Accrual Accounting In The Financial Fund Management Application Analysis

Cash basis is the main accounting methodology conducted by governments over the world; however, disadvantages of cash basis have gradually sprouted with the development of socialist market economy and requirements of modern financial system. Governments and citizens put forwards to higher requirements of efficiency of use of financial funds. The fact that finance information related to cash basis is not comprehensive leads to the difficulty of complete realization of government finances. Weaknesses of cash basis include non-profits, ignoring costs, huge cost of use of funds, low efficiency and lack of cash control. Government is supposed to emphasize costs and calculate utilization of benefit and efficiency of funds. Now, China is faced with important phase of economic development; only by reforming financial management, enhancing the level of government inspection of finance, can the government have scientific materials to apply macroeconomic policy. Under implementation of cash basis the government could facilitate the reform of accounting system, complete financial information and construct modern financial system, which is necessary means of realization of modernization of national governance..Based on case studies of the impletation of actrual basis of L prefeture and that of D bureau, this paper mainly focuses on the conception, contents and features of accrual basis theory; contrasts between acctural basis and cash basis; puts forwards to the necessity and feasibility of acctural basis; analyszes the current state of fiannacial funds management and application of actrual basis. The paper also makes some comments and sugggetions including congnition guarantee,team guarantee,institution guarrante, technology guarantee,performance and assessment guarantee.