Journalism

Dalian accounting firm reminds government and institution accountants: detailed reply of Ministry of Finance on accounting treatment regulations of occupational annuity fund related business

2021-09-15

On September 8, the state has just issued the regulations on accounting treatment of occupational pension fund related businesses of government and public institutions, which will come into effect on January 1, 2022.


Immediately after that, a detailed answer to the reporter's questions was published today, which involved a lot of practical operation contents. Dalian accounting firm specially extracted it for reference of accounting partners in need.Let's review the document first.


The following is the report of the Ministry of Finance on September 13, 2021 Occupational pension fund of government and institution Relevant business accounting treatment provisions "in response to the reporter's question, which involves a lot of practical operation content, Dalian accounting firm reminds partners to click collection Oh!!!


Regulations on accounting treatment of occupational annuity fund related business of government and institution

Answer questions from reporters

Q: what is the main content of the regulations?

A: the regulation consists of the main body and the appendix.


The main body consists of five parts,

The first is the scope of application and basic principles. It mainly clarifies that the "provisions" are applicable to occupational annuity funds operated by agencies at all levels, and takes "social insurance fund accounting system" as the benchmark system.


The second is the setting of accounting subjects and the instructions for their use.


The third is the accounting treatment regulations of main businesses and events, which regulate the accounting treatment of seven types of businesses and events that cannot be implemented with reference to the accounting system of social insurance fund.


The fourth is the financial statements and preparation instructions, which mainly standardize the presentation items and preparation instructions of the balance sheet and income and expenditure statement of occupational pension funds, and standardize the disclosure of notes to the statements.


The fifth is the supplementary provisions, which standardize the accounting treatment and effective date of the new and old convergence when the agency first implements the provisions. Appendix 1 is the format of financial statements, including the form of balance sheet, income and expenditure statement, and notes sample table.Appendix 2 is an example of accounting treatment of major business and events.


Q: what is the relationship between the regulations and the social insurance fund accounting system, and what are the special considerations in terms of style and structure?

A: in terms of style and structure, the regulation is not an independent and complete system, but on the basis of the implementation of the "social insurance fund accounting system", it makes provisions for the special accounting treatment of occupational pension fund accounting.


It is mainly based on the following considerations:

First, considering the continuity of the accounting of occupational pension funds, since 2017, most agencies have conducted accounting for occupational pension funds with reference to the accounting system for social insurance funds. Only standardizing the special accounting treatment is conducive to the smooth transition between the old and the new in the regulations.


Second, considering that the basic endowment insurance and other social insurance and occupational annuity are handled by the human resources and social security departments at all levels, and the human resources and social security departments also undertake the work of accounting and final accounts compilation and reporting. Taking the accounting system of social insurance fund as the benchmark system is conducive to the effective implementation of the regulations.Third, taking into account the relevant feedback, agencies and other relevant parties all over the country have unanimously agreed on the practicability of the provisions under the current system.


In addition, the content of the current system is relatively concise, avoiding the simple repetition with the "social insurance fund accounting system".


Q: according to the regulations, what is the accounting scope of occupational pension fund?

A: the regulations require the central and provincial agencies to conduct the whole process accounting of occupational pension funds That is to say, the accounting scope covers the collection, collection, entrusted investment and treatment distribution of funds. Among them, the central and provincial agencies shall, according to the relevant information provided by the entrusted institutions, carry out accounting treatment on the investment income and benefits after the entrusted investment.


It is mainly based on the following considerations: first, the need for the central and provincial agencies to perform their management duties.The Interim Measures for the management of occupational pension fund points out that agents (central and provincial agencies) should supervise the management of occupational pension plans and establish a risk control mechanism.The whole process accounting can provide effective support for agents to perform their management duties.Second, the whole process accounting meets the relevant policy requirements of final accounts compilation and reporting. According to the relevant provisions of social security fund final accounts compilation and reporting, the central and provincial agencies are not allowed to disburse funds when entrusting investment.


Q: according to the regulations, how should the accounting treatment be carried out for those who adopt the accounting method to accumulate the unit's payment?

A: the regulations require agencies at all levels to confirm the occupational annuity payment income according to the cash basis, that is, if the payment is accumulated by accounting, the agency should not confirm the income and receivables before the funds are recorded, and confirm the occupational annuity payment income according to the amount actually received when the relevant funds are recorded.


In the process of soliciting opinions, most of the feedback approved the accounting treatment method of confirming the payment income according to the cash basis. At the same time, some of the feedback opinions believed that the agency should strengthen the management of the rights and interests of the unrecorded individual account.Therefore, the "Regulations" require agencies at all levels to register the principal and interest that have not been recorded and disclosed in the notes to the financial statements.


It is mainly based on the following considerations:

First, it is consistent with the accounting basis of the "social insurance fund accounting system". The general description of the system stipulates that "the accounting of social insurance fund generally adopts the cash basis". The "Regulations" takes the "social insurance fund accounting system" as the benchmark system, and should be consistent on the basis of income recognition.


The second is that the payment of the non recorded units does not meet the income recognition conditions.Under the mode of accounting, only when the insured objects meet the conditions of retirement, can the legal obligation of payment be generated.Therefore, the unit will not form the current obligation before the insured personnel meet the conditions of retirement and other conditions, and the corresponding agencies should not recognize the income and receivables.If the agency recognizes the income and receivables on a monthly basis in advance, it is bound to mislead the users of the statements, causing them to misunderstand that the insured units or the same level of finance should bear the same amount of debt, which will have unnecessary negative impact on the government debt management.


Q: are there any other important matters to be explained about the provisions?

A: the regulation consists of the main body and the appendix.


A: there are also the following aspects that need to be explained in the provisions:

One is about the accounting treatment of municipal and county-level agencies.According to the regulations, the municipal and county-level agencies shall confirm the payment from the superior level when collecting funds from the superior funds, and shall not carry out accounting treatment on the subsequent links such as the capital interest income, investment income or loss, treatment and expenditure that have been collected from the superior fund.Accordingly, the higher-level agency shall recognize the income of the subordinate superior when receiving the collected funds from the municipal and county-level agency.It is mainly based on the following considerations: according to the relevant provisions of the Interim Measures for the management of occupational pension funds, the municipal and county-level agencies only undertake the responsibility of collecting occupational pension funds and collecting funds from superior funds, and the follow-up entrusted investment and payment of benefits are completed by the central and provincial agencies.Therefore, the relevant fund collection business is directly recognized by the agencies at all levels, which is more in line with the policy arrangement and practical needs of fund management.


The second is about the accounting subject and related accounts of account transfer.According to the regulations, when the insured objects transfer out their accounts, the central and provincial agencies shall confirm the transfer expenditure;When the account is transferred in, the transfer income shall be recognized by the agencies at all levels responsible for the collection of funds.It is mainly based on the following considerations: Interim Measures for the management of occupational pension fund collection account and other systems regulate the account setting and account income and expenditure authority of the occupational pension fund. The fund transfer out of the account can only be transferred out by the central and provincial agencies, and can be transferred out by the entrusted account.Therefore, the accounting regulations of account transfer should be consistent with the relevant account management regulations.

 

Third, the accounting treatment of refund and expense recovery.The standard standardizes the accounting treatment of refund and recovery of expenditure under the circumstances of current year / cross year, original return / collected upward or transferred to the entrusted account.It is mainly based on the following considerations: due to the differences between the account management system of occupational pension fund and the basic endowment insurance fund, the accounting treatment of occupational pension fund in the case of fund return or annuity treatment recovery that has been collected upward or included in the investment and operation link can not be directly referred to the "social insurance fund accounting system", and needs to be further standardized.


Fourth, the accounting treatment of management fee.According to the code, the central and provincial agencies should recognize the investment income according to the net income after deducting the management fees and other expenses, and disclose the relevant information of the management fees in the notes according to the regulations, without the need to recognize the management expenses separately.It is mainly based on the following considerations: the investment income data provided by the entrusted institution to the central and provincial agencies is the net income after deducting the management fees and other expenses. It is easy to cause confusion in the recognition of management fees and investment income if special accounting is required for the management fees. Therefore, the expenses are no longer recognized separately.At the same time, considering that the management fee is an important expenditure of the fund, it should be disclosed in the notes.



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