Study On Government Subsidize On Hi-tech Industries And Accounting Issues

From last 1990s, High and New Technology Enterprises (HNTEs) in China have come through for about 20 years,this knowledge-orientated research&development industry have played an important role in our national economy,the research of knowledge and technological progress in high-tech industries are important driving forces of China’s economic growth and the transformation from"investment-driven"to "technology-driven"mode.AS the most concentrated and active areas in technologhical innovation activities of China’s enterprises,it plays an important role in the change of our country’s industrial structure and achieve the strategic objective of being an innovative country.For that reason,China’s government have issued a series of oreferential tax policies to encourage and subsidize the high-tech enterprises,however,it remains to be seen whether these measures could be effective,so this issue still needs to be dissussed,it also have an make a great significance for policy making department to make plans of public policy.In China, the local government subsidizes listed corperations is a common phenomenon. Gveronment subsidies have different forms, so it has become an important tool to intervene economy of local government,this behavior make a big difference on the capital market.It is a pity that China’s studing on government subsidizes has justed started in recent years,and its main studing objects are companies which loss-making or ST, yet it did not reach the a common agreement until now.Because of China government has made effective adjustments to the economies macro conteols,,High and New Technology Enterprises has close relationship with the government and own the adcantages,high technology enterprises have got a serious of preferential items. So the research of government subsidize for high-tech industries will make sense to the planning of the national high-tech industrial development policy and the promotion of the high-tech industrialization by local government.The purpose of this thesis is to observe local government subsidies and evaluate its implementation,as the example of an hi-tch enterprise in LuoYang,from the points of political connections, industry characteristics firm size,try to make a research on local government subsidies influence factors and whether the implementation are lagging or not,from the economic and social perspective,this thesis will also disscuss the way which hi-tch enterprises record the government subsidies in accounting.Innovation of this papenThis article targets at HNTE (high and new technology enterprises) to make a research on government subsidies’s economic and social effect, Quoting the relationship to study the government subsidies category, enterprise features, industry characteristics.The effect of government subsidies include both economic effects and social effects.