Research Of Local Government Liability Accounting System Based On The Government Performance Governance

Recent year, The size of local government debts continuous expand with the constantdeepening of the economic system reform and the promoting of a proactive fiscal policy and thereform tax system, and on the top of western nations’ sovereign debt crisis, debt risk attractgovernment attention to some degree. Whether local government liability accounting can providewhole debt information refer to the assessment of local government financial risks, refer toassess the performance of public accountability; refer to government performance governance’simplemented. But at present local government’s debt information can not meet the needs of thepublic, and on the top of performance governance. Driving local government constantly bringforth local government liability accounting reform. In view of this, this paper research on localgovernment liability accounting system based on the government performance governancetheory. then tries to establish a framework which includes accounting recognition, governanceand disclosure to reflect in an overall way the scale and structure.The author mainly uses literature research and inter-disciplinary research. The paper try toestablish local government liability accounting framework based on the special requirement ofperformance governance. Firstly, the paper comb research present situation of local governmentdebts and performance governance. Then the author research rationale of this paper, and the keyproblem of local government debts and performance governance, which supplies a foundationfor constructing the accounting.Based on the above, the paper combines accounting process withperformance governance to carry on a discussion from three aspects, accounting recognition,accounting governance and accounting information disclosure. So at the end of this paper, theauthor establish a framework which could reflect the scale and structure of the local governmentdebts and help performance governance. Finally, the research draws the conclusion and policysuggestion and also analyses the contribution and shortcomings of the thesis.