On the implementation of internal company research accountant

[Abstract] Based on the Chongqing Trading Company (Group) Co., Ltd. (hereinafter referred to as "Chongqing Trading Company"), accountant in the form of internal implementation, effectiveness, critical analysis of existing problems, put forward a sound system of appointing countermeasures Enterprise Group, in the hope improve the internal accountant of businesses benefit.

[Keywords:] Chongqing Trading Company; Group; accountant; Strategy

Accountant first applied to the Chinese government owned enterprises are increasing the value of assets and the financial allocations of the administrative supervision of the use of funds and institutions. In recent years, with the socialist Economic system reform, also widely used in China accountant Enterprise Group, parent company of the subsidiaries within the financial supervision and control. conglomerate now, because of information asymmetry between the parent companies, subsidiaries for their own local interests, often to damage the overall interests of the parent company. to management accounting information distortion and protect the rights of the parent company as a business owner, business groups according to the national pilot new ideas accountant accountant in-house implementation. In view of this, I implemented system of appointing trading company in Chongqing, for example, explore how to further the company improve internal accountant.


First, the trading company in Chongqing historical background of the implementation of appointing

Chongqing Trading Company is the largest flow of commerce in western China Group, in recent years, with the deepening internal reforms, accelerate structural adjustment, has formed a wholly-owned, 18, holding child (sub) the company's state-owned conglomerates. The face of the rapid Development of Chongqing Trading Company situation, the group set up financial institutions and accounting personnel management is fragmented, resulting in corporate financial oversight and control functions not fully realized.

(A) of the different accounting systems and affect true and accurate accounting information
Chongqing Trading Company financial statements under the 18 units, accounting covering commercial distribution, real estate Development, hotel and catering, storage and transportation, maintenance services and other industries. The management of financial institutions and personnel constraints, the Group Finance DepArtment is difficult to group-wide accounting unified and standardized approach, the subsidiary accounting systems and accounting are not the same caliber, influence the accuracy of accounting of business results.

(B) of the funds distributed precipitation, the efficient use of working capital
Group II, the company opened nearly 100 bank accounts, a lot of money scattered in various accounts, idle funds precipitation, is not conducive to the unity of group allocation of funds has seriously affected the efficiency of fund utilization.

(C) supervision and control, fatigue, severe loss of state assets
Group subsidiary is difficult to monitor the financial activities of individual subsidiaries exist adjustable costs, inflated profits; free disposal of assets, to provide security; ineffective investment, redundant Development; balance high proportion of bad assets and other issues, the state-owned serious loss of assets.


Second, Chongqing trading company of the implementation of the status of accountant

(A) Chongqing Trading Company implemented the basic form of the internal system of appointing
Since 2005, Chongqing trading company owned 18 wholly owned or holding subsidiaries of Chief Financial Officer (Manager) appointed the accounting, adhere to the "unified delegation, unified management, unified examination," the accountant.

1. To appoint officers to concentrate on the accounting principle of unified delegation
(1) set up a special Administration, their counterpArts in management delegate. Group delegated management of the Ministry of Finance to establish an accounting office responsible for accounting assigned target group planning, system construction and daily management. Specific responsibilities: accounting delegate selected to organize the business delegate training; regularly hold special meeting to appoint officers to listen to report on the work of assigned staff work to solve difficult problems; to help delegate the work to establish normal financial environment, protect the legitimate rights and interests assigned personnel; follow-up examination Kong delegate appropriate circumstances, to complete the assigned personnel assessment and evaluation.

(2) to give the delegate the rights and responsibilities to match. <<Measures for the Administration of Chongqing Trading Company Chief Financial Officer>> clear: to delegate overall responsibility for the presence of corporate accounting and Financial Management; responsible for corporate cost accounting, control and evaluation; in the enterprise Development, investment and financing plan, the internal distribution of program Development, review and implementation; important Economic activities in the enterprise, the review of major Economic contracts; organization annual financial budget and final accounts of companies.

(3) in wages, benefits, etc. to protect. To ensure the independence of the work of assigned staff, the Group will delegate the treatment and sent into the unit decoupled, unified management by the Group Finance DepArtment of their wages, bonuses released.

2. To establish and improve the system with the appointment system supporting measures
(1) the accreditation system. Delegate must comply with the provisions of the qualification, ability and political integrity, high professional quality and political quality of the assessment confirmed by the relevant depArtments of the Group after the board of directors for approval.

(2) joint sign management system. Development <<Chongqing Trading Company signed joint management approach>>, clearly defined subsidiary income and Economic activities of major financial matters, the implementation by the Chief Financial Officer (Manager) co-signed with the legal representative of the approval system.

(3) performance appraisal system. Development <<Chongqing Trading Company evaluation of accounting delegate management approach>>, defined by the Group accounting delegated management office responsible for organizing the annual appointment and term of office personnel assessment and evaluation.

(4) debriefing system. Appoint officers or leave the end of the year when the delegate authority to the detailed report on its work. Debriefing report sent into the unit by the responsible person delegated authority to sign into my file comments.

(5) reporting system. The work of the periodic system of reporting and reporting on important matters. Periodic reporting system provides: delegate delegated authority should be quArter of a written report on the work.

(6) training system. According to actual needs, the Group adopted various forms of training in a planned and organized professional skills of assigned staff and ethics training, and constantly improve the professional quality of assigned personnel.

(B) the implementation of the internal system of appointing Chongqing Trading Company achievements
1. Delegate as a bridge between subsidiaries and the Group to improve management efficiency and Economic benefits. Appoint staff through in-depth understanding of business management the ability to detect problems; through regular reporting, the Group's operations and financial position of subsidiaries more comprehensive and accurate grasp of the Group and its subsidiaries more smooth communication and coordination between the Group subsidiaries more informed investment decisions, economic efficiency has improved significantly. According to statistics, in 2008 achieved sales of 26.2 billion yuan in Chongqing Trading Company, to achieve total profit of 270 million yuan, assets exceeded 12.0 billion.

2. The implementation of major issues associated sign systems, the implementation of operations before, during, and afterwards the whole monitoring. Group developed <<Chongqing Trading Company signed joint management approach>> couplets were made to check the content and clearly defined procedures and improve the internal control system and supervision system. Financial Officer signed by joint participation in business activities, the implementation before, during, after the full monitoring, to timely identify problems and correct violations, resolve risks, standardize the operation.

3. Unified and standardized accounting, accounting information quality improved significantly. Group appointed accountants to play a central management advantages, continue to regulate the accounting subsidiary, United Group's internal Financial Management and accounting system to ensure regulatory and accounting compliance. Through large standardization of accounting based on the scale of the work inspection, rectification of problems to ensure the accuracy of accounting information and timeliness of financial statements and enhance the credibility of the annual accounts.

4. For the centralized management of funds to create conditions for efficient operation. Appointing the implementation of the Group Settlement Center and the establishment of centralized management of funds has created favorable conditions for efficient operation, better alleviate the Group operates, the funding gap to ensure that the Group's business operations normal. Meanwhile, the Group also secured through the strengthening of its subsidiaries, loan management, use of funds to ensure the safety of the Group, allow the Group to maximize the limited efficiency in the use of funds.

(C) Group companies implement the existing problems within the system of appointing
1. Group company implemented system of appointing the legal basis. So far, except <"Enterprise Financial Management of State Capital and the Interim Measures>> Article VIII:" The competent financial authorities of the state-owned part of the capital and Financial Management functions, can be entrusted to the parent company. the parent may apply to a subsidiary wholly-owned subsidiary or through the Board of Directors has delegated control over the subsidiary financial officer or chief financial officer ", the property rights assigned directly to the Chief Financial Officer of the investee lack of other clear legal basis. New "<Law>> Forty-seventh article: Board of Directors of the shareholders shall exercise the following powers: to appoint or dismiss the manager and his remuneration and the nomination according to the manager decided to appoint or dismiss vice president, financial officers and their remuneration. and authorized to operate state-owned assets by property relations unit of the invested enterprise appointed to Chief Financial Officer, and Chief Financial Officer under the leadership of board of directors has a fundamentally different position, this behavior is also no clear delegation of legal support .

2. Finance Director and Chairman of the relationship. In view of relations between wholly-owned or controlled, the Group subsidiaries the right to send key members of the Board, and in fact the right to decide candidates for chairman and chief financial officer. Chairman and as a property representative, should bear the state-owned assets of all the responsibilities, and abide by the clean, honest, Law-abiding business obligations. appointed Chief Financial Officer of the primary duties of the operator on behalf of business owners and their business activities, supervision and control of decision-making programs. But in practice, because no valid legal basis for the relationship between the chairman and chief financial officer, there are some problems. First, there is no strict implementation of the individual subsidiary Union Chairman to sign management system, bypassing the Chief Financial Officer of major decisions, funds have been transferred to the Finance Director was retroactive. The second is that some three financial supervision and the absence of problems. trading company in Chongqing sent only to two subsidiaries under the Chief Financial Officer, a few large companies to under three levels of secondary school under the Chief Financial Officer of the company, and for some of the smaller scale appointed Chief Financial Officer of three companies did not. individual subsidiaries to circumvent oversight to divert attention, the Group does not agree or do not meet the requirements of the project on the operation of three companies to avoid supervision. Third, the individual does not strictly enforce the system of financial controller, there is offside the situation is not in place, some issues beyond their own joint signing authority, and some because of the sensibilities, chairman of unconditional obedience, resulting in the absence of regulatory role.

Links to Research Papers Download http://www.hi138.com 3. The accounting officers re-appointed oversight. Expatriate chief financial officer as a group, there are also monitoring the issue, that is, supervision of assigned staff and then to promote financial officer conscientiously perform their duties, to prevent unauthorized violations, abuse of power. Financial Officer may also by its own ability, literacy, moral constraints, so that can not be fully representative of the Finance Director of the interests of the owner to exercise supervisory power. particularly when the chief financial officer and general manager of the cross as the Corporate Property division, Chief Financial Officer not to exercise supervision, And as in certain positions in corporate management, then the chief financial officer is not only entitled to take the remaining profits are right, but also has the right to change the corporate profits, which obviously will aggravate the financial director and the interests of operators of convergence.


Third, improve the company's Strategy Group within the system of appointing

(A) the accountant into the legal system
The existing accounting personnel appointment is <"Accounting Law"> and other accounting rules and regulations to be prescribed, but it is in some ways no longer meet the new situation, the pilot of the system of appointing the lack of appropriate legal basis. Economic Laws and regulations is developed in a certain period, there are some limitations. Therefore, when after a certain stage of economic development need to be revised. practice accountant, you can regulate legitimate business enterprises to promote their commitment to enhance economic efficiency and improve the efficiency of resource allocation . Therefore, it is necessary to provide a legal basis for the development of accountant.

(B) a clear duties and powers, coordinate all aspects of the relationship between
Accounting duties and powers assigned personnel units should be designated as the specific conditions and the importance of accounting assigned staff positions may be. Delegated authority staff should be clear to enterprise groups, the appointment of accounting personnel should be limited to accounting, management, decision-making functions of supervision and business leaders to focus on whether the negligence, corruption and fraud; on the supervision of the financial revenues and expenditures are reasonable and legitimate; on the monitoring unit is to provide a true and reliable accounting information; on the monitor whether the implementation of the investment decision-making units of increasing the value of such goals. different levels of accounting regulators should focus on different goals, therefore, the actual situation of enterprise groups to develop assigned according to Chief Financial Officer, Chief Accountant or Accounting Supervisor of the specific duties and authority.

(C) select the appropriate manner and scope of delegated
Accountant Appointment should be based on different forms in different situations. If regardless of objective reality, blindly follow the trend, even if the appointment has taken the form of accounting, the opposite may also bring practical results. For the state-owned enterprises, it shall send its financial Director, which is given to this great country to better safeguard the interests of shareholders. In this case, the appointed chief financial officer and general manager of shareholder oversight on behalf of the management of state-owned business activities can also be assigned different levels, that the Government appointed finance team enterprise group, enterprise-owned subsidiary of the Group again appointed chief financial officer. And the state-controlled enterprise groups, to appoint accounting officers and other shareholders when they consider the interests of coordination to avoid unnecessary conflicts. Therefore, For businesses within the Group appointed accountants, should be combined with group practice, appointed by the accounting staff to implement the Parent Company's Financial Management and supervision.

(D) strengthen the building accountant
First of all, should be clearly defined and delegated management of the main accounting delegate body. Delegate is appointed principal accounting delegate agency of the accounting, in accordance with the "who invests, who is appointed" principle, the system of appointing the delegate body should be business owners, business owner is the designated department accounting personnel, it is only responsible for Administration selected from the accounting Accounting and sent to affiliated enterprises, responsible for the appointment and removal of the final incentive to appoint accounting decisions, and the specific work delegated by the accounting authority responsible organizations. distinguish between delegate and delegate management of the main accounting body not only avoid the single subject of delegated management accounting and business property owners legal representative of the different variety of conflicts, but also help reduce the workload of appointed bodies, clear duties and powers of the agencies. Second, appointed personnel to establish accounting incentive and restraint mechanisms, systems and regulations by persons appointed by the behavior of accounting constraints, containment and prevent the use of authority to delegate Xunsi accounting fraud occurred.


[References]
[1] Wang Dianlong. Accountant Theory and Practice [M]. Beijing: Xinhua Publishing House, 2001.2.

[2] Sun Joun-yung, Liu Jiasong. Corporate Governance and appointing [J]. Finance and Accounting, 2002.8.

[3] Lu Xiang. Some Thoughts on the accountant [J]. Economist, 2005.4.

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