Application of Accrual-based Government Comprehensive Financial Reports: Progress, Difficulties and Suggestions

The application of accrual-based government comprehensive financial reports is an important breakthrough for improving the government’s fiscal and financial management capability. In recent years, the compilation of the government’s comprehensive financial reports has basically achieved full coverage across central and local government departments at all levels. Combining local practice, this study finds that there are still many difficulties and room for optimization in applying accrual-based government comprehensive financial reports to meet the needs of government management, particularly in terms of fully identifying government financial risks, reflecting key departmental decision-making priorities, and linking with budget performance management. This paper suggests that a framework for the application of government comprehensive financial reports should be gradually established to meet the needs of government management and adapt to its evolving demands. This framework can be achieved by improving the content preparation of the reports, optimizing the design of metrics for their application, and strengthening their integration with financial management. The goal is to maximize the utility of the information contained in these reports and thereby continuously enhance the government’s fiscal and financial management capability.