A Study On The Status Quo And Countermeasures Of The Accrual Basis In Institutions

Generally speaking, the budgetary planningand accounting of our country are both established on cash basis which conforms to the budgetary revenues and expenditures management requirements. It is a significant tool for budget management in our country. Many governmental departments let the cash basis as the foundation of accounting recognition. Hundreds of years ago, the accrual basis system had been used in the accounting area. With the development of market economy, our society and public ask to make a change. Rapid growing of market pushes government financial reforming. Diversified accounting entities and management methods come out, as the multi-channels funds emerging. In nowadays, the cash basis cannot to be used to handle all the relevant cases independently. Its limitations become more obviously day by day. Cash basis accounting cannot disclosure all the informations completely and thoroughly. At the same time, it is known to all that the accounting system based on the cash basis would be reformed by our government. So it can be assured that the accounting recognition of public institutions will be reformed gradually in our country.According to the public accountability theory, new public management theory and the definition of public institution accounting. This paper mainly studies on the basis of accounting recognition. Cash basis and accrual basis are comparatively analysed. Besides theoretic analysis, the status quoof public institutions’accounting affairs and some specific problems are mentioned in this paper. From the logistics center, its accrual basis accounting in the routine work is examed and analysed. The result shows that accrual basis is the accounting’s inherent demand as well as the trend of social development.