Reformation Of Chinese Government’s Financial Report

The western developed countries has the most complete government financial reporting system, while we have a later study on the financial report problems of Chinese government.Until now, the accounting basis of Chinese government is the budget accounting system, which cannot reflect the related financial information about the government resources, present obligations and business activities. With the development of the socialist market economy system, especially in the transformation of Chinese government functions and deepening of the financial system reform, the perfection of the public financial system, and the increasing public participating consciousness, the government financial report shall meet the demand coming from different levels. In that way, Chinese government should set up a comprehensive, real, complete and reliable financial reporting system in order to help the government managers to make scientific decisions, complete a series of deep target on entrusted with the responsibility.This paper takes the educational department of Hunan province as an example to study the reform ideas and practical way on financial report of Chinese government. First, we analyze the present situation of government financial report, finding that it has some problems on the financial rport target, accounting basis and the contents of the report. Then, we introduce the financial report model of American local federal government to have a comparative analysis with the educational department of Hunan province. We come to the conclusions of reform ideas, including:full attention to other users’needs of the government financial information, gradually introducing the accrual basis, perfecting the fund report subject, increase preparing consolidated financial statements, and providing accounting information on the analysis of financial performance and cost. Finally, based on the actual conditions of the educational department of Hunan province, we proposed the realistic approaches on the improvement of financial reports, including:clearly defining government’s financial report goals, gradually changing the accounting basis of government financial report, reasonable introducing the "double subject" mode, expanding the content of government financial report, at last, setting up a complete set of government financial reporting system.