On The Accounting System For Capital Operation

Capital operation is doomed to appear as economy develops in human society. On China's transition from planned-economy to market-economy, it inevitably emerges as the times require. As we know economy has evolved from product operation (processing), commodity operation (transaction) to capital operation (management) in history. Compared with commodity operation, capital management differs in many respects. The traditional system of accounting theories and techniques, however, are primarily applicable to commodity operation, therefore the traditional one will be completely challenged and may be restructured to be adaptable to capital operation. In a word, it's time for the researchers on accounting to establish a brand-new system of accounting theories and techniques for capital operation. In order to meet the requirement, the author of this dissertation, based on considerable resources of material including both theories and practices, relying on the studying process from concretization to abstraction and then back to concretization, has done a broad and systematic research into the accounting system for capital operation. The whole article covers five chapters: the Conspectus of Capital Operation, Basic Accounting of Capital Operation, Accounting Control of Capital Operation, Accounting Policy of Capital Operation and the Accounting Patterns of Typical Capital Operation. Actually the five chapters focus mainly on two aspects: theories and practices. The Basic Accounting of Capital Operation and Accounting Control of Capital Operation are the two fundamental functions of accounting for capital operation. They concentrate on theories. Accounting Policy as well as the Typical Accounting Patterns of Capital Operation, on the other hand, belongs to practical aspect. Due to their dialectic relationship, the two aspects supplement each other: the basic theories derive from the practices and will serve to guide the practices later. The followings are the summaries of the five Chapters. 1. The Conspectus of Capital Operation. It is still argued on the logistic jumping-off point of Accounting Research. There is no consensus on the theory of Accounting Object. However, the author agrees on the Accounting Object. The different accounting objects determine different accounting theories. The accounting research on a given aspect, she believes, should be oriented to a typical object. In market economy, the accounting object falls on assets movement, that is, capital operation. So it's essential for the author to shed light on the whole process of capital operation so as to go further to study at the accounting system for capital operation. In view of this, in the very beginning, the author expounds the basic concepts and the actual processes of capital operation, the market conditions and institutions it requires. 2. Basic Accounting Techniques of Capital OperationBasic accounting is one of the fundamental and initial functions of Accounting. The author starts with investigating the traditional accounting system in China. Thetraditional system in China has been established and gradually completed under the conditions of commodity transactions. It is unable to meet the needs of capital operation. As China marches to market economy, the traditional accounting system will be challenged and even will be shaken by such activities of capital operation as accounting presupposition, accounting measurement, accounting recognition, accounting disposal and accounting report. There is the law that things undergo changes over time in two forms: quantitatively and qualitatively. When people firstly implemented capital operation, the accounting pattern underwent changes only in one or two aspects, and they were quantitatively measured changes. As long as capital operation is widely put in practice, the basic accounting pattern will change qualitatively. As a result, the pattern will be adaptable to combined conditions under which commodity operation and capital operation coexist. Yet, the changes take time. The n...