Research On The Chinese Government Financial Report System

The Third Plenary Session of the Eighteenth Central Committee of China's Communist Party has put forward to perfect the modernization of state governance system and ability.Under the background of creating a transparent,performance and responsibility government,the exposure of government financial information is evidence of improving the government behavior,which reflects the implementation of the government responsibility.China doesn't have truly a government financial reporting system,and the traditional budget accounting system has great functional drawbacks in the measurement and reporting public funds in budget operation,and government performance area.The Fourth Session of the National People's Congress has passed the twelfth "five-year plan",clearly put forward to promote the reform of government accounting,and establish the government financial reporting system;and the Third Plenary Session of the Eighteenth Central Committee of China's Communist Party has also made a significant deployment of setting up a comprehensive accrual government financial reporting system.Therefore,it is very emergent to reform the present budget accounting system and establish the government financial reporting system which satisfy the market economy development of our country.The theoretical significance of this paper lies in three aspects: firstly,strengthen the foundation of the public finance system of the state governance,and improve the governance ability: secondly,introduce the accrual basis in the government financial management,and strengthen the public accountability;thirdly,realize the government performance evaluation by the design of the indicators.The practical significance of this paper also lies in three aspects: firstly,help the government grasp the basic situation of the public assets better so as to optimize the allocation of public assets more effectively and prevent the loss of state-owned assets;secondly,master the basic situation of the government debts timely and completely and help the government manage and guard against financial risks better;thirdly,improve the fiscal transparency,and promote the building of a democratic nation.The logical path of this study is “Theoretical Analysis—Empirical Analysis—Reform Design” and main methodologies include normative analysis,empirical research methods and comparative analysis.The study is aim to combines the theory of public accountability and public finance,public choice theory and new public management theory and deeply analyze the current situation and problems in the course of trying to compile the comprehensive financial reports with the idea of strengthening the government public fiduciary duty and improve the modern financial system.By learning the advanced experience of the government financial reporting system of typical countries,put forward to the specific suggestions and perfect our country government financial reporting system design.Chapter1 mainly introduces the research background,the significance,the thought and method,and the importance and difficulty and innovations.Chapter 2 mainly reviews related domestic and foreign literature,and based on the literature review finds that existing government financial report was not well and doesn't set up the lining between government financial report with government accounting and budget management.Comprehensive Chinese government,it is necessary to reform the system of financial reporting is given priority to with qualitative research,quantitative research is less three aspects,such as the shortage of the current government financial report in China are put forward.Through the fruitful research achievements of scholars at home and abroad,from the research scope expanding,with the system environment change and constantly optimized,to have a clear government financial report target,scientific and standardized system of government accounting is the premise,from five aspects,such as introducing the accrual basis is proposed to our country important reference of the reform of government accounting and financial reporting system.Chapter 3 has described the basic theory of establishing government financial reporting system,and proposed that it is inevitable to set up the government financial reporting system.It is an important tool of strengthening fiduciary duty,and establishing a modern financial system,and it is the material guarantee to strengthen financial supervision,and it is the objective need to satisfy the international standard,and then expounds the main components of the government financial report,further clear the relationship between the government accounting and the financial reporting system.Chapter 4 introduces the history of Chinese government financial reporting system,the presentation of Chinese government financial reporting,and points out that there are eight aspects of problems.They are:(1)accounting statistical differences between different report subjects increased the difficulty of the consolidated financial report;(2)the current system of government financial report relevant document of operability is not strong;(3)the assets assessment methods may not cause lose objectivity and authenticity of the financial report;(4)the government debt situation reflect inadequate;(5)the accumulated depreciation of fixed assets,amortization of intangible assets and other problems to be solved;(6)the accounting standards for financial reporting is not sound,the offset adjustment items in the report is difficult to reflect;(7)basic accounting lack of resources endowment;(8)report information utilization degree is not high.Chapter 5 mainly introduces,compares and draws lessons from the government financial reporting system of the typical countries such as America,Russia,Australia,and UK.It is clear that the financial reporting system is an important tool of governance and management,and different countries have different characteristics of the government financial reporting,which are influenced by history,politics,budget,government accounting,and other factors.Based on above,here points out four conclusions.They are:(1)based on different reporting entity,the government financial report mainly includes the central(federal)government consolidated financial report,the local government financial report and the department of financial report three parts;(2)due to the attention of citizens of the Chinese government budget is not high,the existing budget report,financial report many amateurs are difficult to read,readable,full of government financial reporting system of citizen guide information is vital for the future work;(3)the government financial reporting should reflect the whole picture of assets and liabilities;(4)the formulation of government financial report is one of the important reasons of strengthening fiduciary duty of the government,so the performance report,accountability should also be an important part of the government financial report.Chapter 6 builds up the main framework of the accrual government report and describe it form four aspects,which are the guiding ideology,basic principles,main goal and overall framework.Among them,want to insist on information disclosure and risk control,insist on the combination of micro management and macro analysis,based on national conditions and learn from experience,insist on the combination of in an orderly way combined with a gradual reform,basic,intermediate and advanced three levels of targets,from accounting system,the relationship between the checked,the financial reporting system and internal control system four aspects to build the overall framework of the Chinese government financial report system.Chapter 7 mainly proposes a sound system of China accrual government comprehensive financial report system.The detailed suggestions are constructed by four aspects,including government financial reporting entity,the government financial report preparation,government financial statement analysis,audit of the government financial report,and other relevant supporting system.Innovation points of this article are,firstly,study on different countries related regime,draw conclusion about existing problem of different providence,and design the top-level framework for the Chinese government financial reporting system.Secondly,by the as the research object,by domestic and foreign experiences as reference,to was implemented step by step is currently Shi Bian work present situation,problems,systematically,a targeted research,previous studies only focus on separate from the theoretical level of it,combining the reality of specific work less.Thirdly,systematically put forward China's accrual accounting system design of comprehensive financial reports,including from the guiding ideology,basic principles,main objectives and the overall framework proposed to build the accrual government comprehensive financial reports the overall train of thought,and from the government financial report subject scope,establishment,statement analysis,audit and supervision and other relevant supporting system operating methods and measures are put forward,and a certain targeted.Because there is no formal financial report system in China now,and financial reports in different government level are in trial stage,it is quite difficult to points out pertinent measures for all problems.Thus,this study is still in early stage,and could be extend as the trail of financial report moving forward.