On The Use Of The Accrual Accounting Of Our Government

There are two confirmation bases: cash basis and accrual basis. In the field of business accounting, accrual has been used for several hundred years; but in the field of government accounting, cash basis is used. On the surface, the accounting reform is not just a technical issue, but a perfect and transparent accounting is the base of management of a good government and public sectors. In the world economic system, the government is a "enterprise', which takes market as foundation and produce as guide. If we take government as an enterprise, the introduction of the accrual basis will be the key of "account management", which is the core of government accountability. At the end of 1980s, New Zealand first introduced accrual basis into government accounting system to improve the efficiency of the public sector and the performance of government accountability. The other countries also start to use accrual basis. By far, in 29 OECD members, at least 11 countries use accrual basis and have obtained good result. Under this background and on the basis of our country's situation, this article tries to do some research on accrual basis, so as to improve China government accounting reform.The article is divided into five parts altogether.The first part is about the background of accrual reform. This part analyzes the history reasons of accrual reform and introduces the condition of accrual reform in other countries and international organizations' improvement.The second part is about the necessity of accrual reform. This part analyses the cause of the existence of cash basis and its limitations, then puts forward the necessity and theory bases of accrual reform.The third part is about the experiences of other countries. In this part, I introduce the experiences of New Zealand, Australia and England. The fourth part is about the plan of China accrual reform. On the basis of our country's situation, this part puts forward the total plan and particular measures of accrual reform.The fifth part is about the oppositions of accrual reform. This part introduces some opponent viewpoints and discusses about them.