ABSTRACT
Government bodies and non-profit organizations in China must strictly comply with rigorous accounting regulations, the so called ‘budgetary accounting systems', which are formulated by the Department of Budgetary Administration under the Ministry of Finance in the central government. Comprehension of budgetary accounting cannot be achieved without an understanding of the Chinese system of budgetary administration. Budgetary accounting plays an important role in the central government’s budgetary administration. The institutional budgetary accounting is therefore composed of accounting for full-amount budgetary units, accounting for Marginal budgetary units and accounting for self-financed budgetary units. Chinese budgetary accounting differs considerably not only from business accounting in China, but also from its counterpart systems in western countries. Segregated accounting is required for on-budget funds and off-budget funds, and each should be self-balanced. The concept of ‘fund accounting’ is adopted in Chinese budgetary accounting and reporting.
