Liabilities Of Government Accounting Research

Essentially speaking, increasingly fierce of the European debt crisis indicates thatgovernment debt is out of control. The sovereign debt crisis in Europe not only affectsthe economy growth of Euro districts but also increases the unsteady factors of globaleconomy revival. It also gives people a new impression of sovereign debt crisis: thebiggest threat that leads to the crisis shifts from government's direct debt to contingentliability．In the current budget accounting system, government's contingent liability isout of sight of the accounting in our country. The government accounting systemignores contingent liabilities which lead to its expanding scale and increase of potentialdebt crisis.In view of this paper, based on unique perspectives of the value approach andevent approach, I try to construct the contingent liability accounting system of thegovernment. In this paper, I try to bring the contingent liability that is up to standardinto government debt accounting scope, and at the same time, make a detailed liabilityanticipating list. Based on the value of the method the main part of the contingentliability accounting system of the government is constructed; considering subjectiveevaluation, uncertainty properties of liabilities, Event Approach Accounting isintroduced into the system. By this kind of approach, necessary supplement of thecontingent liability accounting system of the government is constructed. Throughorganically combination of the two methods, the system can provide valuableinformation and diversified economic item information to information users. In thisway, the transparency of fiscal system is promoted, which is a kind of helpfulexploration of how to guard against financial risks.This paper analyzes the domestic and foreign research status of government'scontingent liability in the first chapter, in which also explains my thoughts and theinnovation points; In Chapter Two, I describe the related theory of government'scontingent liability in order to lay theoretical foundation for the following chapters; InChapter Three, I conclude some useful experience of government's contingent liabilityaccounting reform as well as disclosure of aspects of the reform of governmentaccounting system in the frontier of four countries worldwide. Through that, ourgovernment have some kind of new methods of government's contingent liability; TheFourth Chapter expounds government's contingent liability in China from the central and local levels, and analyzes the existing form, reason and carrier of government'scontingent liability, which lay the foundation of the construction of the government'scontingent liability system in the Fifth Chapter; Based on the unique insight of thecombination of value method and Event Approach Accounting, the contingent liabilityaccounting system of the government is constructed in the Fifth Chapter. The authorthinks that the introduction of Event Approach Accounting doesn't mean to reject thevalue method. They should be organically combined. In a very long time, the dominantposition of value method will remain, but Event Approach Accounting as a necessarysupplement will provide the more original and dimensional information to users. Thiskind of guidance will increase step by step in the future..