Improvement of enterprise pension accounting information disclosure system proposed

[Abstract] improve pension accounting Information disclosure system is not only to achieve effective regulation to protect the interests of pension beneficiaries, but also society as a whole to maintain financial market stability and harmony of necessity. In China, the disclosure of accounting Information on the pension study has just started, theoretical and practical applications there are still many problems. Therefore, the Information disclosure of pension accounting has a very important practical significance. In this paper, the disclosure of corporate pension accounting Information system to improve some suggestions for your reference.

[Keywords:] annuity; accounting Information; disclosure system; recommendations

The past two years, the enterprise annuity system in the rapid development of China, expanding pension, annuity how to strengthen supervision to ensure the safety of annuities is particularly important. Because there are a lot of enterprise annuity system, agency relationship, and the existence of corporate pension accounting greater uncertainty, leading annuity strong between the various stakeholders of information asymmetry, information superiority is likely to take advantage of this party to maximize their own interests at the expense of the interests of the beneficiaries. perfect annuity information disclosure to ensure that pension funds safety and profitability, not only to safeguard the general public a sense of security needs, but also to maintain social stability and promoting social harmony necessity. This paper studies the improvement of Occupational Pension issues related to disclosure of accounting information, want to regulate Our annuity benefit the disclosure of accounting information.


First, China's current corporate pension accounting information disclosure problems

(A) of the relevant regulations are not sound
Annuity at the edge of a number of the legislative branch, there is no legislation specifically for a corporate pension accounting information disclosure, information disclosure regulations are scattered among the various Laws and regulations. In today's enterprise annuity for the limited legislative norms, only requirements is very sketchy information on the subjects of which the reporting system, and for not timely, effective delivery of relevant information will be subject to penalties which did not make clear. This makes such a requirement into a "decoration" participation in management and operation of the enterprise annuity there is no real binding the parties simply can not protect people's right to know relevant interests. And there is the concept of vague statutory provisions, general provisions and other issues. In addition, on the other participants in corporate pension plans in information disclosed in the main the existence of intent or gross negligence, it should be borne by the adverse economic and legal consequences did not specify.

(B) absence of relevant supporting policies
The current status of China's enterprise annuity market is the "two hot, intermediate cold", that is, regulators and pension fund management institutions are enthusiastically discussed and prospected the development of enterprise annuity, and pension beneficiaries and sponsor the establishment of enterprises are not enthusiastic. Study The reason for the lack of tax incentives is the main factor. China's current social security tax only on the number of tax incentives, tax incentives on enterprise annuity system, the only policy basis, and only in 2000 the State Council promulgated the <"On improving the urban the social security system pilot program>> on enterprise annuity payment can be less than 4% of their total wage costs before tax as a requirement, and the coverage incomplete. on the Fund's tax policies and operations of enterprise annuity payment individuals to participate in tax policy not specified. in virtually made less attractive enterprise annuity, but also makes a great extent the interests of the beneficiaries is weakened, not even guaranteed.

(C) lack of proper operation of the enterprise annuity checks and balances
As corporate governance structure of pension plans exist in a large number of principal-agent relationships, risk control chain lengthened, can easily lead to a softening of mutual checks and balances. Annuity operations, relationships and trust relationships based on trust as a basis for the. Enterprises and workers and the annuity trust relationship between the trustee; and the Trustee and account manager, Investment institutions, is a fiduciary relationship between the custodian bank. these two relations by its very nature, are based on the trustee or agent trust built up, easy to increase the annuity false or inadequate information disclosure risk.

(D) regulatory system of enterprise annuity fund loopholes
Strict and effective monitoring system is to increase corporate pension accounting information disclosure efforts to avoid the "black box operation" to ensure the authenticity of the information disclosed in the key link. Our government have been released in recent years a number of ways to monitor corporate annuity fund and the initial results, but the whole, have not formed a relatively complete legal system of supervision. and enterprise annuity market does not form a unified and efficient regulatory authorities, pension regulation related to finance, taxation, social security, and professional supervision departments and other regulatory body, there is no relationship between the formation of checks and balances, so prone to multiple regulatory, supervisory or regulatory overlap in the case of vacuum, resulting in low efficiency and even regulatory inefficiency. Therefore, we must accelerate the establishment of a sound regulatory system, improve regulatory performance, to ensure the safe operation of pension assets.

(E) The enterprise annuity limitations of Accounting Standards
Currently, the corporate pension accounting standards specification is not complete. Of annuity payments by the enterprises and their employees, trustees selected by the professional organization for Investment operations, fund custodian, account management, the implementation of market-oriented operation. So annuity accounting entity should involve two aspects: First, the enterprise itself, and second, the enterprise annuity fund .2006 February the Ministry of Finance issued a <"Enterprise Accounting Standards for Pension>>, and standardize the enterprise annuity fund accounting and financial statements reported that the corporate annuity fund as an independent body for the accounting recognition, measurement and presentation, however, the main contribution to the enterprise itself Zuowei how to identify relevant costs should confirm and how the disclosure, what should be disclosed and so on lack of enterprise theoretical guidance for pension accounting, which causes the accounting treatment of nowhere.


Second, build our business model pension accounting information disclosure

(A) constructing a rational system of corporate pension accounting statements
China's <"Enterprise Accounting Standards No. 10 - Enterprise Annuity Fund>> only provides pension management company shall prepare and disclose financial statements of the enterprise annuity fund, including balance sheets, changes in net assets and notes. I believe that to be complete understanding of enterprise annuity, should also include disclosure of the accounting reports of enterprises as the mainstay.

China's Enterprise Annuity in the enterprise should be disclosed in financial reports should include lists and tables outside the table notes. Which lists the contents of the table: 1. In the current balance sheet - long-term assets are listed separately under the "Enterprise Annuity assets of the Fund "the amount of .2. in the current balance sheet - presented separately under current liabilities," expected annuity liabilities ".3. in the income statement - management fees listed separately under the" cost of the enterprise annuity fund "amount. 4. current annuity actual expenditures reflected in the "cash flow" in; special annuity workers is reflected in actual expenditure operations expenditures; special annuity workers is reflected in actual expenditures in Investment spending. sheet Note the contents are: 1. a general description of enterprise annuity plan .2. expenses recognized during the period the amount of annuity .3. the end of corporate pension fund assets, the amount of cost and net assets of .4. the end of the fair value of the annuity and whether impairment, etc. .5. enterprise annuity plan termination and liquidation of the reasons for reduction, reduction, liquidity ratio, and detailed disclosure .6 correlation processing. Investment yield and Investment performance information .7. and enterprise and the impact of pension and related comparability of the other important early events.

(B) the implementation of the forensic accounting report enterprise annuity system to ensure quality of information
Auditor's audit report and accounting statements constitute an indispensable component. China's accounting reports of listed companies to implement a mandatory verification system, however, the information on the disclosure of corporate pension accounting provisions in this regard has not yet introduced. Of enterprise annuity agencies in preparing financial reports without verification by the auditor and directly reported to the authorities. the public in the use of accounting information for decision-making enterprise annuity, when the agencies in the enterprise annuity management activities are legal, compliance is difficult to know. So To strengthen the supervision of occupational pension activities, improve the efficiency of enterprise annuity management, the implementation of enterprise annuity forensic accounting report, the results of the auditing and certification is necessary to open.

(C) the establishment of enterprise annuity system of accounting regularly submit reports
Through the establishment of enterprise annuity system of accounting regularly submit reports, a clear corporate pension accounting report submitted to the time and object. In general, the enterprise annuity accounting reports regularly to the enterprise or the direct management and supervision of pension department submit. Specifically refer to business financial reporting system, the use of interim reports, quarterly and monthly, etc., in considering the premise of cost-effectiveness and improve the frequency of annuity operations reports and ensure stakeholder decision-making information to grasp the first time.

(D) improve the disclosure of personal account information
To meet the needs of workers and improve their participation in corporate pension initiative, enterprise annuity management agency disclosure of personal accounts should be real-time accounting information. Specifically, the first thing to do personal accounts, and practical business is to use personal accounts pension accounting method to each of the participating officers and the amount of each payment is a period of time calculated according to yield the amount of personal account benefits, each off-site and off-site roll-out into the amount of each individual account pension payments and accrued Results balance, record clear, correct accounting, so that beneficiaries can always understand their own personal account of the situation so that the departments concerned to grasp the personal accounts of the various data.

Links to Research Papers Download http://www.hi138.com Third, accounting information disclosure of enterprise annuity system of recommendations for improvement

(A) improve relevant Laws, regulations, building
Information disclosure system generally do not exist independently, it is self-contained, penetration in the relevant Laws and regulations, disclosure rules and information disclosure in the specification documents. Thus, perfect information disclosure system of enterprise annuity is essentially related to corporate pension system, Laws, regulations, documents Complete. now, "" Enterprise Annuity Funds Trial Measures >>,<< enterprise annuity management institutions qualification Interim Measures>> and <"Enterprise Annuity Funds Trial Measures>> together to build our business from the basic framework of the pension system. As These Laws belong to department rules, and the enterprise annuity market is involved in commercial insurance, banking, securities, trust, and other fields, so urgent to the pension laws and legal system was further improved.

With the popularity of enterprise annuity plan and the pension fund market matures, the legislature should be more mature and learn from foreign advanced practice, combined with our enterprise annuity program development and the characteristics of pension fund to develop a more complete <"Enterprise Annuity Law ">, on the governance structure of pension Investment managers, information disclosure, internal controls, independent operations, external audit and other aspects of the system to make more detailed and more operational requirements for regulatory agencies to provide legal support activities , but also for the protection of pension rights and interests of beneficiaries of the fund to provide legal basis.

(B) strengthening corporate governance structure of pension mutual checks and balances within the
Sound internal control system is to strengthen internal controls to achieve effective and timely means of information disclosure. In the enterprise annuity management internal control structure, the most important part is keeping the main parties of supplementary pension checks and balances between the operation effective. by <<Trust Law ">, trustee enterprise annuity fund and promised on behalf of management of disposal of the property who should be in the center of the implementation of the dominant position of trust, pension fund management is responsible for the ultimate responsibility for operating the main body of the pension commitment to the ultimate holding company and the insured legal responsibility. When the joint implementation management and enterprise employees the responsibility of the client, the one representative of the interests of business management, and staff represent the ultimate beneficiaries. in the enterprise annuity fund selected representatives, both parties can choose the most appropriate agent of the common interests of both sides, and both parties because of mutual supervision and mutual restraint, but also greatly reduces the possibility of internal control, help to improve corporate disclosure of corporate pension accounting transparency.

(C) regulate the operation of pension Investment company
The end of 2006, China 91 billion yuan of enterprise annuity fund accumulated total of 158 billion according to <"Enterprise Annuity Trial Measures>" and "" Enterprise Annuity Funds Trial Measures>> provided by a qualified organization management .2006 market operations for the fourth quarter, the average annuity rate of return of 9.6% in first half of 2007, the average yield of 24.5% in the first three quarters, the average yield was 40.6%. The above data from a side reflects the normal operation of China since the implementation of enterprise annuity, the quality and quantity are improved. but we can not be blindly optimistic, corporate pension fund's Investment operations, there are still many hidden dangers, such as the Investment Manager's own situation or the significant violations do not stop there, do not report, in violation of the provisions of Investment operations, existence of potential risks and other issues are still outstanding.

How to regulate the investment manager of investment operations, at this stage to highlight the necessity and urgency. Construction of enterprise annuity fund investment manager of the internal control mechanism is the best way to solve this problem. Corporate pension fund investment manager's internal control is A self-discipline, is fully considered on the basis of internal and external environment, through the establishment of institutional mechanisms for management, implementation of operating procedures and control measures and the formation of the system. These procedures and measures can be achieved within the implementation of mutual supervision and mutual checks and balances to prevent false and fraudulent information disclosure. Construction of the internal control mechanism can be investment managers from the following four aspects: the establishment of sound corporate governance structure; a reasonable allocation of internal control system, organizational structure and responsibilities; establish a standard investment management business processes; an effective internal audit control.

(D) to strengthen information disclosure on corporate pension accounting regulation
Improve the information disclosure system will enable corporate pension fund managers, investors and other parties to obtain sufficient information to reduce false or incomplete information lead to the risk of error and loss, and this was also around the world monitoring the success of the enterprise annuity fund experience . the information disclosure system is not generally exist independently, and by the regulatory authority to introduce regulations in the "mandatory disclosure" clause, requiring the enterprise annuity fund managers must provide complete, accurate, understandable information disclosure, such as pension scheme, financial situation, plan costs, investment strategies, services, income and other characteristics.

On the one hand, government departments to strengthen market regulation and supervision to develop enterprise annuity program, those who do not develop enterprise annuity plan or not to carry out registration procedures, to be resolutely corrected. To establish a regular reporting system, management agencies to submit quarterly and annual business reports, Ministry of Labor and Social Security shall submit respectively the industry and regulatory authorities. to strengthen the management of institutions supervision and inspection, violations and issued a rectification notice to be corrected, until the abolition of management qualifications. refine and implement the information disclosure system so that the public right to know. the establishment survival of the fittest of the regulatory mechanism, non-compliance of the institutions of the "bright card" system.

On the other hand, for the annuity, the need for disclosure of information and objects on the field, we must strictly implement the information disclosure standards in the payment, investment, management, selection and other aspects of organization need to provide their clients with timely, complete and effective reporting . is not fair for avoiding disclosure of related party transactions to be effective. transparent information and supervision is to prevent the non-fair related party transactions of the most effective way to weigh the information on costs and benefits of disclosure regulation in order to achieve the purpose of maximizing the efficiency of supervision.


[References]
[1] Xiaodong quarter. Our system of corporate pension accounting problems and recommendations [J]. Accounting Monthly, 2006, (7).

[2] Luo Shao Lin. On corporate pension accounting of thinking [J]. International Financial Research, 2007, (8).

[3] Lilian You, et al. Enterprise annuity fund operation of [M]. Hunan University Press, 2006.

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