Study On Reform Of Government Accounting In China

The current government budget accounting system is different from the government accounting system, strictly speaking,we have not yet established the government accounting system in China that can fully reflect the government's economic resources, obligations and operational activities. In recent years, as China's socialist market economic structure has been established, the public finance system has made a gradual improvement, as well as the transformation of government functions, government actively promote the department budget , income and expenditure , government procurement,treasury centralized payment in financial management drawing on international experience, and it has achieved significant results, this series of reform makes the flow of financial resources have changed. Funds from the decentralized management model transformed into a centralized management model. Budget allocated to suppliers of goods or services not to the unit, the financial resources for the payment of wages is no longer transferred by the finance department in charge of money, but transferred directly to accounts of wages for workers. Therefore, budget units and the financial sector is no longer have the direct relationship between the funds allocated. The existing budget units accounting procedures are no longer consistent with the path of the financial resources, the budget accounting methods need to be adjusted. In the circumstances, with the help of the international practice, promoting China's government accounting reform and researching the establishment and running of government budget accounting's separation from financial accounting system have become an important component to strengthen the public administration and to improve government performance.It has reached a consensus for the government's finance separation from the financial in the theory and practice. In early 2003, the state-owned assets management system has undergone major reforms, the State Council set up a State-owned Assets Supervision and Administration Commission, from the broad framework on public finance and state financial separation. With the discrete of the national financial and fiscal system, China is ongoing the reform of the national budget system, the separation of the budgetary funds and the financial budget has become a necessity. It has become a reality need to account the budgetary funds and the financial capital of the country. In September 2007 the State Council promulgated the"State Council on a trial basis the views of state-owned capital operating budget," and right from the beginning of the year, some enterprises directly under central government should divide to the country. In 2007 operating budget for state-owned capital has been piloted, the state-owned enterprises'capital gains should divide to the country. Central level of state-owned capital operating budget started in 2008, and the state-owned enterprises'capital gains should hand to the government. This shows that the profits of state-owned enterprises have reached the end of the era of exclusion, indicating that the state management of state-owned capital business has entered a substantive stage.This article is a study in the above context, through the analysis of the current status of our budget accounting system and problems, drawing on the successful experience of Western countries and combining with China's specific national conditions we advocate to establish the Government Financial accounting system separated the budget accounting. Then we research the accounting objectives,accounting content,accounts and financial report of the government's financial accounting. This article is divided into seven parts:Chapter 1: an introduction. It primarily introduced research background and significance of China's reform of government accounting - the establishment of government financial accounting that separated budget accounting. And then it introduced the study of the status quo for domestic and foreign government accounting reform, and conducted Commentary; Finally, this paper describes the research methods and technical line, as well as the innovations of this article and follow-up research questions.Chapter 2: theoretical basis of separation for the government's financial accounting and budget accounting. It discussed the necessity to establish the government financial accounting system that separated from the budget accounting, taking the public finance theory,principal-agent theory,theory of entrepreneurial government and financial theory of the state as the theoretical basis.Chapter 3: the status of China's government accounting research. At present, China's government accounting mainly refers to the budget accounting, and therefore the status quo for government accounting study is the status of budget accounting. This section describes the status quo of our current government accounting (that is, budget accounting) and analyzes the problems existed in budget accounting, then it proposed to establish the government financial accounting separated from budget accounting.Chapter 4: the foreign government accounting reform and enlightenment. This section reviews the background and process of the reform in New Zealand, the United States, Canada, then analyzed their successful experiences and lessons, combined with China's national conditions we discussed the enlightenment to China's accounting reform that brought by western countries .Chapter 5: our government should adhere to the principles of accounting reform. This section presents our government accounting reform should adhere to the following principles: coordination with the public finance reform,adaptation to accounting environment , consistent with the reform of government and can meet the government performance evaluation.Chapter 6: a few ideas in the government accounting reform. This section provides a few ideas for the government accounting reform in China ,separately from the main body of the re-definition of accounting,the accounting objective of the re-positioning, the improvements of the basis of accounting, the expansion of the content of accounting , the selection of accounting measurement mode and accounting laws and regulations related to construction.Chapter 7: the construction for the government's financial accounting system. This part provides a few suggestions for the government's building in the financial accounting system. It discussed from the definition of financial accounting, related accounts'setting up and preparation of financial reports.