diff --git a/erpnext/accounts/report/financial_statements.py b/erpnext/accounts/report/financial_statements.py
index 557f5b3a58..d030f5f706 100644
--- a/erpnext/accounts/report/financial_statements.py
+++ b/erpnext/accounts/report/financial_statements.py
@@ -379,8 +379,8 @@ def get_additional_conditions(from_date, ignore_closing_entries, filters):
 	if filters:
 		if filters.get("project"):
 			if not isinstance(filters.get("project"), list):
-				projects = str(filters.get("project")).strip()
-				filters.project = [d.strip() for d in projects.split(',') if d]
+				projects = frappe.safe_encode(filters.get("project"))
+				filters.project = [d.strip() for d in projects.strip().split(',') if d]
 			additional_conditions.append("project in %(project)s")
 
 		if filters.get("cost_center"):
@@ -400,7 +400,8 @@ def get_additional_conditions(from_date, ignore_closing_entries, filters):
 
 def get_cost_centers_with_children(cost_centers):
 	if not isinstance(cost_centers, list):
-		cost_centers = [d.strip() for d in str(cost_centers).strip().split(',') if d]
+		cost_centers = frappe.safe_encode(cost_centers)
+		cost_centers = [d.strip() for d in cost_centers.strip().split(',') if d]
 
 	all_cost_centers = []
 	for d in cost_centers: