Discussion on the related issues of enterprise pension accounting in China.



1.2 financing mechanism

At present, China's enterprises are seriously in arrears in the payment of old-age insurance premiums. In addition to objective factors such as poor operating conditions, intentional evasion of fees is still an important subjective reason. Although China is currently implementing a basic pension system of "pooling accounts", the introduction of personal accounts on the basis of ensuring the basic livelihood of the elderly is intended to give full play to the incentive mechanism of personal accounts and improve the welfare level of the elderly. However, the reality is that under the system of "integration of accounts", the phenomenon of "free riding" and "difficulty in paying fees" is still very serious, and the incentive effect of personal accounts has not really been brought into play. The reason is that in the basic pension system currently implemented in my country, the proportion of personal accounts is relatively small, and the benefits of the elderly are not directly linked to the contributions of employees. Whether it is payment from social pooling or payment from personal accounts, there is a serious lack of incentives. The payment of employees to their personal accounts and the payment of enterprises to social pooling are not active, and they do not care about each other or supervise each other. Whether to pay or pay in full, there is even a motive of "deliberately evading fees" in both aspects.

1.3 accounting treatment

does not conform to the accrual principle. The pension is part of the labor remuneration received by the employee for the service of the enterprise during the working period. Compared with the salary, the difference is that the salary is the pay-as-you-go part of the labor remuneration, while the pension is the deferred payment part of the employee's labor remuneration. Since the pension is part of the remuneration of labor, during the period of the employee's service, the enterprise shall, while paying the wages, timely recognize and measure the additional value of this part of the deferred payment in accordance with the accrual principle, and include it in the current cost.

2 Reflections on the Development of Pension Accounting in China

For the principles of accounting for corporate pensions in China, there are several aspects that need to be improved:

(1) Improve the pay-as-you-go system and gradually shift to a full fund system. Although the reform of China's pension system has been over for so many years, it is still essentially a pay-as-you-go system. Enterprises are the main contributors of old-age insurance funds, but due to the particularity of China's national conditions, the right to use China's current basic old-age insurance funds is controlled by the government. Enterprises only have the obligation to pay insurance premiums on time, but do not have the control and ownership of the funds they have paid. How much pension employees can receive after retirement depends on the provisions of the state and the accumulation of their personal accounts, enterprises are not obliged to make any guarantee of the amount of pension received by employees, therefore, from the implementation of the pension system, China's current pension system belongs to the fixed deposit system, or in the case of enterprises, should also be in accordance with the fixed deposit system for accounting treatment. Based on this reality, the author believes that China's current basic old-age insurance should first improve the pay-as-you-go system on the existing basis, and then with the enhancement of national financial resources, the continuous shrinkage of the social pooling part and the reality of personal accounts, the problem of hidden debts can be completely solved before the transformation to the full fund system can be realized.

(2) Introduce a social security tax to eliminate the lack of awareness of pension contributions by enterprises and employees. The government can also solve the lack of understanding of enterprises and employees on payment by levying social security tax. The social security tax is a tax levied on all enterprises and employees that generate wage income in order to raise specific social security funds, and is the main source of funds for raising social security funds in many countries in the world today. It is produced and developed with the formation of the social security system. The introduction of the social security tax provides a financial guarantee for the realization of this transformation. It not only raises funds for the society as a whole, but also raises funds for individual accounts. The fee-to-tax reform itself strengthens the compulsion of financing and ensures that pensions have a reliable source of funds. It will be of great significance to solve the financing dilemma of my country's current pension system.

(3) In specific accounting treatment, try to follow the accrual and disclosure principles to strengthen international standards.

Accrual principle. The use of accrual means using a standardized method to measure the net cost of a period pension 'it is a measure that can provide a more realistic net cost of a period pension than the cost used in past accounting practices. The accrual system reflects the requirements of the underlying plan 'to better recognize the employee's pension cost during the employee's service' to improve comparability and understandability by recognizing the compensation cost of the employee's pension during the approximate service period of the employee and linking that cost directly to the terms of the plan; at the same time, 'it improves the quality of financial reports' so that reporting users can better understand the disclosure of the scope and effectiveness of pensions and related financial arrangements used by enterprises to provide employees with more complete and timely and proportionate information than can be contained in current financial reports.

Disclosure Principle. Expanding the scope of disclosure in financial reports' makes the information reflected more timely and complete than the information that can be reflected in the current financial report. China's current accounting information disclosure 'on pension information disclosure is almost no. First of all, this practice violates the principle of truth' because "liabilities are debts borne by enterprises that need to be paid by assets or services in the future" 'obviously' pensions should be listed as liabilities of enterprises; Secondly, this practice violates the proportionality principle that "income should be matched with expenses" and does not recognize expenses when realizing income. Finally, this practice cannot reflect the social responsibility of enterprises. In addition to the disclosure of the income statement, balance sheet and cash flow statement, 'other disclosures are required, such as the policy of raising funds for employees covered by retirement plans.

to strengthen with international standards. The individual account in the basic pension plan should implement a definite income plan, the fund composed of the individual account should be managed by the government social security institution, and the fund management should pay attention to risk prevention and the stability of income; the individual account in the enterprise supplementary old-age insurance plan should implement the definite withdrawal plan, and the fund composed of the individual account should be selected by the person participating in the insurance plan, the Fund may engage in a variety of investment activities under the supervision of the Social Security Agency, with the return on the investment received by the participants and the risk borne by the participants. A comparable information platform is provided through these pension plan adjustments 'to achieve convergence with the principles of treatment in Western countries.

In short, 'It is imperative to implement pension accounting' from the national conditions of our country' in the combination of theory and practice 'to continuously study and solve the specific problems in pension management' to make it scientific and institutionalized.


[1] Ge Jiashu Liu Feng. Accounting Theory: A Study of the Conceptual Structure of Financial Accounting [M]. Beijing: China Financial and Economic Publishing House 2003.

[2] China Certified Public Accountant Education Textbook Editing Committee. Advanced Financial Accounting [M]. Beijing: Economic Science Press 2002.

[3] Zhu Kangping. Reflections on the formulation of accounting standards for corporate pensions [J]. Accounting Research '2004,(3).