Research On Problems Of China Government Debt Accounting

The scales of government debt are growing huger, contents are growing greater, extents are wider along with the accelerated reformation of economic systems, especially, the polices of central government issuing bonds for local governments in 2009.Besides,public expenditures and expenditures of unexpected circumstances are always growing larger. Now, Government debt accounting system can not satisfy user's needs, can't precisely reflect debt expenses of our government, and can't compare with International Governmental Accounting. Particularly, financial risk matrix was introduced into China proposed by the senior consultant of World Bank, Hana Polackova Brixi, in 1998.The concepts of contingent debt and hidden debts appeared to everybody's views, and some scholars began to study Chinese government debt. Especially, Greece's debt crisis of sovereignty broken out in 2009, is a wake-up call for China. Although our country's financial condition overall is well, the will give potential crisis to government, because of a lot of government's contingent debt and hidden debt in China.This article is based on the problem that information provided by Chinese government debt accounting cannot satisfy user's needs, consisting of five parts. The first part mainly introduces the background and significance of the government debt accounting's research, relative research at home and abroad, research techniques and main innovation. The second part analyses characteristics of current government debt and problems of government debt accounting, puts forward the necessity of the government debt accounting's reform. The third part introduces reform's experience of America, New Zealand and the British government debt accounting at present, and several enlightenments for Chinese reform. The fourth and fifth part is the key of this article. The fourth chapter puts forwards accounting treatment under the mode of both cash basis and the accrual basis in government debt accounting. Because the government expenditures of business take greater proportion, the model gives priority to cash basis and the accrual as a supplement. Directly explicit debts continue using cash basis, contingent debts and hidden debts apply accrual basis for double entry to realize cohesion of two different accounting bases. The fifth part mainly introduces reforms of debt accounting information disclosure under the new mode, adds contingent debts and hidden debts accounts based on the former balance sheet, increases detailed statement to offer more detailed debt information in order to meet the reader's needs, and finally improves debt accounting information disclosure from auditing.