Study Of Waste Disposal Enterprises Bot Projects Accounting Issues

Infrastructure construction should go ahead of economic development.The rapid development of national economy has begun since the reform and opening up, however , the lagging behind of the infrastructure construction is the bottleneck of Chinese economy development. Similar to most developing countries, Chinese treasury faces the difficulties in sponsoring long-term development of infrastructure construction. BOT(build-operate-transfer)method, as the new project financing method, is significant to infrastructure building and operating, favored by many countries, especially developing countries. since the successful introduction of BOT model in "ShajiaoB power plant" in Shenzhen in 1985, BOT model becomes one of the most important method for using private capital and foreign capital.As the financial deficit of the government, the contradictions between increasing rubbish and straggling capacity of waste disposal exist and can't be solved in the short time . nowadays, many local governments carry out waste disposal project by using BOT model, which franchises the legal representative by inviting bid. So, recently, waste disposal companies actively explore the market and invest in the BOT project. the accounting treatment of franchising service hasn't been standardized for a long time, though ministry of finance listed the requirements in the 5^th term of accounting Standards interpretation No. 2 which is too abstract to practice which influences the quality of accounting information.Owing to the above factors, the paper gives an insight into the theory of accounting treatment of the BOT project in the sector of China waste disposal by utilizing western countries accounting theory of franchising and Chinese accounting standard , furthermore it highlights the difficulties and main problems concerning the accounting treatment about the BOT projects as well as detailed solution in waste disposal corporate by providing typical case study of Shanghai jiangqiao living garbage burning plant ,which can improve the quality of accounting information in waste disposal companies.In summation, the standard about the accounting theory and method of accounting treatment should be formulated to improve the quality of accounting information, for the BOT model has been adopted for a short time.