Report Overview - The Ministry of Finance recently issued the "Interim Provisions on the Accounting Treatment of Local Government Special Bond - Related Business" (Caikuai [2025] No. 17), aiming to improve the accounting treatment of special bond - related business, optimize the management mechanism, and strengthen the full - process management of special bonds [4]. Core Viewpoints - The pre - setting of the process for confirming the main body of special bond repayment obligations helps enterprises be more cautious when applying for special bond projects [8]. - After the implementation of the "Provisions", if the conditions for "project units not bearing the repayment obligations of special bonds" are not met, it may be unsustainable to include existing special bonds in capital reserves and recognize subsidies, and the debt - servicing pressure of such enterprises may increase to varying degrees [9]. - The "Special Bond Project Investment Table" helps strengthen the management of special bond funds, and the "Special Bond Fund Repayment Situation Table" helps monitor the principal and interest repayment of special bonds in real - time and prevent local government debt risks [15]. Specific Requirements of the "Provisions" Accounting Treatment of Special Bond Funds for Enterprise - Type Project Units - If an enterprise - type project unit is required to bear the principal and interest repayment obligations of special bond funds according to the project implementation plan or financing balance plan, it should recognize them as liabilities and conduct subsequent accounting treatment in accordance with relevant regulations; if not, it should conduct accounting treatment in accordance with relevant enterprise accounting standards [5]. - Starting from January 1, 2026, enterprises should compile the "Special Bond Project Investment Table" and the "Special Bond Fund Repayment Situation Table", collecting and organizing various information such as the amount of special bond funds received, repaid, and spent, and the situation of asset formation [6][7]. Accounting Treatment Details - **Accounting for obtaining special bond funds with repayment obligations**: When receiving funds, debit "Bank Deposit" and credit "Long - term Payable - Special Bonds (Principal)"; when accruing interest, debit relevant cost accounts and credit "Long - term Payable - Special Bonds (Interest)"; when repaying principal and interest, debit "Long - term Payable - Special Bonds (Principal, Interest)" and credit "Bank Deposit" [6]. - **Accounting for constructing assets related to special bond projects**: Use special bond funds for project construction and form relevant assets according to enterprise accounting standards, and conduct auxiliary accounting according to the source of project funds [6]. - **Accounting for obtaining special bond project income**: Account for income in accordance with relevant regulations. If project income is used to repay special bond principal and interest, set up a secondary detailed account or use auxiliary accounting to mark the source of debt - servicing funds [6]. Impact on Enterprises Project Application - The pre - setting of the confirmation process for special bond repayment obligation subjects makes enterprises more cautious when applying for special bond projects, as they need to carefully calculate project investment, income, and their own funds [8]. Financial Statements and Debt - Servicing Ability - **Impact on liability - related indicators**: If special bonds transferred to capital reserves need to be borne by the enterprise, the asset - liability ratio of sample enterprises will increase by 0.55 - 3.59 percentage points, and the debt burden will rise [11]. - **Impact on corporate profitability**: If special bond subsidies in other income no longer meet the requirements for being included in profit and loss accounts, it may have a significant impact on corporate profits. For example, a certain urban investment enterprise would have suffered losses without government subsidies related to special bonds in 2024 [14]. - **Impact on debt - servicing pressure**: If the income of special bond investment projects fails to meet expectations, the debt - servicing pressure of project units will increase to varying degrees according to the scale of existing special bonds [14].