On China's government accounting accrual Reform

[Abstract] new public management movement, the government of traditional cash basis of accounting under severe impact, became the governments, including China's accounting reform in developing countries an important topic of the article from the basis of our current government accounting status analyzes the implementation of government accounting accrual need, feasibility and hospitals, university accounting system reform draft of the impact of government accounting, our government made the reform of accrual accounting recommendations.

[Keywords] government accounting; budget accounting, accrual; cash basis

1980s, new public management movement, managed to promote service-oriented country to change state, emphasizing the responsibility of government performance and its government, many countries, including China began to focus on government assets, liabilities, condition of the measurement and management, resulting in led to a field of government accounting accrual accounting reform wave.


First, the basis of the status quo of China's government accounting

Government accounting should have been fully reflect the government's Economic resources, obligations and duties of the current activities of the whole picture of the system, China's government accounting in general continued in the current budget accounting system for the system of rules implemented since 1998 <<general budget accounting system >>,<< administrative accounting system>> and <<institution accounting system>> to cash basis accounting as the main basis of the lack of government reflects the overall Economic situation, so many people believe that "China does not exist true sense of the Government Accounting "(Liu Yuting, 1996, but even so, the predecessor of the Chinese government accounting is accounting that determine the budget should be no doubt.

Basis of accounting as defined under the IFAC, divided into cash basis, modified cash basis of accounting, modified accrual and accrual basis of accounting four kinds in the field of government accounting, in fact, there is no pure and the pure accrual or cash basis of accounting, generally between the two extreme adjustment, applied to varying degrees, so a more correct basis of accounting.

Most scholars believe that our government is based on cash basis of accounting, based on fact, as early as 2001, China's Ministry of Finance released <<general budget accounting system, the Interim Supplementary Provisions>> in, can be used for individual accrual items <<institution accounting system "allows the operating revenue and expenditure operations using accrual accounting in addition, the accounting system in the context of public institutions have clearly defined the hospital accounting system using accrual basis, although this responsibility accrual is not the full sense of the accrual, but only for part of the assets, liabilities. Thus, the basis of our current government accounting is not entirely cash basis of accounting, but a modified cash basis of accounting.


Second, our government accrual accounting and the feasibility of the need for reform

(A need for reform of accrual
Many domestic literature are referred to the many shortcomings of cash basis, accrual advantage, such as working Meng Chen (2002 that "the basis of the cash basis of accounting to reflect the fiduciary responsibility of a narrow, limited and financial information provided less relevant for the new public management of the international competitive environment to maximize government performance targets, information transparency for the public's responsibility to maintain state-owned assets, it may do nothing, and sometimes even misleading government decision-making. "Zhang Mao (2003 that the accrual by the division of revenue expenditure and capital expenditure, can effectively control and state-owned assets supervision and Wang Yong Jun (2004 that the cash basis of accounting information is usually based on "bad result after the occurrence of" information , there is "narrow," "distortion" of the inherent weaknesses, which for the prevention of financial risks, financial management and structural reforms are at risk.

Thus, the many advantages of accrual accounting as our government requires the accrual of the cause of reform, in fact, accrual accounting will also have a cash account, the two systems should not just be seen as right and wrong this is He, of alternative Government Reform accrual accounting does not need to completely abandon the cash basis of accounting, because the introduction of accrual cost of the investment will lead to the government, its complexity may lead to unacceptable government management personnel, etc. the government had to consider the accounting reformers.

(B accrual feasibility of reform
Many scholars believe that China's reform of government accounting accrual should be gradually introduced, such as Li Fat (2001 claims, the best from our government's cash basis accounting system extended to modified cash basis of accounting, when conditions are ripe and then gradually revised accrual transition Chen Qi (2003 that, given the inherent defects of accrual and the introduction of barriers, not a one-time government accounting, a comprehensive introduction of accrual basis. Qingcheng (2003, Zhu Xuefeng (2003, Zhang Xuan, Hui-Fang Zhao (2007 and others have similar views.

For our government the need for accrual accounting system reform, some scholars have a negative attitude, such as Wang Yongjun (2004 that China's current budget accounting is not due to major defects in the inherent limitations of cash accounting basis, accrual basis of accounting shift timing and conditions are not ripe, but at this stage does not exist to give up on a cash basis instead adopted the accrual basis of pressing pressure, and thus along the direction of reform was not a budget accounting reform a priority. Xu Zhen Sui (2006 view, cash basis In the current and future periods should remain as a unit of our government's main revenue and expenditure accounting recognition and measurement basis if you really want in the budget unit in the implementation of accrual accounting to meet the cash flow to reflect and control.

And some scholars hold the opposite view, such as, Chengxiao Jia, Zhang Qi (2009) from the government accounting environment analysis, and thinks that our government accrual accounting reform conducive to the implementation of government performance appraisal system, suitable for China's current government accounting accrual reform. Zhang Qi, Zhang like to, Chengxiao Jia et al (2009 through the government accounting environment, information and other Research stakeholders that our government internal and external stakeholders have a strong will to get government information. The establishment of government accounting reform, implementation of the reform of public administration, public sector personnel and institutions to further deepen the reform of household registration system, optimize, improve the tax system, an intense political competition and other institutional factors are conducive to implementation of the reform of government accounting.

China currently has the possibility of reform, the government accounting environment for Research, data analysis seems to be more than simply convincing theoretical analysis, however, the key issue is the introduction of accrual budget information will be created on a misunderstanding For example, if conducted in accordance with accrual accounting for revenue claims in this way may exist, would have a virtual balance of payments problems and the Government regulate the use of accrual balance of payments situation will greatly increase the probability.


Third, the two "draft" of our government accrual accounting impact of the reform

Ministry of Finance issued in November 2009, the university, the hospital accounting system of the "draft", where <<university accounting system>> The draft described the introduction of accrual of the parallel mode, seems to imply that our Government accounting reform may be the basis towards the development of dual so-called dual-based system, refers to the same subject under the accounting basis for the daily use of two accounts of accounting records, the formation of two separate sets of accounts and preparation of two sets of different accounting basis accounting statements such as, in the university accounting draft, by setting the "budget revenues", "budget expenditure", "current balance" "Balance" four budget accounts, and financial accounts for parallel accounting, and the corresponding , the final summary of the budget accounts for the budget balance sheet, financial statements and balance sheets and income for the fee schedule. from the balance sheet "assets + expenses = liabilities + net assets + income" to the accrual system-based "assets = liabilities + net assets", to revenue income and expenditure table fee schedule, the report is based on modified accrual basis of income and expenditure, this can provide accurate cost information. Links to free download http://www.hi138.com I believe that the "draft" is the promulgation of the government since 1998, accounting theory, accounting Research for the government's results show, first, reflects our government accounting reform step by step reform ideas. the promulgation of the draft only institutions in the pilot reform of universities and the hospital, then to the entire institution accounting system reform, and ultimately complete governmental accrual accounting reforms. Second, the draft reflects the government accounting reform in advance of accrual deepened from the university accounting system, the draft of view, from the original cash basis of accounting-based extension to the modified accrual basis, and hospital accounting system of the draft, the original implementation of the modified accrual to further broaden the scope, such as increasing the "expected liability 'accounting content. Finally, the draft accounts appear in the parallel set of ideas in recent years, scholars have also Government accounting practice "double base, double target, double system" of thinking, that cash basis and accrual basis of parallel operation, budget management and the government were to achieve the twin objectives of asset management, and the formation of the government budget and accounting system financial system.


Fourth, our government accrual accounting reform proposals
Government of China promulgated the draft of accrual accounting reforms started, the future reform of government accounting accrual will be how to proceed, I propose the following:
(One for the accrual basis of reform to create the necessary conditions
At this stage, our government accrual accounting reform first need to budget accounting, basic accounting and other issues carefully, and in recent years through the accrual of foreign background of the reform, motivation, experience and lessons learned to sum up, in promote the reform of accrual, we must clearly recognize that reform takes the cost and benefits. Second, to strengthen the financial sector accounting staff accounting theory and practical training for a variety of accounting-based meaning and adaptability to have sufficient knowledge to avoid the accrual basis of accounting personnel reform of resentment. Finally, around the pilot experiments in fact, in recent years in Hainan and other provinces and the Ministry of Finance has conducted a pilot reform of accrual, but also achieved some results, such partial scope of the experiment can also be extended to many other areas, such as interest on debt, loans, subsidies and other transfer or attempt to use modified accrual accounting to record and report.

(B accrual reform must be considered before the current reform of the budget accounting system
1 for institutions to define the scope of accounting
Hospitals, university accounting system reform will inevitably spread to the whole issue of reform of institutions of accounting, but in our country, the situation is more complex institutions, and some self-financing institutions, tend to enterprise features, and some institutions tend to non-profit organizations, public welfare more features. all the different sources of funds and institutions, not exactly a standard accounting system to develop, so I propose, before carrying out the reform of institutions of accounting, is bound to the institutions of accounting in scope for clearly defined. Enterprise and the financial resources or completely decoupled from institutions should adapt to the system of corporate accounting standards and the relevant provisions, and to rely on grant funds, non-profit as the main purpose of the "non-profit organization" should be included in the institutions of accounting for accounting, included in the scope of government accounting.

2. Administrative accounting and financial accounting system to build the total budget
At this stage of China's reform of government accounting environment and source driven by the needs of budget management system of which our country carried out by a centralized treasury payment system, reform of departmental budgeting, the reform of government revenue and expenditure categories have shown our government emphasis on capital centralized control of its budget is most concerned about is safety, followed by the use of budgetary resources was stressed that the effect, so at this stage our government should serve and submit to accounting-based budget, priority should be to build a strong budget accounting the main changes to the existing budget accounting only "accounting" function, the lack of "oversight" function of the status quo.

Therefore, I propose in accrual accounting for government reform, you should break the existing organization based in the "third" pattern, the general budget accounting and administrative accounting for the merger, the concept of the expenditure cycle, that is built to "appropriation, commitment, verification, payment" cycle of budget accounting system, making the general budget of the central accounting department to track the spending agency level administrative units, to avoid the core departments and spending agencies of information between the serious asymmetry.

(C accrual reform should be gradual change
China needs to adopt a progressive model of accrual reform ideas is no doubt that the reform itself, the complexity and difficulty of the First, the reform of China's accrual in the current cash basis of accounting should be consolidated under the premise that many country is based on the cash basis of accounting, budgeting and reporting more complete accrual under the premise of the reform. Second, the first modified accrual, then is the full accrual basis. modified accrual system can identify and record some of the major classes of assets and liabilities of the government to amend the implementation of the accrual period of time, then full visual conditions are ripe to introduce accrual basis. Finally, in the reform implementation should be considered in place, then consider the implementation of the central, first consider the spending agencies, and then consider the government as a whole and so on.


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