Research On The Influence And Countermeasures Of The Financial And Accounting Because Of Reform Of Institution

The paper includes three parts. The preface introduces the research background and significance of the paper, and makes a brief summary at Reform of Institution on the below two aspects, that is the way how to reform of institution and financial management on reform of institution.The first part gives an overall situation on reform of institution. At first, it introduces the history of reform institution, which has gone through four stages, that is more than40years from The Third Plenary Session of the11th Central Committee. And the second, explain the main problem existing in institutions nowadays, that is, regardless of politics, tubes do not divide, investment mechanism is not sound, personnel management system is not strict, the financial system is not perfect and so on. And the third, explain5major problems should be solved in reform institution, that is to change the functions of government, to clear institutions function, to innovate government’s management, to improve the government investment mechanism, to promote social forces participate in the public service actively. Then introduce the reform of institutions should learn the successful experience from the reform of state-owned enterprises, start from strengthening the publicity on institutions and enhance the autonomy on institutions, gradually realize the target on "separation of government, business enterprises separately, tube do separation". Finally, divide the institutions after reform into three categories:institutions with administrative functions will be put directly under the Government Agencies; institutions main engaged in the business activities will be pushed to the market directly for the restructuring of enterprise, institutions with the public nature will become the new institution through a series of reforms.The second part lists the reform of institutions on the impact of the financial activities, reforming of institutions for the newly established three different types of units after the reform have different implications in the financial activities. As the administrative agency financial systems of newly units which restructuring into administrative bodies are similar with the current one, do not repeat here. On the reforming of enterprises, as the implementation of financial management system and accounting systems are different, there is a big change on accounting calculation system and accounting content and other aspects, therefore, the restructuring of this part impacts financial activities greatly. There are four main aspects:The first is the impact of accounting calculation system. These effects are focus on the below aspects, such as basis of accounting change, accounting classification change, accounting measurement aspects change, accounting methods change, financial reporting change. The second is the impact of accounting content. For this part of the contents, the author himself discuss from the below aspects:the impact on revenue management; the impact on expenditure (cost) management; and the impact on asset management. The third is the impact on income distribution system. The fourth is the impact of the internal control system. In restructuring to new institutions, with the institution positioning and functional changes, the original financial management institutions cannot meet the needs of the development of new institutions, therefore, financial management must be changed with the institutional reforms. The author himself expound the influence on the financial management of institutions cause by Financial System Reform as below:impact of the funds management; impact of the payment methods; impact of the budget management; impact of the accounting system; impact of the procurement mode; impact of the Income distribution system; impact of the social security system.The third part presents the way to deal with institutions after restructuring on financial accounting. As reforming of institutions for the newly established three different types of units have different implications in the financial activities, thus financial accounting measures is also inconsistent on these three units. Reforming to be administrative ones change into government departments which providing public services, it has gone beyond the institutions’. Therefore, it uses financial management system of administrative units directly. As there are many similarities in the financial management system on administrative units and institutions, it needs a little changes on financial management system, and just pays attention it will no longer have the operating income. Reforming to be enterprise ones becoming newly state-owned enterprises, which has gone beyond the institution’s, and no longer take the country’s fiscal appropriation. To be an enterprise, it will fully implement enterprise financial accounting system, and at the same time, enterprises will face great social transformation.In order to survive and develop, it must innovate on concept, system, technology, management and other aspects. Consequently the financial management of the newly units should be carried out on the below aspects.①Change financial staff ideas and concepts to improve their service quality.②Establish a perfect accounting management system.③Strengthen internal control mechanisms, including the accounting system。④Establish new distribution system. For the new institutions which retain the manning quota, to strengthen the marketization becomes an inexorable trend on financial management innovation, and institutions’financial management must also be reformed to adapt to the requirements of public institutions structural restructure. To meet these needs, we should do as follows:①Continue deepen the institutions’financial management reform to increase their " marketization " status.②Further improve the institutions’financial management system.③Increase clarity of Institutions’ financial information to enhance the external supervise on financial decisions.④rengthen institutions financial staff’s financial management awareness, and improve their basic quality.⑤Use management accounting methods in the daily accounting.Finally, make a brief summarize on problems in financial management of the reform of institutions and the research area in future financial management of institutions.This paper researches how the reforming institutions impact the financial and accounting from a financial point of view, and researches after reforming how to adaptable the new administration, enterprise, and financial control system as well as accounting system. And then take the financial management system to boost the reforming of institutions in progress. On the one hand, it’s my pygmy effort on reforming of institutions for our country, on the other hand, provide some reference on the construction of the financial accounting system after reforming for our institute.