The Research On The Government Accounting Reform Based On Accrual Basis

Accrual basis has been adopted by enterprise accounting for a long time, while cash basis accounting is a kind of tradition in governments accounting in China even all over the world. With the society development and progress, limitation of cash basis accounting has gradually appeared. Since the early1990s, some western developed countries began to introduce the concept of accrual basis in government accounting in order to avoid financial risk and improve the transparency of the government financial information. And this movement had made great achievements. More and more countries began to pay attention to this reform and try to apply it.In the past, in the period of the transition from planned economy to socialist market economic, the used of cash accounting in our country government accounting basically satisfied the need for government departments to strengthen the budget management and adopted to government accounting requirements. But with the reform of economic system continued to deepen, the economic and political environment of our government has gradually complicated. The problems of cash accounting have gradually generated and the limitations of cash accounting have shown up. Proposal is put forward in this article to solve the problem of the existing government accounting by using the accrual basis. And this article also discusses on the issued of the feasibility of using the accrual basis in government accounting and concrete measures of reform are included as well.This article is divided into seven chapters:The first chapter is the introduction part, mainly introduced the research background, research meaning and research scope of this article. The second chapter is literature review. This chapter introduces the research achievements of domestic and foreign relevant issues. The third chapter is the analysis of theoretical basis. This chapter introduces the present situation of government accounting basis of our country, including the change of our government accounting system, the accounting system structure and the problems existing in the current accounting basis. The fourth chapter is about the feasibility analysis of the operation on government accounting by using accrual basis. This chapter includes the comparative of two kinds of accounting basis, and analysis the necessity and feasibility of the use of accrual accounting by government. The fifth chapter is the proposal about the concept of the accrual basis reform in government accounting, including the premise condition of implementation accrual accounting reform, and to build a government accounting system framework and the financial reporting framework. This chapter also repositions the government accounting objectives, and analysis how to improve accounting information quality. The sixth chapter is the concrete measures of government accounting accrual basis reform, including the implementation of cash accounting and accrual accounting in government accounting. Meanwhile this chapter also discusses the issue about the choice of the information generated mode of accrual basis. The seventh chapter is case study. This part takes a public institution for example to illustrate the use of accrual accounting both on accounting entries and accounting statement. The eighth chapter is conclusion. This part is about the effect after accrual accounting reform.