Government Accounting Environment and Government Accounting Reform Models

Author: Wang Chenming
Publisher:
Publish Date: 2006-12-25
Features: Since the late 1970s, with the increasing complexity of economic life, governments around the world have faced pressures from government expenditures, the burden of government debt, and government risks. They have sought to strengthen government financial management, enhance its control functions, improve the transparency of government financial information, and accurately assess the future sustainability of government operations. To boost their national economic competitiveness and establish clean and efficient governments, countries such as the United Kingdom, the United States, New Zealand, and Australia have launched the "New Public Management" movement, pursuing efficiency, effectiveness, and economy in government management. They proposed the "Re-engineering Government" strategy. These countries introduced business management concepts into public administration, emphasizing supervision of government fiduciary responsibilities, transparency of budget information, and the openness of the rule of law. In accounting, correspondingly, countries have gradually shifted from their original single cash-basis accounting model to adopting the accrual basis in government accounting systems. This aims to better report the overall financial status and fund operations of governments, reflect the efficiency and quality of public services provided, with the core requirement being that governments provide the public with truthful and high-quality budget, asset, liability, and other financial information.