Practical Analysis On Consolidated Financial Statements Of Universities In China

Along with the reform to system and adjusting to structure in our country's highereducation, several accounting entities have come into being in large scale universities.Universities generally practice the system of "unifying a leadership, rating management".Under this system are there several financial statements such as university's financialstatement, logistic financial statement, university-owned enterprise's financial statementand financial statement on capital construction. Every financial statement only reports apart of university's economy activities. There is no one that reports financial position andresults of operations for university as a whole. At present, the scale of revenue andexpenditure of each accounting entity is becoming increasingly bigger, and the amount ofmoneyfortheirdealsisalsobecominglargerandlarger.Howcanfinancialstatementreportfinancial position for university genuinely and completely? In this paper, the author thinkthatitcanbesolvedbyconsolidated financialstatementofcollegesanduniversities.This paper introduces general theories and establishing methods of consolidatedfinancial statements. According to the theories, this paper discusses the character, serviceobjects and consolidated scope on consolidated financial statements of universities in lightof Chinese actual circumstance. The author assumes the consolidated financial statementsof Chinese universities should service for the investors of universities, includinggovernment departments, the creditors and the universities managers. The consolidatedrange consists of each district of university, capital construction, logistic group, anduniversity-owned enterprises. This paper explicates the preparative things and establishingmethods of consolidated financial statement and explores the consolidated treatment ofinteriorcreditor'srights anddebts,interiorinvestments,salaryrefund,interiorpurchaseandsale materials, interior appropriation, interior cooperation of scientific research, etc. Thispaper explains further the practical methods of consolidated financial statements through acaseof consolidated financial statementsofABC University.Inthe endthe paperprospectsfor the reform of accounting system of universities in order to well consolidate financialstatementsofuniversities.