Study On Centralized Accounting System Construction Of The Sinopec

Currently conglomeration of business entities has become a trend of economic development. China Petrochemical Group(Sinopec Group or the Group) is a super-large international business entity ranked the 4th in Fortune Global 500 in 2012. In the new voyage of building a world-leading energy and chemical company, a centralized financial and accounting management system is of critical importance. Implementing the centralized accounting system in one of the measures taken to strengthen the Group’s financial management capacity and intensify the centralization of financial management.The Article illustrates the centralized accounting system(the System) as an advanced accounting model suitable for Sinopec Group in the modern information age based on the background of the development of such system and the present financial management mechanism in the Group. The Article introduces the concept of the centralized accounting system and major models of such system. The Article proves the necessity of the System by comparing the major aspects of financial and accounting management in the Group with the previous practices. The Article summarizes targeted goals, application, principles, contents,framework, integration, and safety planning of the System. In the last Chapter, the Article characterized the System as “one standard, two platforms, connectivity, and automated integrity”. The Article further concludes that the System is essential for building the leading centralized accounting management system and moving the financial management from ex post facto responses to ex ante practices. It is believed that the System will enhance the overall financial management and control capacity of the Group, accelerate the generation of financial statements, provide more accurate and timely information disclosure, improve the quality of financial information acquisition and analysis, contribute to the formation of the modern financial management mechanism, and greatly boost the financial management competence in the entire Group. The System includes two core parts: operational component and technical component.