BankLoan Risk Evaluation System Of University Implementing Accrual Accounting Principle

For the'technology and education' strategy to develop higher education, China implemented a proactive policy of higher education enrollment since 1999. Higher education gradually entered a phase of mass. Large-scale enrollment expansion policy on the one hand promoted the development of higher education, on the other hand, has brought a series of difficulties for colleges and universities. Contradictions appeared, and focus on the shortage of fund for development and construction of the school. Financial allocations from the state and tuition income barely enough to maintain the university's daily operations. The self-financing capacity of schools are also very limited. Most universities completed the enrollment expansion task only by bank loans, to achieve the school's development.Overall, the use of effective college loans better solved funding shortage problem during the expansion of university. However, there are generally heavier debt burden of college, has affected the harmonious and stable and healthy development.To further guard against financial risks, to effectively control the scale of university debt. Ministry of Education and Ministry of Finance jointly organized and developed'banking facilities and the risk evaluation model of colleges and universities' in 2004. Require colleges and universities consult the model methods and ideas, and study to determine the bank loan model suitable for themselves in order to master and understand their own financial risk profile whenever necessary. This model is based on the universities implementing'cash basis' accounting system, and can't reflect the real data to evaluate financial risk target objectively.To this end, this article attempts to'accrual' method to modify the model of the target, and thus establish a sound early finance warning system for college, a more scientific and objective evaluation of university's financial risk.