Accounting Management Of Ministry Of Finance

Accounting management with Chinese characteristics has laid the foundation for reform and opening up.

Construction of laws and regulations from central to local

Thaw from rigid ideology

In 1978, in this year of reform and opening up, the highly centralized planned economic system gradually changed to a planned commodity economic system.

With the recovery of the predecessor of the Ministry of finance, the accounting department, in early 1979, a series of explorative, pioneering and foundational work began.

This has also opened the prelude to the reform of accounting management in China.

At the beginning of the recovery of the accounting department of the Ministry of finance, there were only 7 people in the whole department. At that time, it was known as the "five elders and two youngest", but it was responsible for the management work of millions of Accountants in the country. Liu Yuting, the director of the accounting department of the Ministry of finance, was the youngest among them.

The introduction of the accounting law, the first milestone event after the start of our accounting management work, is the masterpiece of the "five elders and two small".

"State Council 1978

The accounting law establishes the financial department of the State Council to be in charge of the national accounting work, and the financial departments of the local people's governments at all levels manage the local accounting work. Thus, the accounting management system of "unified leadership and hierarchical management" has been established, and the basic framework of the "government led" accounting management in China has been established.

It can be said that the establishment of the accounting law is the most powerful guarantee for the rapid development of accounting management in China.

After the promulgation of the accounting law, Wei Kefa, senior secretary of the accounting department, vigorously promoted the establishment of accounting management institutions in the financial departments of all provinces (autonomous regions and municipalities directly under the central government) and the financial departments of the local (city) and county (District) departments.

Without the guarantee of the accounting law and the efforts of the older generation of accountants, there would be no gratifying situation for the accounting profession without the linkage of the accounting management institutions and teams.

Liu Yuting, who has been doing accounting management for more than 30 years, talked about the beginning of the accounting management in China.

Today, his deepest feeling is that "accounting management should be carried out around the center of financial and economic development. This is a rule and direction. If we follow this rule, we will be right." in the following 20 years, the implementation of the accounting law has become an important task of all levels of accounting management institutions in China.

With the development of economy and entering the first 10 years of twenty-first Century, the accounting reform has been carried out in accordance with the accounting law and the specific circumstances of the province, municipality and autonomous region.

As a result, the introduction of the local accounting laws and regulations, such as the implementation of the accounting law (Draft) and the accounting personnel regulations of Fujian, has become an important sign for China's accounting management to accelerate its entry into the new era in Xiamen.

Now, according to the Xiamen accounting personnel Ordinance, Xiamen intends to set up the first self regulatory Association of local accountants in Xiamen, Accounting Association.

"This is a good news that we have been looking forward to for a long time. We need such an industry association to support accountants to perform their duties according to law, safeguard our legitimate rights and interests, and reflect their opinions and suggestions to the relevant parties."

Wu Haitao, an accountant in Xiamen, told reporters.

The construction of the system is more intense than waves.

Sino foreign joint venture is a new thing that appeared in China in the early 80s of last century, and it also put forward new requirements for accounting system.

In Ma Hongyuan's memory of the old accounting in the late 70s, "at that time, our country was basically a state-run enterprise, and the state-owned enterprise accounting system was revised in 1980. However, because of the single investment entity of the state-owned enterprise, the framework of the accounting system has obviously failed to reflect the actual situation of the value added and the profit distribution according to the investment proportion of the foreign investment."

The foreign side can not understand China's accounting statements, which is a major problem for China to attract foreign capital on the path of reform and opening up.

Against this background, the Ministry of finance began to study the establishment of an accounting system for Sino-foreign joint ventures. After two years of investigation, it first introduced the accounting elements of assets, liabilities, capital, income, cost, profit and loss at that time, and the types of accounting statements also followed the international practice and introduced the balance sheet, profit and loss statement and financial statement.

Foreign businessmen are invited to solicit opinions, while Chinese personnel in joint ventures are trained.

"In March 4, 1985, the Ministry of Finance officially promulgated the first new accounting system in China, which is designed according to international practice," the accounting system for Sino foreign joint ventures ", which was implemented in July 1, 1985.

Ma Hongyuan remembers the two days very clearly, because March 4, 1985 was the first day when he went to work from a Sino foreign joint venture after he resigned from state-owned enterprises.

With the deepening of reform and opening up and the emancipation of our minds, the diversification of investment entities, the separation of ownership and management rights, and the formation of enterprise groups have become the main theme of the late 80s and early 90s, but they are also constantly affecting the traditional accounting system of state-owned enterprises.

This also directly gave birth to the general principles of enterprise finance and the accounting standards for enterprises implemented in various enterprises throughout the country since July 1, 1993.

According to the requirements of enterprise accounting standards, combined with the different characteristics and different management requirements of various industries, the Ministry of finance has formulated 13 national and sub industry accounting systems and related financial systems, namely, "two systems" and "two systems".

After entering the new century, China's accession to the WTO seems to be a news for ordinary people, but for Ma Hongyuan, it is a matter of real importance.

In the second half of 2004, the accounting department of the Ministry of finance made a comprehensive analysis of the situation at that time. When studying and formulating the 2005 work plan, it put forward the proposal to establish the accounting standards system for Chinese enterprises and achieve international convergence.

The Ministry of finance has made decisive decisions and decided to start the system project. At present, mainland China, Hongkong and the international accounting standards board have established a continuous convergence mechanism.

At the end of 2005, an enterprise accounting standard system consisting of a basic norm and 38 specific criteria was formally established. In November 2005, the joint statement of China's guidelines and international financial reporting standards was signed with the international accounting standards board.

In February 15, 2006, China's new enterprise accounting standards system was officially released.

The implementation of this guideline covers almost all state-owned enterprises.

If Ma Hongyuan is described as a witness and practitioner of changes in China's accounting standards, it is not too bad. All of these changes have been experienced by him. Now Ma Hongyuan has become the chief financial officer of a world's 500 largest multinational company.

"My whole accounting career is closely related to the changes of accounting system and norms in our country. It is no exaggeration to say that through these changes, I can see great changes in accounting management in China, and those of us who are accountants are practitioners and beneficiaries."

At the same time, accounting standards are also in line with international convergence, and accounting control is also moving towards comprehensive risk control.

Talent development, Pyramid's training mode is expanded as a whole.

Nowadays, the training strategy of accounting talents in China has already formed a training mode in Pyramid, that is, refining high-end accounting talents on the basis of expanding the number of talents.

From 80s to 90s of last century, the introduction of accreditation system for senior accountants provided a good platform for Accountants in China.

"When I heard that there was a senior accountant accreditation system that year, I started to take part in it. As a result, I experienced 3 rounds of criticism, and the degree of rigour is obvious."

Liu Kai was one of the earlier several qualified accountants. When he became a senior accountant, it was a great thing at that time.

However, with the progress of the appraisal year by year, the drawbacks brought by the single assessment also appeared. In order to solve this drawback, the Ministry of Finance and the Ministry of personnel decided to implement the system of examination and evaluation combined with the qualification of senior accountant since 2003. After several years of trial, the system of senior accountant examination and evaluation has been carried out nationwide in 2007.

Since last year, the Ministry of finance began to explore the establishment of a positive senior accountant examination evaluation system based on the unified examination of senior accountants.

"From the realistic needs and long-term development of the accounting profession, it is necessary to explore the establishment of a positive senior accountant evaluation system, on the one hand, to encourage tens of millions of employees in the industry, and on the other hand, to link up with the training of leading talents.

Of course, the concrete evaluation method is worth studying deeply.

Liu Yuting said.

Nowadays, the international competition is becoming increasingly fierce. In reforming the accounting title examination, the Ministry of finance has consciously started to accelerate the training and forging of an accounting leading talent team with international vision, strategic thinking and international competitiveness, and has played an important role in promoting the overall quality of the accounting industry and enhancing its competitiveness through giving full play to its role of radiation, drive, guidance and demonstration.

In 2005, the Ministry of Finance officially launched the accounting leading talent training project.

"The national level accounting talent training plan is the motive force that initially attracted me to take part in the examination."

Wei Xiu was admitted to the national accounting leading talent class in his first year as an enterprise.

Now, the 6 year course has been completed, and most of the classmates with Wei Xiuchang have been promoted. Most importantly, they have obtained the best platform to communicate with their peers, and the rare opportunity to contact high-end accounting experts and foreign accounting bodies.

Nowadays, accounting leading personnel training has become a major brand in China's accounting industry.

At the national level, there is a training project for accounting leading talents. In Guangxi, the training of top 100 talents in accounting has become a breakthrough attempt to cultivate accounting talents in the local area, and has achieved good results. At present, 191 accountants in Guangxi have participated in the "ten thousand" training, of which more than 150 have been awarded senior accountants and 10 have been selected as the national accounting training courses.

In September 21, 2010, in order to implement the overall requirements of the outline of the national medium and long term talent development plan (2010-2020 years), the Ministry of Finance issued the "long term talent development plan for the accounting industry (2010-2020 years)", and clearly pointed out the guiding principles, development goals, policies and measures, major projects and organizational guarantee for the development of accounting talents in China in 2020.

After more than 20 years' efforts, we can say that the scale of talents in Pyramid's tower and tower has expanded a lot, which is an important achievement of accounting management in China.