Innovative Research Of Non-profit Organization’s Financial Reporting System

After the Wenchuan earthquake, the Chinese non-profit organizations and government,market together for the social service as the three pillars, which play a more and more importantrole in the construction of a harmonious society. However, GuoMeiMei events as ammunition ina series of non-profit organizations corruption allegations exposure, causing the public trustcrisis, the donation has seriously affected the development of non-profit organization. In view ofthe social attention on NPO and the new question about accounting system in the implementationof the appear in the new situation, the government has issued a series of policies to improve andperfect the accounting information disclosure, further strengthen its accounting informationtransparency. As a carrier of information disclosure of the financial report, also caused widescholars of research interests, how to construct a non-profit organization financial reportingsystem, in order to strengthen the information disclosure, enhance the credibility of thenon-profit organization, become the new topic of non-profit organization research in the field.Based on this background, the aim of this paper is to research NPO financial reportingsystem, with the usage of normative research primarily, comparative analysis, case analysis, adiagram to illustrate the method of subsidiary. The first part, research on literature review aboutthe question of non-profit organizations information disclosed and financial report in the currentsituation; The second part, the analysis about the defects of the financial report of non-profitorganization. There are three deficiencies, information distortion, lack of detail disclosure, lackof performance evaluation information disclosure, there are two reasons, one is that non-profitorganization current financial report design is not perfect, the other is the execution of theenvironment factors, including legitimacy environment, self-discipline environment and publicsupervision environment; The third part, designation the NPO financial reporting system. Willresources dependence theory, property rights public view, the principal-agent theory as thesupport theory, combined with the non-profit organization’s characteristics, the financial report ofnonprofit organizations located in the responsibility view, entrusted with the responsibility fortermination and meet the information demand of stakeholders, financial report shall providebudget, performance, and detail information. The paper constructs a non-profit organizationmulti-level integrated financial reporting system, which divided into the organization for theaccounting body, set up a balance sheet, business income, schedule, cost schedule, budget andfinal accounts list table and performance evaluation report; adding project activities income expense table, activity effect assessment form first as project activities for reporting entity,showing the information about organization financial situation, use of funds and activity effect tothe public. The fourth part, put forward the policy suggestions about information disclosure ofNPO financial report. Set up information collection and providing mechanism and perfect thefinancial report system, and perfecting internal control system to ensure the organization reporteffective execution; The final part of this paper, case application. as qinghai education aid forexample, the organization for the accounting information disclosure and subjects to Buddha forspecial report on schedule disclosure subject, this design financial report shall be applied.Based on the agent responsibility view, the essay increases the budget informationdisclosure of the nonprofit organization, business activities, and the information disclosure of theperformance evaluation report designed with the balanced score card, basing on the organizationfor the accounting body, big projects for reporting entity, which provide to the society and theuser with a multi-level integrated financial report. The report bases on double subject reportmodes to provide different degree organizational information about the entrusted responsibilityto different users. There is the innovation point in this paper for the designation of financialreport on the content and format. The report has theoretical significance and practical value, soas to improve the financial transparency for non-profit organization facilities machine, internalguidance non-profit organization transparent, financial operations of foreign rebuild public trust,and promote the development of Chinese non-profit organization better.