Reform And Perfection Of Financial Report In Universities In China

Universities in our country have been classified as administrative institutions since the founding of new China. The fund for higher education mainly comes from government budget. University financial report mainly reflects the balance of payments of budget, aiming to report to the supervising department of education and serving the government budget management. With further reform of higher education system, more funds are needed for expanding universities'scale. Multi-way investment in education has emerged, including government's fiscal allocation, students'tuition fee, bank loan, social donation, and etc. In such new situation, more and more benefit-related parties, such as government, the supervising department, students and their parents, banks and creditors, donators and investors, need to know about universities'financial report. However, the current university financial report actually refers only to the balance of payment of budget, which can never meet the demand of so many users. Thus, university financial reform is urgently needed.So far, a lot of research has been done for enterprises'financial report, but the research for university financial report has just begun. Many scholars at home and abroad have come up with many precious suggestions on the reform and perfection of university financial report as shown in this article. However, domestic research is in its early stage and comparatively scattered without independent financial report frame system, and great efforts need to be made to prefect it. So the author chose the topic"the Reform and Perfection of Financial Report in Universities in China"for research.I. Main contents of the paperBeginning with the evolution of university financial report, this paper analyses the influence on university financial report by universities'external and internal environment, indicating the necessity of university financial report reform. Further, from the angle of financial report frame system, the author deeply analyses our country's university financial report and raises the issues about the 6 Ws– reporting objective (whom), reporting body (who), reporting foundation (how), reporting content (what), reporting disclosure (where), and reporting time (when). To solve these problems, reform has been proposed for reporting objective, reporting body, reporting foundation and reporting disclosure. Finally, from the practical point of view, concrete measures have been proposed to establish report frame, enrich report content and perfect side-reform to realize the goal of the reform from the balance of payment budget to comprehensive financial report, which is based on information disclosure and achievement-oriented. This article consists of 5 parts as follows:Chapter 1 IntroductionIt briefly described the purpose and significance of this paper, the research and application of university financial report at home and abroad, the way of research, content of this paper and the research frame.Chapter 2 Background of university financial reportFirst the evolution of university financial report has been introduced. Since the founding of new China, our country's university financial report has undergone 3 reforms, showing the close relationship between financial report and accounting environment. Then the influence on university financial report by university's external and internal environment is analyzed, elaborating the necessity of university financial report. The existing university financial report can not be adjusted to the external and internal changing economic environment, so reform must be implemented to meet the requirement of new users under the changing environment.Chapter 3 The problems in university financial reportFrom the angle of financial report frame system, 6 Ws have been analyzed in depth for our country's university financial report. (1) Whom: The report's target is not clear, which can not provide much information. (2) Who: The report's main body is separated, which can not directly and effectively reflect the accounting information as a whole. (3) How—The report's base is fragile and limited in payment, which makes the information lose its truth. (4) What: The report's content is simple, which ignores the invisible capital and make information lost. (5) Where: The report's channel is not standard, which makes the way of disclosure too limited. (6) When: The report's time is prompt, which can not predict the future situation.Chapter 4 The idea of reform in university financial reportIn order to solve problems in university financial report, the author, from the angle of the objective, deeply analyzes users'information need, properly defines the report body, discuss the report affirmation foundation, and standardize the disclosure principles. The thought is elaborated from report objective, report body, report foundation to report disclosure. Accordingly a new theory frame of university financial report has been basically set up, which can meet users'information request, set the whole university as the report body, comprehensively reflect university's overall economic resources, and disclose information publicly, immediately and effectively on the accrual basis of accounting.Chapter 5 The specific measures of perfecting university financial reportFrom the angle of practical use, specific measures have been proposed to set up report frame, enrich the report content and perfect the side-reform. University financial reform consists of the analysis in administration, financial report form and information complementation, of which the financial report form is the core, including accounting primary form and outer-form information. The financial report content can be enriched by adding administration analysis, improving the accounting primary form– simplifying the balance of payments form and adding cash measure form and capital debt form, and perfecting outer-form information disclosure. According to these measures, we can truly reflect the schooling income, cost, debt and credit, increase the invisible capital and donation information, and get a better understanding of fees and audit. Meanwhile we emphasize university's sponsoring plan and complement of the human resource information. As a result, we can reflect the university's financial condition and achievement comprehensively and the ability for further development and overall competition. To perfect side-reform can realize the goal of the reform– to establish an information disclosure and achievement-oriented financial report system, from budget balance of payments to comprehensive financial report in terms of theory research, system improvement, technology innovation and employees'training.II. The contributions and shortcomingsContributions: From the angle of financial report frame system, a deep analysis has been made for the university financial report. And the following conclusions have been reached to push forward the reform of our country's university financial report significantly and practically.1. By analyzing, in every aspect, the problems in the university financial report, problems have been found related to 6 Ws– reporting objective (whom), reporting body (who), reporting foundation (how), reporting content (what), reporting disclosure (where), and reporting time (when). The current researches in our country are very scattered, not systematic and detailed.2. The theoretical frame of university financial report has been basically established. Beginning with the university financial report's objective, the author carefully analyzes the users'information need, properly define the report body, discusses the report affirmation foundation, and standardizes report disclosure. The thought of reform has been carefully elaborated on the basis of the analysis of report objective, report body, report foundation and report disclosure. Finally, a theoretical frame of university financial report has essentially been established. It is hard to find such information in domestic researches at present.3. A comparatively perfect and independent university financial report system has been set up. From the angle of practical use, the author proposes to set up report frame, enriches the report content and perfects side-reform measures. And we have established a comparatively perfect financial report frame and analyzed examples of institution report. Moreover, we have made use of theoretical frame to set up perfect university financial report system. At present, it is also hard to find such report in domestic researches.The shortcomings: Due to lack of knowledge, time and energy, there are many shortcomings in this paper. Great efforts are still needed to unveil the university financial report's deep connotation, the establishment of the report achievement assessment system, the technology of report net disclosure, and the deepening of the reform of the report measures. There is much room left for me to improve, and I hope that more and more researchers will work on this topic.