Xingyuan Environmental PPP Accounting Information Disclosure Case Study

The participation of corporate social capitalists in public infrastructure adopts the PPP model,which has been widely promoted and applied nationwide in recent years.Private capital parties participate in the construction and operation of PPP projects,promote China’s infrastructure construction,and make great contributions to economic and social development;the PPP model also brings great development opportunities to participating social capital enterprises.Xingyuan Environment is a private enterprises in the environmental protection industry,and the construction and operation of government environmental protection projects is the main source of operating income.For the key issues in the processing of government projects,accounting standards and regulations have been changing and improving.Continued compliance with rules and regulations is important for all businesses that are deeply involved in government PPP projects.This article takes the release of Accounting Standard Interpretation No.14 as the background,studies the current situation of the accounting information and disclosure of PPP projects in Xingyuan Environment before and after “No.14”,the accounting information and disclosure countermeasures for future PPP projects,and fully interprets the surplus management to prevent misunderstanding by stakeholders.Firstly,the literature on risk sharing,surplus management motivations and means,accounting policy choices and changes in accounting estimates,and revenue recognition of PPP projects is reviewed.Then,the changes in the disclosure regulations and systems of PPP projects at home and abroad are systematically sorted out,and the asymmetric information theory,signal transmission theory,and interest-related theory are used as the guides to improve the quality and disclosure level of enterprise accounting information.Then,the changes in the disclousure regulations and systems of PPP projects at home and abroad are systematically sorted out,and the asymmetric information theory,signal transmission theory,and interest-related theory are used as the guides to improve the quality and disclosure level of enterprise accounting information.Secondly,combined with the history of enterprise development and the current situation of its information disclosure evaluation as “C”.Reviewing the regulatory inquiry letters and replies received by the Shenzhen Stock Exchange on the fourth occasion,Xingyuan Enviroment found that it had many problems such as improperly calculating huge goodwill impairments by using the policy to tighten the environment,the difficulty of asset presentation caused by the lack of understanding of the standards,and the unreasonable recognition of revenue from the construction of PPP-related projects.Third,based on the “No.14” new system to help Xingyuan environment be misunderstood by stakeholders and prevent the company’s unique risks,on the basis of proposing the Xingyuan environmental information disclosure rating to align with “A”,with the common means of surplus management as the staring point,it is interpreted that under the new standard,PPP project assets should strengthen projects,carefully select accounting policies,optimize mixed models,and cooperate with financing methods for the treatment of borrowing costs.Finally,it is concluded that enterprises participating in PPP projects should increase their grasp of the relevant standard system,do a good job in the whole life cycle management of PPP projects,and improve the quality of accounting information and disclosure of PPP projects,so as to strive for higher contract benefits of PPP projects.The innovation of this paper is that the accounting information of the PPP project of Xingyuan Environment is inquired as the starting point,and through the interpretation of the risk of violation of the PPP project,and provides assistance to the enterprises participating in the PPP project in terms of accounting information and disclosure.