A Number Of Issues Of Statutory Public Welfare Fund Research

In 1993, the accounting system of China changed a lot. The Enterprise Accounting Principles and 13 Industry Accounting Systems were implemented as the main contents of the reform, which achieved the transition of our accounting system from the planned economy to the market economy. In this transformation process, the statutory public welfare fund was established as a transitional arrangement, and it was drawn as a certain percentage from the net profits. The usage of the statutory public welfare fund is the staffs' collective welfare.The Article 83 of the Enterprise accounting system states that the statutory public welfare fund refers to the provisions drawn from the net profit for the staffs'collective welfare facilities. When the statutory public welfare fund uses for staffs'collective welfare, it should be transferred into the other surplus reserve. Meanwhile, the original Company Ordinance states that when the company distributes the after-tax profits, it should draw from the profits by 5% to 10% to the statutory public welfare fund. And the ordinance also explains the statutory public welfare fund should be used for the staffs'collective welfare. These two important regulations make each enterprise brings the statutory public welfare fund into their accounting system for several years.Along with the reform of the housing system and the reform of the enterprises running social functions, the statutory public welfare fund 's original statutory purpose– use for the staffs'collective welfare facilities has lost real meaning, thereby it causes a lot of statutory public welfare fund becomes as a form without substance. In connection with this situation, in October 17, 2005, the amendments of the Company Ordinance deleted the original stipulation of the statutory public welfare fund.The main contents of this thesis are the history of the statutory...