The Study On Value Added Flow In Value Chain Accounting

In the 21st Century, Pursuing a value-added strategy has become the goal of enterprises and value management has become the core of enterprise management. With the development of value chain theory, value chain management model has being formed. It requires accounting management to provide more value-added information for decision-making and forming value reference of value chain management in order to provide a basis for optimizes the value chain. Traditional accounting model has been unable to meet today's changing economic environment so that the national well known accounting expert, professor Yan dawu, proposed value chain accounting and designed its initial theoretical framework.This paper takes the value added flow, the core of value chain accounting management as research object, integrated the value chain accounting theory, the ideas of business process management, designed an accounting treatment process for value added flow through the judgments foundation of the value added flow in value chain accounting and discussed its application in practice.Through the accounting judgments to the value added flow in value chain accounting, this paper has identified and done the value-added analysis for the enterprise's core business processes from a qualitative point of view in order to determine their value-added processes. Then this paper taken the value increasing and circulation as main line, according to three levels by activity, business processes, value chain, formed four stages in accounting process of value added flow in value chain accounting including confirmation, measurement, accounting and reporting so that enterprise managers can use information technology to get the value added information at all levels and analyze it in time and dynamically that can provide direct basis for enterprises to optimize the business value chain. At last, this paper analyzed the limitations in application of Value added flow in Value chain accounting from five areas as following, the traditional organizational structure and management concept, the deficiencies in traditional accounting information system, the single information island formed by departmentalization information platform, the low quality of overall accounting staff, the high-risk with using information technology equipments. According to these limitations, this paper proposed five countermeasures such as, set up a value chain management model and accounting information system, establishing a information platform with the process as core, training complex accounting professionals for the accounting process, building the safety and security system for using information technology equipments that to promote applications of value added flow in value chain accounting in practice.