China's current government accounting for the Analysis of Problems

Abstract: The Chinese government sector is currently implementing a budget accounting system in 1998, after nearly 15 years of development, China's market economy has developed tremendous change, economic development, the transformation of government functions, etc. so that our country can no longer current government accounting to meet the development needs of our country, the outbreak of a series of drawbacks. article on China's current accounting problems were analyzed.

Keywords: government accounting, accounting reform, accounting issues

First, the problem raised

Government refers to government accounting accounting body, the government's assets, liabilities and income and expenditure registration, recording and reporting of financial activities of the government response to use, and to provide government-run macroeconomic information and fulfillment of the government's economic responsibility accounting system.

And Government Accounting is another concept related to budget accounting, budget accounting mainly refers to China's current budget accounting system, including general budget accounting, accounting and public institutions, accounting and other administrative units of the relevant departments of accounting, so that government accounting is part of the budget accounting.

China has been using the 1998 reform of the managed budget accounting system, as China's economic development, China's budget accounting is constantly reform, for example, in 2004 the Ministry of Finance has issued a non-profit organization accounting system <<> >, and actively explore the construction of non-profit organizations accounting standards, in 2010 conducted a hospital, primary health care institutions accounting system reform, promulgated the << >> and << hospital accounting system for primary health care institutions accounting system >>, an increase of fixed depreciation of assets, improve cost collection and improve the financial reporting system and other content, this series of more comprehensive reform of China's budget accounting system so that the budget accounting system can better reflect the activities of public institutions and the income and expenditure of funds.

However, these reforms did not make our country to establish strict sense of government accounting system, there is no complete conceptual framework and the government of the Governmental Accounting Standards in writing, and can not meet the public demand for information on government financial With the continuous progress of administrative philosophy, public improvement of living standards and the concern of the government fiscal activities, government accounting reform is the imperative, but our government accounting reform involves a wide range, causing big changes and many stakeholders involved, so they requested that government accounting reform should steps are prepared for, it may take a very long period of time, effort, this article on government accounting reform talk about their own point of view.

Second, China's current government accounting problems

1998 reform of government accounting practice to the present, has slowly highlighted its limitations, mainly in what areas:

(A lack of uniform accounting standards and accounting system architecture

Throughout the Western developed market economy countries, the public finance system, there will be government accounting standards and financial reporting system and other supporting government regulations, to ensure that government can fully reflect the financial activities of the government's financial position, cash flows and operating conditions, such as U.S. federal government accounting and accounting into state and local government accounting in two parts, the federal government accounting and financial reporting standards by the Federal Accounting Standards Board
Committee established by state and local governmental accounting and financial reporting standards by the U.S. Government Accounting Standards Board to develop, so determined to have a unified system of accounting standards and accounting systems.

(Two accounting reports are incomplete, not fully reflect the government's campaign funds

Our core mission budget accounting system is the allocation of budget funds, while our government accounting information mainly through the beginning of the end of the government budget and final accounts available to the public the government and some of the legislature, China's government budget accounting accounts content is mainly revenue and expenditure activity, did not reflect all of the accounting elements, and therefore can not fully reflect the government's assets, liabilities, net assets, income and other financial position and cash flows, not the government entrusted with the management of resources, social security funds operation and other information. Accordingly, our government accounting method does not fully reflect the movement of government funds and results. And because the lack of information reported, the government's lack of internal management of government assets and liabilities complete accounting information, the government can not conduct a comprehensive analysis of the financial position, so that next year's government budget lacks sufficient basis, and because the information is too simple accounts, financial situation caused by lack of transparency so that the public can not be outside of the financial activities of the government to effectively supervise.

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(three cash basis of accounting-based limitations

Budget Accounting cash basis of accounting basis, so that our government can only account for a current balance of payments accounting of funds activities, does not reflect the current has already occurred but have not yet paid or received funding activities.

Cash basis of accounting-based limitations in the following three aspects:

On the one hand is not fully reflected in government accounts and assets, China's government accounting did not reflect the fixed assets accounting and for the purchase of fixed assets expenditure occurred, after no fixed assets accounted for subsequent accounting period of the accounts fixed asset information is only as supplemental information to reflect this, and therefore out of the supervision of the fixed assets, and because the present form of government investment diversification, the government invested more and more, the formation of state-owned equity shares is the government's financial assets, And as treasury fund capital operation and securities trading behavior occurs, the Government's financial assets have become a creditor, which the government claims are financial assets and existing government accounting system did not reflect,
On the other hand does not accurately reflect the activities of government debt, is not conducive to government fiscal risks. As mentioned earlier, only cash basis accounting expenses actually received or income and expenses, for already occurred but have not yet Paid part is not reflected, but this part may be just right reflects the Government's future financial risks.

(Four system specification models lack of flexibility and adaptability

Internationally harmonized used the "standards governing" mode, so-called "normative standards" mode refers to the state government to develop accounting standards have specialized departments or agencies, through the development of guidelines to constrain the behavior of government accounting in the country's development environment changes cause

Standards require that certain matters are not available, you can always publish specific matters separate accounting standards, which is adjusted locally without all the criteria will be overturned, so this model has high flexibility. Instead, China has been used the "rules and norms" and the country does not exist in the form of published accounting standards bodies. "institutional norms" There is an obvious drawback is that all accounting transactions are required under current accounting system requirements, if changes in the environment cause the provisions of the matter is no longer appropriate for specific environments, we need to re-develop the system, so "rules and norms" mode is the lack of flexibility, very suited to China's rapid development and changing environment. (Author: Northwest University for Nationalities

References:

[1] Liu Bingjiang about the reform of government accounting accrual Some Thoughts [J]. Accounting Monthly, 2009
[2] Left Ganoderma based on accrual accounting reform government research [D]. Jilin University
[3] Shi Yinghua Our government accounting reform oriented research - Comparative Analysis [J]. Central University of Finance, 2007
[4] audit of the research institutes. On the National Audit promote reform of government accounting - Institutional Change Theory Perspective [R]. Audit Reports .2011

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