China issues new financial and accounting systems of hospital

  Based on the State Council's arrangement, the Ministry of Finance issues the following 4 accounting systems of hospital: Caishei(2010) No.306, the amended "Financial system of hospital", Caikuai(2010)No.27, "Accounting system of hospital", Caishe(2010)No.307, "Financial system of basic medicare & health institute" and Caikuai(2010) No.26, "Financial system of basic medicare & health institute"; the Chinese institute of Certified Public Accountants issues Kuaixie(2011)No.3, Guiding for auditing financial statements of hospital".

  In China, the above new financial and accounting systems of hospital will be tried out in the public hospitals and will be executed from January 1, 2012; the above new financial and accounting systems of basic medicare & health institute and new audit of financial statements of hospital will be executed from July 1, 2011. The execution of the above 5 systems will be helpful for hospitals and medicare & health institutes to strengthen their budget and finance management and accounting information quality, to control expenses and costs, to improve their operating systems, to lighten people's medical burdens. The Ministry of Finance requires the different levels of financial departments cooperate with the meidcare & health departments and accounting firms in order to execute the above 5 systems.

  The executions of the above 5 systems provides a new market for our medical auditing work. At the same time, these executions raise new requirements for our auditing works of hospitals, the Chi8nese accounting firms face a new opportunity and challenge. Our firm wants to use this opportunity and faces this challenge to explore our auditing business of hospitals and medicare& health institutes.