall be designed by local BAS Authority and approved and promulgated by superior BAS Authority in control.
The accounting system of each Authority shall be designed by accounting department. After being reported to and signed by its Chief officer, it shall be approved and promulgated by the BAS Authority of the local governments.
Design of accounting system in the foregoing paragraph shall be discussed and approved by affiliated authority and controlling Audit office; similarly in the event of amendments.
Explanatory notes and precedents of accounting systems and uniform provisions dealing with accounting activities shall be approved by the Authority in charge of promulgation.

(Content of Accounting System)
Design of accounting system in the foregoing two Articles shall expressly provide the following items:
1. Scope of accounting system.
2. Types and written form of financial reports.
3. Classification and codification of each account.
4. Types and form of financial books.
5. Types and form of accounting vouchers.
6. Procedures of dealing with accounting activities.
7. Internal audit procedures.
8. Other matters, which are required.

(Governing law of Accounting System)
Accounting systems shall not in any way conflict with this Act, Budget Act, Financial Statement Act, Audit Act, Treasury Act and Statistic Act, etc. Accounting system of departmental accounting and sub-accounting shall not in anyway conflict with accounting system of general accounting; Accounting system of Subordinate Departmental Accounting and its sub-accounting shall not in anyway conflict with accounting system of controlling departmental accounting or its sub-accounting.

(Purposes of Financial Reports)
All types of financial reports shall be distinguished by fiscal years and according to the following purposes be compiled into periodic or non-periodic reports; statistical and mathematical measures may be adopted to give appropriate analysis, explanations or forecasts:
1. External reports shall be compiled in accordance with executive, control, legislative purposes and for understanding of people.
2. Internal reports shall be compiled in accordance with budget execution circumstances and progress, management, control and decision-making purposes.

(Content of Financial Reports)
Financial reports are categorized into following two types:
1. Static financial report: records financial position on a specific date.
2. Dynamic financial report: records variation of financial position within a specific period.
Where there is a need for comparison between static and dynamic financial reports, a separate comparison table may be compiled.

(Types of Financial Report)
The static and dynamic financial reports of departmental accounting and subordinate departmental accounting shall adhere to the principle of complete expression and accounting system of accounting activities listed in Article 5 and Article 7.
The static financial reports shall comprise of the following statements separately compiled according to facts:
1. Balance sheet
2. Cash balance statement
3. Note balance statement
4. Security balance statement
5. Certificates or other supporting documents balance statement,
6. Taxable item balance statement
7. Statement of government bond
8. Catalogue of properties and special properties
9. Catalogue of fixed liabilities
The dynamic financial reports shall comprise of the following statements separately compiled according to facts:
1. Statement of annual revenue or accumulated allocations
2. Statement of cash inflow and outflow
3. Statement of notes receipts and payment
4. Statement of security receipts and payment
5. Statement of receipts and payment of certificates and other supporting documents
6. Statement of taxable item receipts and payment
7. Statement of government bond issuance and principle and interest of government bond
8. Statement of increase and decrease of properties or special properties
9. Statement of increase and decrease of fixed liabilities
10. Statement of operating cost
11. Income statement
12. Cash flow statement
13. Retained earning statement

(Financial reports of extraordinary events)
Statements for financial report that are required to be compiled for extraordinary events shall be compiled by BAS Authority according to facts with reference to provision of preceding Article.

(Preparation of statements in financial report)
Statements comprising financial report that is required to be compiled by departmental accounting shall be segregated according to fund. For the purpose of simplification, statements may be presented in column form for each fund.

(Sub-Account Financial report)
Statistic and dynamic financial reports which is required to be compiled by sub-accounting entity shall be prescribed within the accounting system according its need and the needs of departmental accounting entity it controls or subordinate departmental accounting entity.

(Financial report and reduction or merger of statements)
Financial reports and statements in Article 22 and Article 25 may be reduced or merged according to the factual needs after each government BAS Authority meet and discuss with departmental accounting authority or chief officer of subordinate departmental accounting authority or accounting officers in charge.

(General Financial Report)
General financial report of government shall comprise of consolidated reports from Article 21 to Article 23. However accounts that are dealt with in whole or collectively pursuant to Article 9, paragraph 3 may be produced into financial report from financial records.

(deleted)

(Financial Reports shall be compiled based on financial records)
All types of financial reports shall be compiled based on financial records, and be expressed in a manner to facilitate review.

(Explanation of discrepancy Statement)
Where the figures in the report of non-government authorities engaging in government activities differ from the accounting officer’s report, the accounting officer shall additionally prepare a explanation of discrepancy statement.

(Time limit in which to compile financial report)
Each departmental accounting authority and subordinate departmental accounting authority shall compile and deliver financial reports within the following time limits:
1. Daily reports shall be delivered next day.
2. Five-day reports shall be delivered within 2 days from the end of the five-day period
3. Weekly and ten-day reports shall be delivered within 3 days from the end of the week or ten-day period.
4. Monthly and quarterly reports shall be delivered within 15 days from the end of the month or three-month period, unless otherwise stipulated by statutory provisions.
5. Half-yearly reports shall be delivered within 30 days from the end of the half-year period, annual reports shall be governed by provisions of Financial Statement Act.
The time limits stipulated in Subparagraph 1 to subparagraph4 shall apply to sub-accounting and sub-account of subordinate departmental accounting.
Financial reports as stipulated in Paragraph 1, subparagraph 5 shall be compiled by departmental accounting authority or subordinate departmental accounting authority after revision; the time limits in which to prepare or deliver the reports may follow the time limits in which to deliver reports by each sub-accounting authority plus the actual postal period required; the time period in which to prepare and deliver financial report produced by authorities by adopting machines to process financial information shall be determined by controlling BAS Authority.

(Content of Financial Report)
For financial reports in subparagraph 1 to subparagraph 4 of foregoing Article relating to the Authority itself, the daily reports shall record accounting events which are entered into the books at the end of the day; five-day, weekly, ten-day, monthly and quarterly reports shall record accounting events which are entered into the books on the last day of each respective period. In the case of the authority compiling reports for affiliated authority, the daily reports shall record accounting events which are recorded on the daily reports of affiliated authorities received by the authority at the end of the day; five-day, weekly, ten-day, monthly and quarterly reports shall record accounting events which are recorded on the five-day, weekly, ten-day, monthly and quarterly reports of affiliated authorities received by the authority on the last day of each respective period. However, monthly or quarterly reports that close at the end of month or quarter shall not be within this limitation.

(Title of Accounts)
The accounts shall depend on the events which are required to be incorporated into different types of financial reports, the title of the accounts shall reflect the nature of the event, if the nature of the account is the same as budget or annual report accounts, its title shall be consistent with the title of accounts in budget or financial statement.

(Control and Subsidiary Account)
Accounts of summary statements and subsidiary statements shall reflect control-subsidiary relationship, wherein those of the summary statements shall be the controlling accounts, and those of the subsidiary statements shall be the subsidiary accounts.

(Principle of consistency in accounts)
For the convenience of compilation and comparison, all authorities of central governmental shall ensure the consistency of accounts having the same event or similar nature and the compatibility between related accounts.
Accounts of local government having the same event or similar nature as Central government shall follow those determined by the Central government. Related account of local government shall be made consistent and compatible with accounts of Central government.

(Establishment of Accounts)
The establishment of accounts shall adopt both events on cash basis and accrual basis as subjects of compilation.

(Numbering of accounts)
Accounts shall be classified and numbered on the basis of reports included and the nature thereof.

(Prohibition against change of account title)
Account title once prescribed shall not be changed unless with the approval of the BAS Authority or BAS officers in charge.
Approval of change in the account title in the foregoing paragraph shall be notified to controlling Audit Authority.

(Category of accounting books )
Accounting books are categorized into following two categories:
1. Account book: books of records containing evidence required for compilation of financial report.
2. Reference Book: books of records not for purpose of compiling financial reports, but to facilitate the review of accounting events or handling of accounting activities.
For financial data processed by machine, the records within the storage of the machine is deemed account book.
The records within the storage of the machine in foregoing Paragraph once processed shall be copied with a digital control number and labeled in written form, signed or stamped by accounting officers in charge after audit.

(Classification of accounting book)
Account book are categorized into following two categories:
1. Journal books: The book, which predominately record sequence of accounting events as it occurs chronologically, each individually named book
2. Ledger books: The book, which predominately record accounting events based on the classification of the events, each individually named account.

(Books of account columns)
The journal book or ledger book may be set up in special columns as may be required depending on actual needs and for the purpose of convenience.

(Categories of Journal Book)
The journal book is categorized into the following two types:
1. General Journal Book: The book which is set up to record all events chronologically or to record the closing figures in subparagraph 2 chronologically, such as daily entry book.
2. Special Journal Book: The book which is set up to record special events chronologically, such as Annual Revenue, Payment and Receipts book, Allocation Payment and Receipt book, Cash Inflow and Outflow book and other books relating to recording of special events.

(Category of Ledger Book)
The ledger book is categorized into the two following types:
1. General ledger books: The ledger book, which is set up to record all general events with the main purpose to compile general financial report.
2. Subsidiary ledger books: The ledger book which is set up to record all special events by subsidiary classes or that is recorded into separate accounts with the main purpose to compile subsidiary financial report, such as Annual revenue Ledger, Allocations Ledger, Property Ledger and other Ledgers relating to special events.
General ledger books having subsidiary ledger book shall set up control accounts to record the aggregate of subsidiary accounts. However, Property Ledgers shall set up separate controlled account apart from being entered into the balance sheet pursuant to Article 29.

(Merger of accounting books)
For the purpose of simplification, government BAS Authorities may merge the books of general accounting, departmental accounting, subordinate departmental accounting; and special journal book and subsidiary ledger book of Sub-Accounting during the compilation depending on the circumstances.

(Set up of subsidiary ledger books and special Journal books)
Apart from set up of general journal book and general ledger book in the accounting books of departmental accounting or subordinate departmental accounting, special Journal book and special Ledger books shall be set up by each government BAS authority, by discussing with departmental accounting or subordinate departmental accounting authority or controlling Chief officer of fund and accounting officer in charge in accordance with actual need and circumstances.
Reference book of each departmental accounting or subordinate departmental accounting authorities, apart from those required by BAS authorities to be set up, shall be set up by each authority or controlling Chief officer of fund and accounting officer in charge in accordance with actual need and circumstances.

(Applications of Sub-Account Books)
For accounting activities of sub-accounting that is relatively complex, the type of books shall be governed by accounting rules of departmental accounting or subordinate departmental accounting. For accounting activities that is relatively simple, only journal books and necessary reference book is required to be set up.

(Copy, submission of journal book of Sub-account)
Each sub-accounting authority shall regularly copy the contents of the journal book and submit to the controlling departmental accounting authority or subordinate departmental accounting authority for entry into the account; For accounting activities that is relatively complex, the controlling departmental accounting authority or subordinate departmental accounting authority may discuss with each government BAS authority and controlling audit authority to obtain approval as to copy the creditors or debtors of each account for each period and the sum of each account and submit to the controlling departmental accounting authority or subordinate departmental accounting authority for entry into the account.

(Establishment of General accounting Books)
Books of General accounting shall be established depending on the information that is required to be included in the general financial report; its book of reference shall be established depending on the needs in the process of handling activities.

(Preparation of Reference Book)
Special Property Management authority shall prepare reference books, such as index, photographs, drawings and other reference records for ease of verification regarding valuable chattel properties; Reference books of maps, drawings etc. shall be prepared regarding real estate properties. The form of reference books shall be decided by BAS Authority of each local government.

(Accounting document)
Accounting documents shall be categorized into following two categories:
1. Source document: The document which prove the course of an event as basis for the recording document.
2. Recording document: The document which proves the responsibility of accounting officers handling accounting events and which serve as basis of account keeping.

(Source Document)
The source document is categorized into the following types:
1. Orders that grant approval to appropriation of budget reserve fund and budget statements and flow of allocations in between budgetary accounts pursuant to statutory provisions.
2. Documents in relation to payment, receipt and transfer of cash, notes, securities.
3. Statements, payment slips in relation to salary, wage, perk, allowance, travel expenses, welfare fund etc.
4. Invoices and receipts relating to purchase and restoration of properties; postage, transport, printing and consumables etc.
5. Statements, slips relating to custody, dealing, transfer, supply, application of properties.
6. Contracts or other related documents relating to sales, purchase, lending, borrowing and service.
7. Supporting documents relating to saving, exchange and investments etc.
8. Supporting documents and property catalogues relating to public property, confiscated property, gift or legacies.
9. Documents relating to determining taxes or handling pursuant to other statutory provisions, documents relating to handling of taxes and receipt and delivery of vouchers.
10. Documents relating to circumstances of fines and compensations.
11. Laws and regulations relating to issuance of government bonds, documents relating to payment of principal and interests and table calculating premium and discounts.
12. Invoices, receipts relating to calculating of costs.
13. Documents in support of dealings of profit and losses.
14. Financial statements.
15. Invoices, receipts or other supporting documents which proves the events occurred and circumstances stipulated in Article 3.
All supporting documents affixed to the aforementioned documents are viewed as a part thereof.

(Recording document)
Recording document is categorized into following three types:
1. Receipt voucher
2. Payment voucher
3. Transfer voucher
The types of vouchers shall be distinguished from one another by color or any other means.

(Recording of Voucher)
The following items shall be recorded in a voucher:
1. Day, month, year
2. Account title
3. Particulars
4. Amount in basic monetary unit. Those amounts not in basic monetary unit shall provide currency type, amount and exchange rate.
5. Types, number, serial numbers and date of relevant source documents.
6. Serial number of the voucher
7. Other items for reference.

(Voucher signatures and stamps)
Vouchers shall be invalid unless signed or stamped by the following officers, however where any of the officer is non-existent in practice, signature or stamp shall not be required:
1. Chief officer of the authority or officer authorized to sign on behalf.
2. Senior officer or officer in charge of business.
3. Accounting officer in charge or officer authorized to sign on behalf.
4. Cashiering officer in charge of matters relating to receipt, payment, custody and transfer of cash, note and securities.
5. Management officer in charge of matters relating to the increase and decrease, custody and transfer of properties.
6. Voucher issuer
7. Voucher registrar
Those officer in Subparagraph 1, 2 and 5 in preceding Paragraph that have expressed to be responsible from the source document may not be need to sign or stamp on the voucher.

(When Voucher is not required to be prepared)
If the form of source documents meets the requirements of recording documents, source document may be used as recording document in lieu without need to prepare vouchers.

(When Voucher is not required to be prepared)
For sub-accounting authority that conduct simple accounting activities, its source document may be used as recording document after it has been signed or stamped by Chief Officer of Authority and accounting officer in charge, without need to prepare vouchers.