Study On The Accrual Accounting In Administrative Department Named S

For a long time, the accounting bases of the government public sectors are differentfrom ones of enterprises. Hundreds of years ago, enterprises started to use the accrualbasis of accounting, however, government accounting had been using cash basis. Asall sectors of the community are keeping eyes on efficiency of fiscal fund, integrityand transparency of government information, however, cash basis has manydisadvantages and it’s hard to satisfy the demand for the public. So it’s necessary toreform the cash basis and move forward accrual basis in order to adjust the change ofgovernment accounting goal.Firstly, on the basis of defining Chinese government accounting in China, I makethe comparison of accrual basis and cash basis, and study the theory and the necessityof applying accrual basis, such as management of fiscal risks, measurement ofadministrative cost and evaluation of cash efficiency.Secondly, with the status and the trend of accounting, the paper will focus on aspecific government department named S, by reflecting its daily accounting activitiesand its journal entries to analysis the problems of existing accounting system, forexample, the problems of measuring assets and liabilities. The best solution is to addor apply the accrual basis as a substitute of cash basis.Lastly, try to apply the accrual basis in the administrative department. At the sametime, discuss about the difficulties of using accrual basis in China, the measures andthe guarantees.