Hospitals under the new accounting standards of financial accounting system

Abstract: The new <"Enterprise Accounting Standards>" (click the "New Accounting Standards"), after the official implementation of listed companies, hospitals how to adapt to new developments and management needs, reform the existing <<hospital accounting system>> has become the subject of attention. Based on the hospital's lack of financial and accounting system with the new accounting standards on the hospital's role in the current financial system, the explanation and put forward the existing financial accounting system, improve the hospital's proposal.

Keywords:: new accounting standards, hospitals, financial accounting

With the deepening Health system reform, in particular, the gradual improvement of the medical insurance system, hospitals face the survival of the fittest in the market choice, which requires hospitals to be from the management system, the internal operating mechanism and other aspects of in-depth, comprehensive reform. Financial accounting system followed by the financial accounting rules, methods and procedures in general. Current <<hospital accounting system>> is <<Public Accounting Standards>> as the basis for and learn from the success of enterprise accounting system reform and foreign non-profit experience organizations developed on the basis of accounting thought out. Practice has proved that the existing <<Hospital Accounting System>> Hospital, promoting Economic development, strengthening financial management, accounting behavior and the standardize quality of accounting information has played a great role. But the 21st century, the current hospital accounting system and the lack of inherent limitations are gradually exposed. Currently, the new accounting standards after the official implementation of listed companies, hospitals how to adapt to new developments and management needs, reform the existing <<Hospital Accounting system>> has become the subject of attention. In this paper, the new accounting standards based on the existing financial accounting system, the hospital made some thoughts.


First, the current <<hospital accounting system>> shortcomings

Since the reform and opening up across the country hospitals under the <<hospital accounting system>> requirements, has developed a series of financial management system, effectively strengthening the financial management of the hospital. Simple reproduction in the maintenance of the hospital while the Health sector to promote development and achieve increasing the value of state-owned assets. Meanwhile, in the accounting practice, most hospitals actively use modern management tools to achieve the accounting, many large hospitals chief accountant is responsible for the implementation of the system, effectively promoting the standardization of accounting and modernization. but the financial accounting system, there are still considerable deficiencies.


Second, the current hospital financial accounting system deficiencies

(A) inflated the total amount of fixed assets
Performed in the hospital <<hospital accounting system>>, fixed assets are not depreciated. Hospital of fixed assets on the balance sheet items reflect only the amount of the original value of fixed assets does not reflect the actual loss during use, resulting in the carrying of fixed assets value and actual value of a serious departure from, no way reflect the usage of fixed assets and Condition, is not conducive to users of financial statements to understand the real situation of fixed assets.


(B) Capitalization of intangible assets is not to
Health care industry is high-tech, high-risk industry, and its intangible assets, mainly for medical technology and patents, non-patent technology, and the reputation of the hospital. The hospital in order to meet the needs of their own development, must carry out some of the larger Economic value to give their own Research projects, the cost of larger, if not to its capital of, directly reflected in current expenditure, the balance of payments surplus will not be true, is not conducive to assessing the current financial results.


(C) incomplete extraction of bad debts
Hospitals for bad debts will increase in patients with social co-ordination and increasing, even if the implementation of the hospital medical insurance system is very standard, will take a "super performance" in the form of deduction, sometimes up to 30% reduced rate. Although the hospital can accounting for bad debts, provision for bad debts, but far less than possible bad debts. Provision for bad debts by the ratio of Extraction of national unity, and the bad debt loss has occurred shall be subject to approval in the financial sector write-off, resulting in a large number of bad debts, bad debts long hanging in the account, and impede the flow of funds, but also enable the hospital to indicators of liquidity, solvency distortion, affecting the decisions of investors.


Third, the new accounting standards of financial accounting system reform and the need for hospital

With the deepening of hospital reform, there has been run medical forms, the trend of diversification of investors. Accounting is always dependent on the socio-Economic environment must exist, with developmental, integration of theory and practice characteristics. The new accounting standards issued by the original system theory and related systems had a tremendous impact, as the growing Economic activities of the hospital provided a useful measurement, recognition method, therefore, learn the new accounting standards improve the existing hospital accounting system, accounting for hospital financial operations , supervision, different types of hospitals in the accounting, financial reporting convergence imperative. Meanwhile, according to new accounting standards, drawing on international general report system, the hospital's equity accounts, financial reporting and other contents of the presentation the statements and amendments to the occurrence of various types of hospital the same or similar transactions and events to achieve the same caliber of accounting information, each comparable.


Fourth, the new accounting standards of financial accounting system reform measures to the Hospital

(A) improve the method of depreciation of fixed assets
Under the new accounting standards, I propose to abolish the "Fixed Fund" account, an additional accumulated depreciation account in the balance sheet as a deduction item of fixed assets, so that hospitals can truly reflect the financial statements of its assets, net assets and the balance of payments balance situation. Under the current corporate financial system, the hospital actually has no value inventory, technically obsolete equipment are recognized as an asset, which led to false corporate assets, corporate financial information provided should also lost authenticity and reliability. I propose the reference <"Enterprise Accounting Standards - Fixed Assets>> requirements, and follow-up expenses related to fixed assets, if possible, so that Economic benefits flow to the enterprise than the original estimate, such as extension of fixed assets life, or a substantial improvement in the quality of products, or to make substantial product cost reduction, it should be included in the book value of fixed assets. so I suggested that "fixed assets" added under the heading "Fixed assets decoration" detailed subjects, accounting Hospital outpatient building, renovation and maintenance costs inpatient wards to reflect the renovation of fixed assets due to the increase in value, to ensure that the value of fixed assets, accounting information is true and reliable.


(B) strengthening the accounting of intangible assets
Hospitals involved in a wide range of intangible assets, and are mostly the products of knowledge and spirituality. If concept and management of medical services, medical Research projects and results, the image of hospitals and medical reputation, brand and reputation and other hospitals, this author suggested the balance sheet at the hospital added to "intangible assets" subject to the full circumstances of assets reflect the hospital, so that the accounting information to better meet the needs of the Health care market. In addition, it should be reasonable recognition, measurement and accounting of intangible assets hospitals, and should be of average amortization, included in the cost of medical services provided outside.


(C) make provision for bad debts of the extraction
Hospital bad debt principal and "due care under" related to this, provision for bad debts can not be extracted, "the medical expenses of patients in the hospital," included, should be "due care under" plus "patients in the hospital medical bills receivable" by "advance Health care models" plus "other receivables" as bad debts extraction base. For some who can not recover the large amount of bad debt, without affecting the current balance of the premise, to be written off directly from the expenditure.

In short, the deepening of China's health system, hospital diverse forms of ownership coexist, the reality of market competition, the existing <<hospital accounting system>> running has been showing many of the above deficiencies. Therefore, I propose the relevant departments in accordance with the new accounting standards, combined with the needs of hospital economic management, timely and instructions on the accounts, accounting procedures, accounting transaction processing and accounting reporting requirements are modified to meet the accounting workers, hospital administrators and government investors needs.


Main references
[1] Xu Yuhong accounting system to improve the existing hospital Suggestions [J] Henan Radio & TV University, 2006 (3): 23
[2] Li, Dong Jianguo improve hospital turn to the idea of ​​the balance sheet [J] Health Economics Research, 2002 (8): 46
[3] Zheng Lichuan, Han Xiaoqin <<hospital accounting system>> deficiencies and suggestions for improvement [J] Accounting Communications, 2005 (1) ,77-78
[4] Qin water side of the hospital accounting system reform and innovation [J] Chinese Health through wells, 2005.24 (5) :76-79
[5] Zhang Hong current hospital accounting systems and improve a number of issues [J] Health Care Management, 2006,18 (2) :49-50

Links to Research Papers Download http://www.hi138.com four new accounting standards of financial accounting system reform measures to the Hospital

(A) improve the method of depreciation of fixed assets
Under the new accounting standards, I propose to abolish the "Fixed Fund" account, an additional accumulated depreciation account in the balance sheet as a deduction item of fixed assets, so that hospitals can truly reflect the financial statements of its assets, net assets and the balance of payments balance situation. Under the current corporate financial system, the hospital actually has no value inventory, technically obsolete equipment are recognized as an asset, which led to false corporate assets, corporate financial information provided should also lost authenticity and reliability. I propose the reference <"Enterprise Accounting Standards - Fixed Assets>> requirements, and follow-up expenses related to fixed assets, if possible, so that economic benefits flow to the enterprise than the original estimate, such as extension of fixed assets life, or a substantial improvement in the quality of products, or to make substantial product cost reduction, it should be included in the book value of fixed assets. so I suggested that "fixed assets" added under the heading "Fixed assets decoration" detailed subjects, accounting Hospital outpatient building, renovation and maintenance costs inpatient wards to reflect the renovation of fixed assets due to the increase in value, to ensure that the value of fixed assets, accounting information is true and reliable.


(B) strengthening the accounting of intangible assets
Hospitals involved in a wide range of intangible assets, and are mostly the products of knowledge and spirituality. If concept and management of medical services, medical Research projects and results, the image of hospitals and medical reputation, brand and reputation and other hospitals, this author suggested the balance sheet at the hospital added to "intangible assets" subject to the full circumstances of assets reflect the hospital, so that the accounting information to better meet the needs of the health care market. In addition, it should be reasonable recognition, measurement and accounting of intangible assets hospitals, and should be of average amortization, included in the cost of medical services provided outside.


(C) make provision for bad debts of the extraction
Hospital bad debt principal and "due care under" related to this, provision for bad debts can not be extracted, "the medical expenses of patients in the hospital," included, should be "due care under" plus "patients in the hospital medical bills receivable" by "advance health care models" plus "other receivables" as bad debts extraction base. For some who can not recover the large amount of bad debt, without affecting the current balance of the premise, to be written off directly from the expenditure.

In short, the deepening of China's health system, hospital diverse forms of ownership coexist, the reality of market competition, the existing <<hospital accounting system>> running has been showing many of the above deficiencies. Therefore, I propose the relevant departments in accordance with the new accounting standards, combined with the needs of hospital economic management, timely and instructions on the accounts, accounting procedures, accounting transaction processing and accounting reporting requirements are modified to meet the accounting workers, hospital administrators and government investors needs.


Main references
[1] Xu Yuhong accounting system to improve the existing hospital Suggestions [J] Henan Radio & TV University, 2006 (3): 23
[2] Li, Dong Jianguo improve hospital turn to the idea of ​​the balance sheet [J] Health Economics Research, 2002 (8): 46
[3] Zheng Lichuan, Han Xiaoqin <<hospital accounting system>> deficiencies and suggestions for improvement [J] Accounting Communications, 2005 (1) ,77-78
[4] Qin water side of the hospital accounting system reform and innovation [J] Chinese Health through wells, 2005.24 (5) :76-79
[5] Zhang Hong current hospital accounting systems and improve a number of issues [J] Health Care Management, 2006,18 (2) :49-50 Links to Research Papers Download http://www.hi138.com