The Study On Debt Information Disclosure Of China’s Local Government

From the national audit office audited the local government debt in 2010, to the central economic work conference stressed that all caliber management of local government debt by the end of 2015, the nation has focused on the local government debt problem consistently. The nation is committed to ascertain the local government debt scale, implementing quota management, to resolve the debt risk of local government. Government debt information disclosure is an effective way of strengthening the debt management and is the basis of the financial risk assessment and control. At present, the ministry of finance has issued "the government accounting standards- basic principles", and is also promoting the government accounting reformation. However, there is still no relevant standards or files about how to disclose local government debt in order to remove the local government of entrusted economic responsibility. It is against this background, this dissertation has carried on the research of local government debt information disclosure, hoping to provide feasible policy suggestions to perfect our country local government debt information disclosure.The research object is local government debt information disclosure. This dissertation does the related research of local government debt information disclosure problems and its countermeasures through theoretical analysis, statistical analysis, comparative analysis and other methods. The full text is divided into six chapters: the first chapter is the introduction of research background, significance, domestic and foreign literature review, research ideas and methods, the dissertation introduce our innovations and inadequate; The second chapter makes the definition summary of local government debt and debt information disclosure, introduces the theoretical basis of debt information disclosure : public fiduciary duty theory and asymmetric information theory, and analyses the necessity of debt information disclosure. The third chapter expounds the present situation and problems of local government debt information disclosure, and analyzes the cause of problem. At present, China’s local government debt information mainly through debt audit announcements and budget report disclosed under the budget accounting, the national development and reform commission and budget division also have carried on the statistics to local government debt but the result was not made public. The way of debt information disclosure is not standard, debt content is not comprehensive, and debt information is lack of effective supervision. The existence of these problems can be attributed to the current budget based on the cash basis of accounting system and the imbalance between local government powers and intellectual property rights. The fourth chapter introduces the successful experience of New Zealand and the United States, the two countries using the accrual basis accounting system of local government debt situation of disclosure in the financial report, four inspirations can be drawn from. The fifth chapter puts forward the policy suggestions to perfect the information disclosure of local government debt, including to improve the information disclosure system, to do debt information disclosure work step-by-step, to set up reasonable government debt accounting subjects, the choice of appropriate measurement attributes, to promote the balance between local government powers and intellectual property rights, the implementation of the audit work. This part also covers the author’s thoughts of the way to disclose local government debt information under accrual accounting, I recommend disclosing local government debt information in financial statements, notes to financial statements and debt analysis, hoping to have a certain reference function.The innovation of this dissertation is three aspects: one is the dissertation sums up at present the results of the debt information disclosure inconsistency is because different information disclosure way has different debt statistics caliber; The second is the dissertation puts forward some measures, including to improve the information disclosure system, to set up reasonable debt subjects, choice of appropriate measurement attribute, to promote the balance between local government powers and intellectual property rights, to form a complete set of audit based on the current situation of local government debt in China. The third is on the base of lessons from international experience, this dissertation tries to give advice on the contents and methods of local government debt, suggesting in the balance sheet, notes to the financial statements, and debt analysis parts, respectively, to disclose debt information. Debt analysis makes evaluation on the scale, structure and risk of the debt. But with my academic skills, and the limit of the data collection and analysis ability and the lack of practical experience, analysis of the problems existing in the local government debt information disclosure is not enough in-depth, suggestions are not enough comprehensive and in-depth. Hope I can constantly strengthen the analysis and study of local government debt issues in the later study and work.