Grant Thornton convenes to kick off the MoF-commissioned PPP accounting research project

On March 2, a kick-off meeting for the MoF-commissioned PPP accounting research project was held at Grant Thornton national office. Xu Hua, CEO of Grant Thornton, Qiu Lianqiang and Chu Yantao, technical partners of Grant Thornton, Liu Dongdong, national head of advisory of Grant Thornton as well as Shen Xiaoying, research project manager attended the meeting. Zhang Juan, division chief of the accounting department of the Ministry of Finance (MoF) and researcher Yang Haifeng were also present. At the meeting, the participants discussed issues related to research framework, research methodology and task assignment.

The research team will be led by the technical department of Grant Thornton and include internal experts from Grant Thornton offices in Beijing, Ningbo, Kunming and Wuhan, as well as external experts from the Ministry of Finance, Beijing National Accounting Institute, Xiamen National Accounting Institute and China Academy of Fiscal Sciences.

Pursuant to the Accrual Government Comprehensive Financial Reporting Reform Plan of the Ministry of Finance, the accounting department initiated the government accounting reform in 2015 and embarked on development of the government accounting standards and the government financial reporting system and framework. Up to now, the accounting department has issued the "Government Accounting Standards - Basic Guidelines" and four government accounting standards on inventory, investment, fixed assets and intangible assets. Exposure drafts on standards of accounting subjects and accounting statements of administrative units, public infrastructure, and government reserve supplies were also made available.

In 2016 and 2017, the accounting department of the Ministry of Finance launched 13 research projects on government accounting concerning issues such as contingencies, land, fixed asset depreciation, revenue, cost, leasing, PPP accounting, capital construction, convergence of government accounting system, presentation of government financial statements, special asset accounting and etc. Researchers have been professionals from universities, research institutions and accounting firms.

Grant Thornton has been undertaking the MoF accounting research projects for two consecutive years. The government cost accounting research work accomplished in 2016 has won praises from the assessment experts of the Ministry.