Study On Government Accounting Conceptual Framework In China

At present, governments in China adopt budget accounting system. But with thedevelopment and improvement of the socialist market economic system, and with thedeepening of our government function transformation and public finance reform, thecurrent budget accounting no longer meets the demands of economic development andurgent problems emerge. At the same time, there is a reform of government accounting inthe whole world. So it is necessary that China’s governmental accounting also has acomplete reform, which needs the guidance of the governmental accounting conceptualframework. The conceptual framework is not a basic principal, but an important part ofgovernment accounting theory system, which helps to know how to make and how toamend the government accounting standards. Therefore, the study on buildinggovernmental accounting conceptual framework is of great importance to governmentaccounting theory system and guidelines.Firstly, this paper elaborates the basic theoretical knowledge of governmentaccounting conceptual framework, including government accounting, information systemstheory, principal-agent theory and stakeholder theory. Secondly, this paper introducesdevelopment of government accounting conceptual framework in the Western countriesand international organizations. Thirdly, the paper expounds enterprise financialaccounting conceptual framework of China, financial accounting concept framework of theUnited States and Framework for the Preparation and Presentation of Financial Statementsof International Accounting Standards Committee. Finally, based on our governmentaccounting environment and the experience of building enterprise financial accountingconceptual framework and that from Western government, the paper gives advices forbuilding China’s government accounting conceptual framework system.This article has three points of innovation. Firstly, the article establishes a completeconcept framework system of government accounting, including government accountingobjective, the government accounting subject, the government accounting elements, thegovernment accounting quality, the government accounting confirmed basic andgovernment accounting reports; Secondly, the article proposes the government accounting objective, including both the responsibility and useful decision-making, and construct thesix important ingredients of government accounting: assets, liabilities, fund balancesincome, expenditures and balances; Thirdly, the article adopts the summary methods ofexperience relevant. This article establishes government accounting conceptual framework,which is based on our government accounting environment, and learn from both corporatefinancial accounting conceptual frameworks and the advanced experience of westerngovernment accounting.