The Emergence And Development Of Accounting In China

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Later, in the book "Meng Zi justice", Jiao Chao, a scholar of the Qing Dynasty, interpreted the term "accounting" as saying: "piecemeal calculation is the best way to make a meeting."

That is to say, the term "accounting" includes the two levels of daily accounting and regular accounting, basically expressing the main characteristics of accounting in accounting.

With the establishment of slavery countries, when the accounting became the state's behavior, "Guanting accounting" came into being.

In order to manage the collection and distribution of tribute Fu and military service, the Western Zhou Dynasty set up a high office in the Guanting middle school to manage the revenues and expenditures of the national grain, taxes and government offices, set up an independent accounting department, and had a fairly clear division of labor with the business departments such as property preservation, and accounting and tellers also had a preliminary division of labor.

In addition, the Western Zhou Dynasty also stipulated the accounting inspection system based on "mutual participation in examination, daily examination and monthly examination."

Among them, "mutual participation", "monthly requirement" and "annual meeting" are equivalent to today's daily, monthly and annual reports, and have initially formed the embryonic form of accounting statements.

It can be seen that China's accounting has developed considerably in the Western Zhou Dynasty.

As Chatfield, an American Accounting historian, pointed out in his book the history of accounting thought, "Zhou Dai is unparalleled in the ancient world in terms of internal control, budgeting and auditing procedures."

With the continuous development of the productive forces in the feudal society, the accounting techniques and methods have also made progress.

In the Qin and Han Dynasties, a simple accounting record method was put forward, which takes "entering" and "leaving" as the recording symbols, and taking "entering one out: surplus" (or "collecting one payment = remaining") as the basic accounting formula.

Since the beginning of Western Han Dynasty, people have divided accounting records from statistical records, and referred to the simplified volumes of accounting items as "books", "books" or "redundant books".

Since then, China's accounting books have been named more clearly.

The Tang and Song dynasties were the heyday of the feudal society in China. An outstanding achievement in accounting was the establishment and improvement of the scientific settlement method, namely, the "four column knot algorithm", which included four factors (namely, four pillars) in the accounting books and statements, namely, "management", "new income", "opening up" and "reality".

When the "initial balance", "current income", "current expenditure" and "ending balance" are used in modern accounting, and according to their internal relations, the changes and results of the increase and decrease of property materials and financial revenues and expenditures in a certain period are calculated and evaluated according to certain formulas.

The basic formula of the "four column knot algorithm" is "old pipe + new collection and expulsion = real".

The "four column knot algorithm" can not only be used to check the correctness of daily accounting records, but also can classify and summarize daily accounting records, so as to play the role of system and comprehensive reflection. The establishment and application of the "four column knot algorithm" is a major breakup of Chinese accounting methods in the Tang and Song dynasties. It not only solves the scientific problems of accounting settlement methods and a series of technical problems in accounting, but also improves the design of accounting books and report forms, accounts settlement and reimbursement work to a new level, which has further improved our traditional single entry bookkeeping methods and laid the foundation for the development of single account bookkeeping to double entry bookkeeping in China.

It can be said that the "four column knot algorithm" is the quintessence of Chinese accounting method, a milestone in the development of accounting in China, and an important contribution of accounting to the development of accounting methods in the world. It has had an important impact on Accounting in many countries in the world.

The business community created a "Longmen account" that can calculate profit and loss on the basis of the "four column knot algorithm". It divided all accounts into four categories: "enter" (equivalent income), "pay" (equivalent to expenditure), "deposit" (equivalent to assets), "that" (equivalent to capital and liabilities), adopted the balance formula of "pay in advance = reserve one", calculate profits and losses in two tracks, and compile "pay in advance" and "keep the table" separately at the end of the year (they are equivalent to the "profit statement" and "balance sheet" in modern accounting), respectively, and the two tables should calculate the profit and loss number equally, which is called "closure gate". In the late Ming and early Qing Dynasties, with the development of handicraft industry, commerce and capitalist economic relations, China

The advent of "Longmen account" is the origin of the double entry bookkeeping method with the characteristics of our country. It also marks the emergence of our country's department accounting business accounting.

In the middle of the L8 Century (that is, Qianlong to Jiaqing year of the Qing Dynasty), on the basis of the "Longmen account", China has developed a more sophisticated double entry bookkeeping method called "four legged accounts" (also known as "heaven and earth accounts").

It requires that all accounts, including cash receipts and pfers, be recorded in two books. At the same time, it is necessary to register "receipts" (receipts) and "debit accounts" (Fu Fang) to reflect the origin and the origin of the same account, so it is called "four legged accounts".

Its books are written in vertical format, divided into two upper and lower levels, written in the upper and lower levels, called "heaven", and the lower category is recorded as "land". The amount in the upper and lower two grids must be equal, and it is called "heaven and earth".

The emergence of "four legged accounts" has promoted Chinese accounting to a new stage of development. It is a glorious chapter in the history of modern accounting development in China.

In modern times, especially in the middle and late Qing Dynasty, as the feudal rulers carried out the policy of "emphasizing agriculture and restraining commerce" and closed door policy for a long time, the social and economic development was slow, and the gap between the world economy and the world economy was widening.

After the Opium War in 1840, Western powers divided China into a semi feudal and semi colonial society. Imperialist powers controlled China's customs, railways, postal departments and other departments under the unequal treaties, and forced the implementation of western style accounting in factories and banks in China. Thus, the period of "Chinese accounting" and "western style accounting" coexisted.

In l905, with the famous accountant Mr. Xie Lin (China's first certified public accountant), Mr. Xu Yongzuo (the promoter of the improved Chinese accounting movement) and Mr. Pan Xulun (founder of Chinese accounting and founder of Li Xin Accounting) and so on, the pioneer of China's accounting profession was committed to improving or reforming our accounting.

The introduction of the Western double loan bookkeeping campaign is known as "the first revolution of accounting in China".

Since the founding of new China in l949, China has implemented a highly centralized planned economic system, introduced the corresponding accounting model of the former Soviet Union, set up the accounting department in the Ministry of Finance (renamed the accounting affairs management department in 1982), and took charge of the accounting work in the whole country.

The introduction of the accounting model of the former Soviet Union is a major change in the accounting theory, system and method of old China, and the second revolution of accounting in China.

In 1950, the Ministry of finance began to unify the accounting system of enterprises throughout the country.

Due to the influence of the "left" trend of thought, during the "great leap forward" period in 1958 and the "ten year turmoil" which began in 1966, accounting work in China has been seriously damaged.

In 1978, after the the third Plenary Session of the 11th CPC Central Committee of the Communist Party of China, China implemented a policy of reform and opening up, and the national economy has been developing rapidly. The position and role of accounting in economic life is becoming more and more important.

In order to meet the needs of economic restructuring and opening to the outside world, the Ministry of Finance issued the Provisional Regulations on the establishment of the accounting advisory office in December l980, marking the resumption of the CPA system in China.

In 1985, the first "People's Republic of China accounting law" (Revised and revised in 1993 and l999) was promulgated in New China, which marks the beginning of the rule of law of China's accounting work.

In 1992, the 14th National Congress of the Communist Party of China clearly put forward the goal of establishing a socialist market economic system. For this purpose, the financial and accounting systems of enterprises were greatly changed. In November 30th of l992, the Ministry of Finance issued the general financial rules for enterprises and the accounting standards for enterprises, and subsequently issued the enterprise financial system and the enterprise accounting system of the 13 industries (two systems for short), and implemented all enterprises in the country since July 1, 1993.

The promulgation and implementation of the "two systems" symbolizes that our accounting mode has been in line with the international accounting practice and has been initially coordinated. It is called "the third revolution of accounting in China".

The accounting standards for enterprises is the basic criterion of enterprise accounting in China.

In May of l997, the Ministry of Finance issued the first accounting standard of China, "accounting standards for enterprises - the disclosure of related party relations and pactions". At the end of September 2003, 16 specific accounting standards were issued.

With the acceleration of international economic integration, the Ministry of Finance issued a unified enterprise accounting system to break the boundaries of industry and ownership on 2000 29, and implemented it in the Limited by Share Ltd within January 1, 2001. It has been implemented in all large and medium-sized enterprises by 2005.

In 2005, the Ministry of Finance issued the "small business accounting system".

With the further deepening of reform, the integration trend of world economy, the globalization process of international capital market and the rapid development of knowledge economy, as well as the continuous development and perfection of accounting theory, it is required that the accounting standards of enterprises in our country conform to the demand of accounting information in capital market, provide more pparent and comparable financial information for global investors, promote overseas financing of Chinese enterprises and reduce the financing cost of.

Especially after joining the WTO, the need for international convergence of accounting standards is becoming increasingly urgent, and the call for establishing an international accounting standard system is increasing.

In 2003, the Ministry of Finance launched the construction of new accounting standards.

In February 15, 2006, after many efforts, the Ministry of Finance issued a new version in the form of accounting document No. 3.

With the increasing development of production and the complexity of El in economic management, accounting has gone through a developing process from low to high, from simple to complex, from imperfect to gradually improving, and gradually standardized.

The emergence and development history of accounting tells us that accounting is always dependent on the technology and organization of production and is restricted by it, so it has a strong technical nature.

Accounting is developed, enriched and perfected along with the development and change of social and economic environment, so accounting has certain social attributes.

Practice has proved that "the more the economy develops, the more important the accounting is."

As Marx pointed out, "the more process is carried out according to the scale of society, the more it loses the purely personal nature. It is more necessary to keep bookkeeping for process control and conceptual summary."