Application Research On Accrual Basis Of Colleges Accounting In China

Since2000, there is a huge development in colleges of china. As a result, the numberand class of colleges have a continuous increase, meanwhile, activities and business issuesthat are involved by colleges are increasingly complex due to the number of students and thefinancial scale are also continued to expand. With the deep development of the marketeconomy, the reform of public finance system and the improvement of the college systems,there have a higher standard for colleges accounting system and internal managementbecause of the internal and external changes of colleges. The original accounting system ofcolleges has been unable to meet the needs of current normal accounting works of colleges inmany aspects. This requires innovation in accounting system of colleges, especially for thebasis of colleges accounting confirmation.In December of2013, College Accounting System has been officially published bythe ministry of finance of china. This new system was been implemented by colleges since1st January of2014. The one of main characteristics of the new system is bringing the accrualbasis in the part of the economic activities or events of colleges. Based on the new accountingsystem of college, this paper finishes the following main features. Firstly, it analysis thespecific usage of accrual basis of assets, liabilities, revenue and expenditure accounting ofcolleges in China and positive impacts of the information of college accounting through thedifferences between the old and the new systems. On this basis, there is a conclusion that iscolleges should be further expanded the reform of accrual basis. What’s more, this paperproposes the specific measures of the accrual basis of colleges accounting. The measurescontain perfecting accounting liabilities balance, confirming the point of various types ofrevenue, collecting and calculating the cost and improving the financial reporting system, etc.These measures can make the accrual basis of colleges accounting to be more practicality andfeasibility. In the end, this paper analyzes the problems that are been faced while reforming ofthe accrual basis of colleges accounting in China within the colleges financial managementsystem and the current work situation of colleges accounting. At the same time, the paper alsogives some possible recommendations for protecting the change of the accrual basis in colleges accounting through the gradual reform, the legislation protection, and thebudget coordination, the guidance of detailed rules and the supervision and control.