Xiaonian Liu
The Zhongnan Economic
& Law University
We are witnessing an almost worldwide public
sector reform. In contrast with the public sector reforms of other countries,
that of China has some unique characteristics. This is mainly due to her
politic system and economic reform mode. China is still a socialist country and undergoing
a transformation from planning economy to market economy. Her numerous
state-owned enterprises and non-profit institutions as well as government
agencies are facing the challenge of market economy requirements. At the same time, China follows a step-by-step gradual rather than a shock economic reform mode.
As a result, her relative accounting reforms in public sector also follow a
step- by- step mode. By now, accounting reforms in public sector have been
carried out in aspects of accounting system, financial management and
accounting management. The reforms bring many changes to accounting in public
sector. Though the changes are not necessarily very modern, they reflect
Chinese progress towards modernization of public sector.