Research On Accounting System Reform In Colleges And Universities

From the1980s till now, China incessantly reformed the higher education system. The government continually adjusted the education system of colleges and universities to adapt to the need of current development of social economy and of the colleges and universities. Now, the higher educational business has got great achievements. However, after entering the21st century, the macroeconomic environment of China has changed dramatically, especially when China became a member of WTO, colleges and universities faced growing competitions and risks, and the idea of internationalization grasped public’s attention. The current Accounting System of Colleges and Universities in China was promulgated in1998, which is becoming more and more inadaptable to the development of higher educational business, because the internal and external environments of colleges and universities have been changed greatly after more than a decade.At present, there exist some defects in accounting system of colleges and universities in China, which restrict their further expansion and participation in international competition, as well as the overall operation of our country’s political and economic environment. As the rise of colleges’and universities’infrastructure projects, funds collection through multiple ways increased contacts between external entities and schools, thus, the diversified subjects need to know about the financial information of colleges and universities, and the content of reports need further improvement, the accounting basis needs to change from cash basis to accrual basis, accounting items urgently need adjustment, and report system requires to be disclosed publicly, therefore, it is extremely urgent to reform the accounting system of colleges and universities. Now, it is necessary to reform our accounting system of colleges and universities, which is of certain practical significance and value in promoting Chinese higher educational business as well as improving the social economic environment.Through analyzing the research significance and motivation, historical background, and development process of accounting system of our colleges and universities, this paper elaborates the current situation of accounting systems of colleges and universities at home and abroad, discusses the existing disadvantages by contrasting accounting systems between Chinese higher education and enterprises, as well as between colleges and universities of China and America. This paper also compares the first draft (2009) of Accounting System of Colleges and Universities (Opinion Soliciting Draft) with the original system, the second draft (2010) with the first one. By analyzing the reform of accounting basis, variation of accounting items, and improvement of report system, etc., combined with the growing trend of higher education in21st century, the author proposes personal ideas about reform of accounting system in colleges and universities of China.This paper has certain research significance:(1) to strengthen the government’s macro-control and establish more scientific and standardized financial accounting information of colleges and universities;(2) to guarantee that the colleges and universities are adaptable to international competitions, and our accounting system can gradually connect with the world;(3) to change accounting system and adjust accounting items, so as to enable accounting of colleges and universities more adaptable to the environmental change of social economy;(4) to publicly disclose financial reports and enhance practicability of reports, authentically reflects financial situations of colleges and universities.This paper is divided into five parts:Part one:introduction. It mainly elaborates the research background and significance of this paper, explains the cause of selecting this topic from the variation of internal and external economic activities of colleges and universities, introduces research methods and points out the innovations and defects.Part two:research situations at home and abroad. It respectively introduces the accounting system’s development and contents of colleges and universities at home and abroad in detail.Part three:it analyzes and summarizes the operation status and existing disadvantages of China’s Accounting System of Colleges and Universities, compares our accounting system of colleges and universities with that of Chinese enterprises and American colleges and universities respectively, concludes four kinds of disadvantages existing in our colleges and universities as well as explains their influences.Part four:it contrasts the first draft with second draft of Accounting System of Colleges and Universities (Opinion Soliciting Draft), the first draft with the original system respectively; moreover, it analyzes problems that the Opinion Soliciting Draft has solved compared to the original system as well as the existing problems from the change of accounting system, adjustment of accounting items and compilation of accounting report system, etc.Part five:it is about the main purpose of research, aiming to put forwards personal ideals about reform of accounting system in colleges and universities of China. The ideas are come from aspects of suggestions on unifying accounting system, mortifying accounting items, improving accounting reports and educational cost accounting.The main research methods of this paper are chart analysis, comparative analysis and corresponding cases chosen. Innovations lie in employing comparative analysis, case analysis and chart analysis. From the Accounting System of Colleges and Universities (Opinion Soliciting Draft) promulgated by Treasury Department in August2009and September2010respectively, through presenting on chart, it compares five kinds of accounting elements of Opinion Soliciting Draft’s first draft with the original system, the second draft with the first one, clearly presenting the changing process of accounting items and reports design in accounting system reform of colleges and universities, furthermore, combined with the Opinion Soliciting Draft, this paper summarizes defects still existed and proposes personal suggestions.