《Enterprise Accounting System》Implementation Manual

Author: Wen Tao
Publisher:
Publish Date: 2001-03-01
Features: Enterprise Accounting System Implementation Manual Enterprise Accounting System Implementation Manual Enterprise Accounting System Implementation Manual
The "Enterprise Accounting System" is a significant measure in the reform and development of accounting and a major milestone in the substantial reform of accounting standards, following the "Accounting System for Listed Companies" and ten specific accounting standards. It has transformed the previous accounting system, which was merely a simple record and reflection, into a comprehensive regulation covering the entire process of the identification, measurement, recording, and reporting of accounting elements. This change has brought the identification and measurement of accounting elements back into the realm of accounting standards, aligning with the inevitable trend of accelerating the internationalization of accounting in China as it joined the World Trade Organization.
However, due to the relatively complex realities of Chinese enterprises, especially state-owned enterprises that previously implemented industry-specific financial accounting systems, there was a need for an adaptation period when transitioning to the implementation of the "Enterprise Accounting System." This adaptation process was driven by two main reasons:
First, as the internationalization of accounting accelerated, certain standards in the accounting system required reliance on experience and professional judgment. For example, the four conditions for revenue recognition must be met, and in practice, professional judgment is needed to determine them. This regulation differs significantly from the previous strict adherence to state-mandated financial accounting systems, requiring an adjustment period for enterprise accounting personnel.
Second, state-owned enterprises, due to the previously implemented industry-specific financial accounting systems, faced issues such as unreasonable regulations and non-compliance during actual implementation to maintain profits, leading to substantial amounts of bad assets. These bad assets required a process of cleanup.
Considering that listed companies had recently adopted a series of updated accounting standards, particularly the policy of "provisioning for four items" implemented in 1999, they had already mastered and began to apply professional judgment. Over the past few years, both company accountants and certified public accountants had gradually adapted to the waves of reform.
Therefore, the "Enterprise Accounting System" was implemented first within the scope of listed companies and was gradually extended to all enterprises. In line with the requirements of the Ministry of Finance, all enterprises are now required to thoroughly study the "Enterprise Accounting System" to accelerate alignment with international accounting standards and prepare for the challenges of joining the World Trade Organization.
To assist in learning, understanding, and mastering the reformed enterprise accounting system, we have organized leaders, experts, and scholars from the Ministry of Finance, Renmin University of China, and other institutions to compile the "Enterprise Accounting System Implementation Manual."