The 2009 Accounting and Treasury Work Conference of the People s Bank of China (PBC) was convened in Hangzhou on April 15 and 16. Representatives attending the meeting summarized the progress in 2008 and made arrangements for accounting and internal control in 2009. Deputy Governor Yi Gang addressed the conference.
Deputy Governor Yi remarked that, facing the complicated circumstances in 2008, accounting and treasury departments of the PBC worked actively to raise disaster relief fund, improved accounting and treasury institutions and reinforced internal control, which supported the smooth functioning of the PBC. Relevant accounting treatment procedures have been formulated in a timely manner to facilitate the implementation of monetary policies including the adjustment of benchmark interest rate and reserve requirement ratios, open market operations and the use of a mix of monetary instruments.
Deputy Governor Yi urged accounting and treasury departments to improve their work in a comprehensive manner, with special efforts made in the following areas: 1. Reinforce key links to eliminate hidden risks; 2. Improve the institutional system and internal control and explore new approaches of management; 3.
Strengthen the monitoring, examination and guidance in accounting, so as to identify loopholes and lessen risks; 4. Put the role of coordination of the accounting and treasury departments into full play, so as to better cooperate with line departments and to prevent the absence of management and fund risks caused by decentralized accounting and management.
Yi highlighted the importance of economy and urged branch offices to enhance management of accounting by clearly defining responsibilities and improving standard procedures and internal control; to improve the reporting and filing system of the allocation of budget funds to make it more scientific and transparent; to take the opportunity of the launch of the comprehensive accounting management system to explore new management methods, strengthen budgetary fund supervision, with a bid to manage accounting work in a more timely and effective manner and to make more efficient use of budgetary funds.
Meanwhile, efforts would be made to reinforce the examination and guidance of infrastructure construction and strengthen the management of project tender; to continue to expand the size and scope of centralized procurement and actively promote sunshine procurement; to accelerate the application of IT in the accounting system; to fully tap the capacity of existing fixed assets; improve the accounting management of the PBC affiliates and further the reform of the modern enterprise system; and to provide adequate training to enhance team building.
Deputy Governor Yi put forward six requirements for the accounting and treasury work in the near future. 1. Apply the scientific outlook of development to the accounting and treasury work. 2. Attach great importance to thriftiness, especially in the context of the ongoing international crisis. 3. Strengthen the management of accounting security.
Great efforts should be made to promote e-accounting, standardize business procedures and make business operations traceable, so as to enhance the transparency and deterrent power of accounting information to prevent fund risks and the occurrence of crimes and irregularities. 4. Improve the analytic ability.
Relevant institutions should follow the latest developments of domestic and foreign accounting rules and study their impact on the economy. The procyclicality of accounting rules, the valuation of financial assets and other key issues should be studied. The market environment for fair value accounting should be reviewed, and according to the development pattern of China s economic and financial sector, research findings should be applied to daily accounting practices of the PBC.
5. Advance the reform of the affiliated enterprises to strengthen their capability of risk management and market expansion. 6. Strictly observe anti-corruption rules and regulations.
Deputy Governor Yi also delivered a lecture entitled Reshaping Fair Value Accounting.
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