Implementing Accrual Accounting in the Public Sector

By Suzanne Flynn, Delphine Moretti, Joseph Cavanagh

September 15, 2016

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Suzanne Flynn, Delphine Moretti, and Joseph Cavanagh. Implementing Accrual Accounting in the Public Sector, (USA: International Monetary Fund, 2016) accessed September 19, 2024

Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This technical note and manual (TNM) explains what accrual accounting means for the public sector and discusses current trends in moving from cash to accrual accounting. It outlines factors governments should consider in preparing for the move and sequencing of the transition. The note recognizes that governments considering accounting reforms will have different starting points across the public sector, different objectives, and varying coverage of the existing financial statements, it therefore recommends that governments consider each of these, and the materiality of stocks, flows and entities outside of government accounts when planning reforms and design the sequencing and stages involved accordingly. Building on international experiences, the note proposes four possible phases for progressively increasing the financial operations reported in the balance sheet and operating statement, with the ultimate aim of including all institutional units under the effective control of government in fiscal reports.

Subject: Accounting standards, Accrual accounting, Currencies, Financial statements, Fiscal accounting and reporting, Money, Public financial management (PFM)

Keywords: Accounting policy, Accounting standards, Accounts payable, Accrual accounting, Africa, Australia and New Zealand, Cash accounting, Cash balance, Cash basis, Cash flow, Central government, Currencies, Equity investment, Financial statements, Fiscal accounting and reporting, GFSM, Government accounting, Government financial reporting, IPSAS, Local government, Modified cash basis, TNM

Publication Details

Pages:

59
Volume:

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DOI:

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Issue:

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Series:

Technical Notes and Manuals No. 2016/006
Stock No:

TNMEA2016006
ISBN:

9781513589466
ISSN:

2075-8669

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