Research On Accounting Of PPP Project Based On Life Cycle

In order to provide better public services,effectively resolve the debt risk of local governments,and actively cultivate new engines for economic growth,after the Third Plenary Session of the 18th CPC National Congress in 2013,the State Council and its constituent departments and various regions across the country have issued a series of PPP project policies to further encourage the construction and operation of infrastructure which lead by social capital,thus lead to a full blossom of PPP projects.However,although a series of normative documents have been issued,there is no overall systematic guidance for PPP projects accounting except CAS No.2(hereinafter referred to as "interpretation No.2")in which the construction-operation-transfer model of financial accounting has been interpreted in the form of question and answer.The appropriate financial accounting can promote the healthy and orderly development of PPP projects,in the meantime,it is a urgent problem needed to be solved by accounting workers as well.This article intends to proceed from the theoretical overview of the PPP project,then analyzes the differences between the basic accounting assumptions of the PPP project and the traditional accounting hypothesis,tries to interpret the stipulations about the BOT project financial accounting for CAS No.2,and sort out the relevant accounting guidelines for IAS,though the interpretation and contrast between accounting guidelines in CAS and IAS,it can sort out accounting keys for life cycle of the PPP project,and find out that the follow-up measurement of core of PPP project accounting in the form of financial assets and intangible assets in franchise rights,During the period of franchise,the project company will perform the operation and maintenance of specific infrastructure,transfer it to the government after the expiry,and the right to charge fees to the public during the concession period should be recognized as intangible assets,or as an unconditional fixed amount to the government.Rights should be recognized as financial assets,or both.at last,by comparing the accounting cases of Haikou Dayingshan Road Network Project and the Wanning Municipal Wastewater Treatment Project,it can provide reference value for the follow-up accounting practice of the PPP project.The guidelines for accounting of BOT projects are the main research results of the thesis in CAS No.2,which can be applied to the accounting of PPP projects.There is no professional judgement principles and treatment methods for PPP project related accounting guidelines in China's corporate accounting standards.People can draw on relevant provisions of the IAS about the accounting treatment of concession rights.The identification of assets in PPP projects mainly includes financial assets,intangible assets and a mixed mode of the two;subsequent measurements will result in large accounting differences if PPP projects are recognized in different asset recognition models.PPP financing model is relatively new,the Ministry of Finance doesn't have normative guidance for accounting.There is inevitabe inadequacyies in the thesis.