The Research On Government Financial Reporting System In China's Public Finance

With China's public finance system established, government financial function gradually turned to remedy the market failure and the community to provide public products and services, between the government and the public the principal-agent relationship is more and more obvious. It is a new requirement of the public finance system how the government to fulfill its public accountability to the public, to explain the resources it controlled, payments and cash flow condition, to explain the economic stock and flow, to reflect its ability about offering public products. Government financial reporting, as an effective government financial information carrier, for disclosure of government financial conditions and operating performance, to reflect the government accountability, plays an extremely important role. At present our accounting report is budget accounting report which is suitable for the current budget accounting system. It mainly reflects the government's budgetary implementation, and can not fully reflect the government's financial condition, and lacks the information that can help the public objectively evaluate government public accountability. So the current budget accounting report can not meet the development of public finance. It has become an important issue of government accounting reform to construct government financial reporting system that is suitable for China's public finance management needs.This paper expounds the theory about public finance, accountability, financial reports and reviews the evolution of China budget accounting reporting system. Although the current budget reporting system have plays a positive role, it also exists some problems, such as the limitations of report targets and the information users, the selection of accounting foundation, the imperfection of budget report system itself, etc. Based on the perspective of public finance, it is inevitable trend that government accounting replaces budget accounting and it is also imperative to build government financial reporting system which can provide government performance and accountability of performance better to the social public. Therefore, using foreign successful experience, considering the actual situation in our country, based on the government accounting pattern, this paper suggests some basic ways to how to found government financial reporting system. These ways includes defining government financial reporting objective, selecting suitable accounting foundation, reconstructing government financial reporting entity and system, perfecting the relevant supporting measures.