A Study On Accounting Of Public Institutions Under The New Accounting System Of Public Institutions

As the part of the economic society,public institutions’ business activities’ reflectand inspection are inseparable from financial accounting rules and regulations. On thedate of January1,1998, the Ministry of Finance People’s Republic of China enactedthe Public Institution Accounting System.Although on the basis of this system,thework of our public institutions of accounting carried out more smoothly.BecauseChina’s economy developed rapidly, and career scope of business activities in publicinstitutions also continued to expand.During this period, with the reforms of treasuryconcentrated payment,the classification of government revenue and expenditure,department budget and state owned asset management step by step,the publicinstitutions accounting system began to appear some drawbacks and limitations. Thesystem obviously could not keep pace with the times change. In order to adapt to thesocial reform and development,the Ministry of Finance issued a revised PublicInstitution Accounting System on December19,2012and provided fullimplementation of the new system on1January2013.The new system has asignificant impact to the accounting work of public institutions. How to do accountingwork and adapt to the new system becomes a new problem to public institutionswhich should be further discussed.The thesis uses the method like this: combination of normative analysis andliterature studies, and combination of theoretical research and case study.The mainwork is through a thorough analysis of the old and new systems, making it clearly thatthe impact of the new system on public institutions and how to carry out the newsystem much better. The paper’s details are as follows:First and for most, the thesis brief reviewes the relevant literature abroad of theaccounting system.At the same time the thesis presents the main achievement of ourcountry’s research on the new system.On the basis above, the thesis expounds theshortage and blank fields at home and abroad which has not been researchedclearly.Second,this thesis explains the differences and advantages of the newsystem.Third, this thesis analyses the impact of the new system on public institution,including the impact on assets,net assets and financial statements.And the thesispresents some suggestions to public institutions about how to carry out the newsystem much better.The suggestions include that strengthen assets and net assetaccounting management,improve financial statements accounting,establish a complete set of accounting rules,strengthen the accounting teams’ building and optimizie publicinstitutions’accounting management system.Last but not least, the thesis takes ANavigational Authority for the example,expounding the current status of itsaccounting and the difficulties the institution faces under the new system.Towards thecurrent status and difficulties,the thesis provides some suggestions.In aword,suggestions the thesis proposes are good for public institutions to establishapplicable systems.