Researches On The Basis Of Recognition And Measurement Of Chinese Government Accounting

Since the 1980s, the new public management movement has led to governmental reforms of accrual-basis accounting in different areas, to different levels around the world, especially in member countries of OECD. Reforms have achieved remarkable results, greatly promoting the development of national economies. In the early 20th century, the outbreak of the U.S. Financial crisis and European sovereign debt crisis once again made the world aware of the importance of disclosing governmental accounting information on the basis of accrual accounting. In recent years, with China's fiscal and financial reforms gradually deepening and citizens of the democratic consciousness enhancement, the public have a higher demand of the integrity and transparency of government accounting information. So the government department began to disclose the government accounting information by publicizing budgets in network.Accounting system on the cash basis can not provide the accounting information that the users need.Due to the contradiction between the current government accounting system and the information needed and profound changes in domestic and overseas environment, our governments have speeded up the application process of accrual-basis accounting, and implemented policies and measures to promote reforms of government accrual accounting successively.Research on specific application of accrual basis accounting on accounting elements affirmation and measurement is not only of theoretical value but also of practical significance.Generally speaking, there are two government accounting basis: cash basis and accrual basis. Certain amendments will be made in the specific application. The main difference between cash-basis accounting and accrual-basis accounting is that the governmental accounting information on the accrual-basis is more conducive to the evaluation of government performance and the fulfillment of their fiduciary responsibilities. Foreign governments select different accounting systems according to their situations, and their reforms provide valuable experience for China's application of government accrual- basis accounting.Through the comparison of two accounting basis,we can conclude that the accrual basis is the realistic choice of Chinese government accounting. Cash basis has been adopting in Chinese government accounting. However, Chinese government accounting began to attempt to apply the accrual basis from the end of the 20th century. Therefore,the basis of the transformation of government accounting will encounter many problems,especially the recognition and measurement of government accounting elements.Accounting system should be unified and standardized. In accordance with the requirements of accrual basis, re-demarcate and define assets, liabilities, income, expense and balance.We must re-recognition and re-measurement the important projects in government assets, liabilities, income and cost. Focusing on the items such as state-owned equity, fixed assets, payable interest contingent liability and so on, which are not reflected or reflected incompletely on the cash basis. In order to better promote the accrual basis reform, we have to consummate the supporting measures of reform in the legislation, the establishment of standard system, the fixed assets inventory, financial reporting, information system development, training system construction and other aspects.