Research On The Reform Of Accounting Accrual System In Scientific Institutions

For a longtime, in order to meet the governmental requirements on the management of accounting and budgeting, scientific institution has been using cash basis as the accounting recognition basis. However, with the deepening of reform on market economy system and public financial system, the function of government accounting gradually transiting to reflect the implementation of fiduciary duty and provide useful information for decision-making. Cash-basis accounting shows its limitation through the constant changing of accounting function in scientific institution. Since 1990s, many Countries led by UK, USA and New Zealand had conduct a reform in government accounting on accrual-basis. It has become an important mean to strengthen government’s public administration and improve financial transparency. Drawing on the experience of accounting reform in foreign government, we have made a series of accrual basis accounting research and reformation in public institutions in our country. To cope with the changing environment of accounting system reform in public institution, and to meet the need of management in scientific institution’s function reform, the introduction of accrual basis accounting is inevitable trend in scientific institutions. The newly issued "Scientific Institution Accounting System" in 2013 introduces the concept of accrual basis accounting, while the combination of accrual accounting and full cost accounting is still an important topic.This paper is based on the analysis of problems on current cash basis accounting in scientific institutions. Compare the characteristics, advantages and disadvantages of cash basis and accrual basis of accounting. Indicate that accrual basis accounting is inevitable under the reform of accounting in scientific institutions. Based on the nature and business characteristics of scientific institutions, author believes under current policy environment, we should combine cash basis accounting with accrual basis accounting. Drawing on the experiences of foreign countries and government institutions in our country, this paper tries to explore and construct a set of accounting system which is suitable for scientific research cost accounting and financial management accounting system in scientific institutions, laying foundation for performance evaluation of research work, truly reflecting financial statues of scientific institutions.