Research On The Accounting Of Capital Service

Production is a process of input-output. In the process of production, labor and capital are the two most important factors. Just like labor providing, labor flow to the production process, Capital provide capital services to the production process. In the area of productivity calculation and analysis of economic growth, considering the contribution of capital to production, capital service is the most appropriate capital measure. Many related researches use capital stock instead of capital services, which is not appropriate. Accuracy of capital service accounting determines the accuracy analysis of measuring productivity and economic growth.In the field of national accounts, capital service accounting can improve capital stock accounting. There is a close relationship between capital service accounting and capital stock accounting that capital stock is the carrier of capital services and capital services is flow which transferred out from capital stock. Capital stock accounting is the basis of capital service accounting. Introduction of capital service accounting theory can also make capital stock accounting better. On the other hand, the existing system of national accounts can not explain about operating surplus, it is just considered as a remainder of income structure account. Actually, analysis of the source of operating surplus is of great significance for the system of national accounts.In the past50years, research on capital services had already have many results.《Measuring Capital Manual》 and《Measuring Productivity Manual》 by OECD have introduced us about theory and calculation method of capital services. SNA(2008) have also added content of capital services for the first time. But, in china, the study to combine capital services with System of National Accounts. Based on the existing theory, herein we have analyzed the concept of capital services, accounting scope, calculation method and account settings, put forward some suggestions to build China’s capital accounting services, and also calculated value of capital service and volume indices from1978to2012. At the same time, we recalculate net capital stock of China from1978to2012with new method of PIM. Finally, some suggestions were given to solve problems encountered in the calculation.