Study On Improvement Of Accounting Treatment For Expressway BOT Project

Since the 1990 s,China's investment in infrastructure construction has shown a rapid growth trend,and the amount of funds required for public service infrastructure construction is huge,however,the financial funds are far from enough to make up for the infrastructure.Therefore,in order to reduce the financial pressure on the government,make full use of social funds and with the advanced management experience of social enterprises,BOT business came into being.expressway as an important part of public infrastructure,in the construction and operation of the process,the use of BOT way can make full use of resources,achieve better social and economic benefits.But the expressway BOT project appeared some problems on accounting treatment in the development.This paper introduces the theory of BOT project accounting,including public product theory,property right accounting theory and stakeholder theory.The paper analyzes the development of China's expressway and expressway BOT business,which is the main research object of 19 A-share expressway listed companies in China.This paper points out the shortcomings of the expressway BOT project in the early stage of the project,the construction period and the operating period of the project,including the insufficiency of the pre-project construction cost,the improper division of the attribute of the franchise asset,the handling of the borrowing costs is not clear,the construction contract revenue is not clear,the financing income on operation period is clear,the scope of the infrastructure to be transferred is not clear and so on;On the basis of the actual situation and accounting standards,this paper put up some improvement suggestions,such as the franchise should apply a single intangible asset model,the cost of land are included in the cost of franchise regardless of the way to obtain the land,intangible assets concessions is carried forward at the completion of the project,according to the principle of substance over form to confirm the scope and time of capitalization of borrowing costs,amortization of franchise rights use the traffic flow method and the impairment allowed to turn back,using the cost plus method to confirm the construction contract revenue,long-term receivables unrealized financing income is included in operating income.Through this paper,it is helpful to standardize the behavior of expressway management enterprises on BOT project accounting,and further improve China's accounting theory system.