Study On The Accounting Treatment Of PPP Project By Government Subject

As our governments more and more adopt the PPP approach to carry on the financing construction,PPP projects have become an important part of public infrastructure.Its correct recognition and measurement have great influence on the government financial situations,and it is related to whether the government financial information can be truly reflected.Therefore,the quality of government financial reporting is closely related to the accounting treatment of PPP projects.In view of the public infrastructure formed by PPP,at present,both the government and the project company do not take it into account in the balance sheet,which results in the emergence of a large number of "orphan assets",which is not conducive to the management of assets and liabilities by the government.It is not good for the government to truly reflect the financial situation and other information.For the government accounting entity's accounting treatment standards for PPP projects,China has not issued relevant government accounting standards at present.Therefore,from the angle of government,the study on accounting treatment of PPP projects in China can provide some ideas for solving the problem of "orphan assets" that have existed for a long time in our country,and make up for the gaps in the standards of government accounting in this respect.This paper is mainly based on the "Government Accounting Standards-Basic Principles" and "Government Accounting Standards No.5-Guidelines for Public Infrastructure",and draws on the International Public Sector Accounting Standards No.32 " Service concession Arrangements: Grantors"(IPSAS 32).In the relevant content of the report,the accounting treatment of the PPP project in China is analyzed and discussed with the government as the accounting entity.Based on the theory of property accounting,the theory of public fiduciary responsibility and the theory of new public management,this paper probes into the recognition and measurement of PPP projects and puts forward its own viewpoint.Firstly,by analyzing the current situation of the government accounting reform in our country,find that the government can not truly reflect the assets and liabilities,and there are a large number of "orphan assets".Then,it is urgent to solve the problem of PPP accounting treatment.Considering the blank of accounting standard of PPP project in our government accounting standard,this paper discusses the method of accounting treatment of PPP project with government as the main body of accounting by referring to the definition of relevant standard system in foreign countries and the research of domestic scholars.Including the ownership of the main body of the PPP project,the confirmation of what the type of assets,how to carry out the initial and subsequent measurement,and whether the various kinds of expenditure responsibilities undertaken by the government constitute the liabilities of the government,and what should be confirmed as the government's debt is analyzed.Based on the exploration and summary of the previous theories,this paper further clarifies the government's accounting treatment methods for PPP projects through hypothetical case analysis,and provides some ideas for the construction of government accounting standards for PPP projects in China.