Provisions on the Treatment of the Connection between the Old and New Accounting Systems of Trade Unions

Provisions on the Treatment of the Connection between the Old and New Accounting Systems of Trade Unions

Our Ministry has comprehensively revised the Trade Union Accounting System (2009 No. 7) (hereinafter referred to as the original system) and issued a new Trade Union Accounting System (2021 No. 7) (hereinafter referred to as the new system) on April 14, 2021, which will come into force on January 1, 2022. In order to ensure a smooth transition between the old and new accounting systems, the following are provisions on the convergence of the implementation of the new system by trade unions at all levels:

General requirements for the convergence of old and new 1. systems

(I) From January 1, 2022, trade unions shall conduct accounting and prepare financial statements in strict accordance with the new system.

(II) trade unions shall, in accordance with these Provisions, do a good job in linking up the old and new accounting systems, mainly including the following aspects:

1. Prepare the account balance table as of December 31, 2021 based on the original account.

2. Establish a new account on January 1, 2022 according to the new system.

3. According to the requirements of these regulations, the account balance of the new account shall be registered, including transferring the original account balance to the new account account (see the attached table for the comparison of the old and new system accounts), registering the unrecorded items in the new account, adjusting the balance of the relevant new account, and incorporating the relevant data of the infrastructure account set into the new account. The original account account refers to the account set up in accordance with the provisions of the original system.

4. According to the balance of each account in the new account after registration and adjustment, prepare the account balance table on January 1, 2022 as the opening balance of each account in the new account.

5. According to the opening balance of each account in the new account, the balance sheet as of January 1, 2022 shall be prepared in accordance with the new system.

The (III) trade union shall conduct an inventory of assets and further clean up, verify and classify the data of assets such as fixed assets, intangible assets and inventory items. According to relevant regulations, if it is recognized as state-owned assets according to law, the balance of the account corresponding to the state-owned assets in the original account shall be transferred to the "state-owned assets" detailed account of the relevant asset account in the new account; If it is recognized as trade union assets according to law, the balance of the account corresponding to the trade union assets in the original account shall be transferred to the "trade union assets" detailed account of the relevant asset account in the new account.

(IV) timely adjustment of accounting information system. The trade union shall, in accordance with the requirements of the new system, update and debug the original accounting information system in a timely manner to achieve accurate data conversion and ensure the orderly convergence of the old and new account sets.

2. transfer the original account account account balance to the new account.

(I) asset class.

1. "Cash on hand" and "Bank deposits" accounts. The new system sets up "cash on hand" and "bank deposits" accounts. At the time of transfer, the trade union shall transfer the balance of the "cash on hand" and "bank deposits" accounts of the original account to the "cash on hand" and "bank deposits" accounts of the new account. Among them, if there are escrow funds, the amount of the original account "cash on hand" and "bank deposits" shall also be transferred to the new account "cash on hand" and "bank deposits" under the "escrow funds" line item.

2. "Financial refundable amount" and "investment" accounts. The new system sets up "financial refundable amount" and "investment" accounts, the accounting content of which is basically the same as that of the above-mentioned corresponding accounts in the original account. At the time of transfer, the trade union shall transfer the balance of the above-mentioned account of the original account directly to the corresponding account of the new account.

3. "Inventory items" account. The new system sets up the account of "inventory items" and stipulates that the asset fund should be recognized at the same time when inventory items are acquired. At the time of transfer, the trade union shall transfer the balance of the "inventory items" account of the original account directly to the "inventory items" account of the new account, and at the same time, transfer the corresponding balance of the "balance" account to the "asset fund-inventory items" account of the new account according to the balance of the "inventory items" account of the original account.

4. "Superior funds receivable" account. The new system sets up a "higher-level funds receivable" account, the accounting content of which includes the trade union funds and special subsidies allocated or transferred by the higher-level trade union receivable and not received by the trade union. At the time of transfer, the trade union shall, in accordance with the relevant provisions, transfer the trade union construction fund in the balance of the "superior funds receivable" account of the original account to the "other receivables" account of the new account, and transfer the difference between the balance of the "superior funds receivable" account of the original account minus the construction fund to the "superior funds receivable" account of the new account.

5. "Subordinate funds receivable" account. The new system has set up a "subordinate funds receivable" account, the accounting content of which includes the trade union funds receivable from the trade union at the lower level. At the time of transfer, the trade union shall, in accordance with the relevant provisions, transfer the trade union construction fund in the balance of the "subordinate funds receivable" account of the original account to the "other receivables" account of the new account, and transfer the difference between the balance of the "subordinate funds receivable" account of the original account minus the construction fund to the "subordinate funds receivable" account of the new account.

6. "Lending" account. The new system does not have a "lending" account, but a "other receivables" account. At the time of transfer, the trade union shall transfer the balance of the "loan" account of the original account to the "other receivables" account of the new account.

7. "Other receivables" account. The new system sets up the "other receivables" account, which includes the accounting content of the original account "other receivables" account. At the time of transfer, the trade union shall transfer the balance of the "other receivables" account of the original account to the "other receivables" account of the new account.

8. "Construction in progress" account. The new system sets up the subject of "construction in progress. At the time of transfer, for construction projects accounted for in the "construction in progress" account in the original account, the trade union shall transfer the balance of the "construction in progress" account in the original account to the "construction in progress" account in the new account. For construction projects that are not accounted for in the "construction in progress" account of the original account, according to the new system, no longer separately accounted for through the infrastructure account, the trade union shall incorporate the relevant data of the infrastructure account into the new account, see the specific treatment of the fifth part of this provision.

9. "Fixed assets" account. The new system sets up a "fixed assets" account. As the value standard of fixed assets in the new system has been improved compared with the original system, some of the physical assets accounted for as fixed assets in the original account will be converted into inventory items in accordance with the new system. At the same time, the new system set up the "intangible assets" account, the original "fixed assets" account of intangible assets, need to be transferred to the new account of the "intangible assets" account. At the time of transfer, the trade union shall analyze the balance of the "fixed assets" account in the original account according to the re-determined fixed assets catalogue:

(1) For physical assets that do not meet the fixed asset recognition criteria in the new system, the corresponding balance shall be transferred to the "Inventory Items" account of the new account, and the corresponding "Fixed Fund" account balance shall be transferred to the "Asset Fund-Inventory Items" account of the new account.

(2) For intangible assets originally accounted for in the "fixed assets" account, the corresponding balance shall be transferred to the "intangible assets" account of the new account, and the corresponding "fixed fund" account balance shall be transferred to the "asset fund-intangible assets" account of the new account.

(3) For those who meet the criteria for the recognition of fixed assets in the new system, the corresponding balance shall be transferred to the "Fixed Assets" account of the new account, and the corresponding "Fixed Fund" account balance shall be transferred to the "Asset Fund-Fixed Assets" account of the new account.

10. "Zero balance account amount" account.

The new system has set up a "zero balance account amount" account. Since there is no balance at the end of the year in the "Zero Balance Account Amount" account of the original account, there is no need to transfer the account.

(II) liability class.

1. "Wages payable (retirement benefits)", "Local (departmental) allowances payable", "Other personal income payable" subjects.

The new system has set up a "salary payable to employees" account, the accounting content of which includes the accounting content of the original account "salary payable (retirement fee)", "local (departmental) allowance payable" and "other personal income payable. At the time of transfer, the trade union shall transfer the balance of the "wages payable (retirement fee)", "local (departmental) allowance payable" and "other personal income payable" accounts of the original account to the "employee compensation payable" account of the new account.

2. "Funds payable to superiors" account.

The new system sets up a "funds payable to superiors" account, the accounting content of which includes the funds allocated by the trade union to the higher trade union. At the time of transfer, the trade union shall, in accordance with the relevant provisions, transfer the trade union construction fund in the balance of the "funds payable to the superior" account to the "other payables" account of the new account, and transfer the difference between the balance of the "funds payable to the superior" account of the original account minus the construction fund to the "funds payable to the superior" account of the new account.

3. "Subordinate funds payable" account.

The new system has set up a subject of "funds payable to lower levels", which includes the subsidies payable by trade unions to lower-level trade unions and the funds allocated by trade unions that should be transferred to lower-level trade unions. At the time of transfer, the trade union shall, in accordance with the relevant provisions, transfer the trade union construction fund in the balance of the "subordinate funds payable" account of the original account to the "other payables" account of the new account, and transfer the difference between the balance of the "subordinate funds payable" account of the original account minus the construction fund to the "subordinate funds payable" account of the new account.

4. "Borrowing" account.

The new system does not have a "borrowing" account, but a "other payables" account. At the time of transfer, the trade union shall transfer the balance of the "Borrowing" account of the original account to the "Other Payables" account of the new account.

5. "Other payables" account.

The new system sets up the "Other Payables" account, which includes the accounting content of the original account "Other Payables" account. At the time of transfer, the trade union shall transfer the balance of the "other payables" account of the original account to the "other payables" account of the new account.

6. "Escrow funds" account.

The new system sets up the subject of "escrow funds. At the time of transfer, the trade union shall transfer the balance of the "escrow funds" account of the original account to the "escrow funds" account of the new account.

(III) net asset class.

1. "Fixed funds", "funds occupied by construction in progress" and "investment funds" accounts.

The new system sets up the "asset fund" account, the accounting content of which includes the accounting content of the original account "fixed fund", "funds occupied by construction in progress" and "investment fund. At the time of transfer, the trade union shall transfer the balances of "fixed funds", "funds occupied by construction in progress" and "investment funds" to the relevant line item of "asset funds" in the new account:

(1) The trade union shall analyze the balance of the "fixed fund" account in the original account and transfer the corresponding balance of inventory items that no longer meet the fixed asset recognition criteria of the new system to the "asset fund-inventory items" account in the new account; transfer the corresponding balance of intangible assets accounted in the "fixed assets" account of the original account to the "asset fund-intangible assets" account of the new account; Transfer the balance of the original account "fixed fund" account minus the amount transferred to the new account "asset fund-inventory items" and "asset fund-intangible assets" account to the new account "asset fund-fixed assets" account.

(2) The trade union shall transfer the balance of the "investment fund" account in the original account to the "asset fund-investment" account in the new account.

(3) The trade union shall transfer the balance of the "funds occupied by construction in progress" account in the original account to the "asset fund-construction in progress" account in the new account.

2. "Special purpose fund" account.

The new system has set up a "special fund" account. The accounting content of this account no longer includes the income retention fund and the financial special fund. Under the new system, the detailed accounts of "income retention fund" and "financial special fund" are no longer set up. At the time of transfer, the trade union shall transfer the balance of the "special fund-equity protection fund" account of the original account to the "special fund" account of the new account, and transfer the balance of the "special fund-income retention fund and financial special fund" account of the original account to the "trade union fund balance" account of the new account.

3. "Reserve" subjects.

The new system does not set up a "reserve fund" account. At the time of transfer, the trade union shall transfer the balance of the "reserve fund" account of the original account to the "trade union fund balance" account of the new account.

4. "Balance" account.

The new system does not have a "balance" account, but does have a "union fund carry-over",

"Trade union fund balance", "financial allocation carry-over", "financial allocation balance" subjects. At the time of transfer, the trade union shall transfer the balance of the "balance" account in the original account (net of the amount of the "asset fund-inventory items" account transferred to the new account) to the relevant account in the new account, taking into account the budget preparation and implementation:

(1) The grass-roots trade union shall, on the basis of the results of the analysis, transfer the balance of funds that meet the nature of the carry-over to the "trade union funds carry-over" account of the new account; transfer the remaining balance of funds to the "trade union fund balance" account.

(2) Trade unions at or above the county level shall, according to the analysis results, transfer the fund balance that conforms to the nature of financial appropriation carry-over to the subject of "financial appropriation carry-over"; Transfer the fund balance that conforms to the nature of financial appropriation balance to the subject of "financial appropriation balance"; Transfer the fund balance that conforms to the nature of trade union fund carry-over to the subject of "trade union fund balance"; Transfer the remaining fund balance.

(IV) income and expenditure categories.

Since there is no balance at the end of the year in the income category and expense category accounts in the original account, no transfer processing is required. From January 1, 2022, income and expenditure accounts shall be set up and accounted for in accordance with the new system.

(V) other requirements.

If the trade union has other balances in the original account that are not listed in this provision, it shall be transferred to the corresponding account in the new account in accordance with this provision. If the account of the new account has a detailed account, the balance of the corresponding account in the original account shall be analyzed and transferred to the relevant detailed account of the corresponding account in the new account.

When making transfers between the old and the new, the trade union shall prepare a working draft of the transfer and use the corresponding original account balance transferred to the new account and the basis for splitting the original account balance as the original voucher.

3. to register the original unrecorded items in the new account.

(I) asset class.

1. Intangible assets.

When the trade union changes the old and new systems, it shall record the intangible assets not recorded before December 31, 2021 in the new accounts in accordance with the provisions of the new system. When registering a new account, the "Intangible Assets" account is debited and the "Asset Fund-Intangible Assets" account is credited according to the determined cost of intangible assets.

(B) Other assets.

When the trade union changes the old and new systems, it shall record other assets not recorded before December 31, 2021 in the new accounts in accordance with the provisions of the new system. When registering a new account, the relevant asset account is debited and the relevant net asset account is credited, respectively, in accordance with the assets identified and their costs.

(II) liability class.

When the trade union changes from the old to the new system, it shall record the liabilities not recorded before December 31, 2021 in the new accounts in accordance with the provisions of the new system. When registering a new account, the amount of the liability determined is debited to the "union fund balance" account and credited to the related liability account.

(III) other matters.

If the trade union has other matters not recorded before December 31, 2021, it shall register the corresponding accounts of the new accounts according to these provisions.

When the trade union makes up for the unrecorded items of the new account, it shall prepare the bookkeeping voucher and take the confirmation basis of the supplementary registered items as the original voucher.

4. to adjust the balance of the relevant accounting account of the new account.

(I) the corresponding balance of the collected issue inventory item.

The trade union shall analyze the inventory items that do not meet the fixed asset confirmation standard of the new system and are accounted for in the "fixed assets" account of the original account. For the inventory items that have been collected and issued, the cost shall be written off at one time. According to the determined cost, the "asset fund-inventory items" account shall be debited, the "inventory items" account shall be credited, and the registration and management of relevant physical assets shall be done at the same time.

(II) back up depreciation.

The new system sets up a "cumulative depreciation" account to account for the accumulated depreciation of fixed assets charged by the union. The trade union shall comprehensively check the estimated useful life, useful life and useful life of fixed assets that meet the new system's fixed asset recognition criteria as of December 31, 2021, and make up depreciation for fixed assets that have not been depreciated in the previous period on January 1, 2022. According to the accrued depreciation amount, debit the "asset fund-fixed assets" account and credit the "accumulated depreciation" account.

Amortization of (III) supplements.

The new system sets up a "cumulative amortization" account to account for the cumulative amortization of intangible assets charged by the union. The trade union shall comprehensively check the expected useful life, useful life and useful life of intangible assets as of December 31, 2021, and make up for amortization of intangible assets that have not been amortized in the previous period on January 1, 2022. According to the accrued amortization amount, the trade union shall debit the "asset fund-intangible assets" account and credit the "accumulated amortization" account.

(IV) write-off of the corresponding balance of escrow funds that do not meet the requirements of the new system.

The accounting content of the "escrow funds" account of the new system has been adjusted compared with the original system. For the escrow funds that do not meet the provisions of the new system, the trade union shall write off the corresponding balance and debit the "escrow funds" account and credit the "cash on hand" and "bank deposits" accounts according to the determined amount. When the union adjusts the opening balance of the new account, it shall prepare the bookkeeping voucher and use the basis for confirmation of the adjustment as the original voucher.

5. incorporates data related to infrastructure sets into new accounts

After the implementation of the new system, the union's capital construction projects are accounted for through the new account of "construction in progress" account, no longer implement the "State-owned construction unit accounting system" (Caihui word [1995] No. 45). When the old and new system is changed, the trade union shall incorporate the relevant data of the capital account into the new account. When the union incorporates the balance of the relevant account in the original base account as at 31 December 2021 into the new account:

According to the balance of "investment in construction and installation works", "investment in equipment", "investment to be amortized" and "prepaid works" in the infrastructure account, debit the relevant detailed accounts of "construction in progress" in the new account; according to the balance of "cash", "bank deposit", "zero balance account amount", "financial returnable amount", "other receivables" and other accounts in the capital account, respectively debit the new account "cash on hand", "bank deposit", "zero balance account amount", "financial returnable amount", "other receivables" and other accounts; according to the balance of "capital construction investment loan", "project payable" and "other payables" in the capital construction account, credit the "other payables" account in the new account; analyze the balance of "capital construction appropriation" account in the capital construction account: according to the part belonging to the financial appropriation carry-over balance, credit the "financial appropriation carry-over" and "financial appropriation balance" account in the new account, according to the part attributable to the trade union fund carry-over, credit the "trade union fund carry-over" account in the new account; According to the balance of "construction and installation project investment", "equipment investment", "investment to be amortized", "prepaid project payment" and "assets delivered for use" in the infrastructure account, credit the relevant detailed accounts of "asset fund" in the new account; According to the balance of other accounts in the infrastructure account, analyze and adjust the corresponding accounts in the new account; credit or debit the "union fund balance" account in the new account according to the above-mentioned debit and credit differences. After the infrastructure consolidation, the trade union may meet the needs of the preparation of the final accounts for the completion of the capital construction project by setting up detailed accounts related to the capital construction project under the relevant accounting accounts of the new accounts or adding marks, or setting up auxiliary accounts for the capital construction project. When the trade union merges the capital account into the new account, it shall prepare the bookkeeping voucher, and the basis for transferring the balance of each account of the capital account to the relevant account of the new account shall be used as the original voucher.

New and old convergence of 6. financial statements

(I) prepare a balance sheet and a statement of state-owned assets as of January 1, 2022.

The trade union shall, according to the account balance of the new account on January 1, 2022,

According to the new system, the balance sheet and state-owned assets statement of January 1, 2022 are prepared (only the "beginning balance" of each item is required).

(II) the preparation of financial statements for 2022.

Trade unions should prepare financial statements for 2022 in accordance with the new system. In preparing the 2022 income and expenditure statement and the cost and expense statement, the previous year comparison is not required.

The trade union shall, according to the balance of the new account account on January 1, 2022, fill in the item "carry-over balance of funds at the beginning of the year" in the income and expenditure statement of 2022 and the item "carry-over balance of financial allocation at the beginning of the year" in the income and expenditure statement of financial allocation.

Attached table: Comparison table of accounts of the old and new systems