Study On The Government Accrual Accounting

Since the debt crisis in Europe in2009, the world economy has been badly affected, countries questioned the transparency of government financial information, how to improve the transparency of financial information, effective supervision of the implementation of the Government’s fiduciary duty to become a hot research of scholars from various countries. In the1970s, Western countries in order to get rid of the government’s financial difficulties, and improve the transparency of government efficiency and financial information set off a "New Public Management"."New Public Management" theory requires the Government to reflect a more transparent budget and other financial information, to promote the introduction of accrual to meet the various demands. OECD was the first organization to practice the new public management theory, at present,21countries of the OECD countries have introduced accrual, Accrual is more applicable to the concept of modern government management has been firmly established.After30years of reform and opening up, China’s economic aggregate ranked the second in the world, at the same time, the government’s fiscal revenues have gone up, the number of government control of public assets is increasingly expanding. With the growth in financial revenue, community is increasingly concerned about the status of the Government’s use of funding, the new requirement of the ability of the Government Financial Management is raised. China now adopts a budget accounting system, there is no internationally recognized government accounting system, based budget on a cash basis accounting system has many drawbacks. All indications, China now adopts a budget accounting system in some ways no longer fit in the status quo of the Government Financial Management. The transformations of functions of the government and the financial system as well as to fulfill the fiduciary responsibility requirements have been to urge the change of government financial management system.The paper is divided into five parts, the first chapter describes the research background and significance, and then the domestic and international research literatures are reviewed. The second chapter, the basic concepts of government accounting, the basis of accounting, definitions, and goals were discussed, and compare the cash basis and accrual, also summed up the government accounting based on the use of the OECD member countries, show that, the Government Accounting accrual is already an irreversible trend in the world. The third chapter discusses the status of budgetary accounting system and problems. Chapter four subsequents three typical government accounting reforms:a step-by-step expansion mode, the mode of distribution in place in Italy, New Zealand step mode were discussed, Summarize the countries reform experience as well as the revelation of our government accounting reform. Chapter five gives some suggestions on China’s Accrual-based government accounting system.