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Arguments for introducing accrual based accounting in the public sector

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Author Info
Bunea-Bontaş, Cristina Aurora
Petre, Mihaela Cosmina

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Abstract

From a long time, accounting for public entities has been on a cash basis, with no change until the '80s when it was considered appropriate that these should move closer to commercial accounting principles practiced in the private sector. Demands for better accountability by governments and by public sector managers are being heard around the world as the public realizes that living on credit is not sustainable for individuals and the same principle applies to governments. The paper highlights the main characteristics of accrual accounting, arguments and counter-arguments on this reform and particular aspects of Public Accountancy reform in Romania through introduction of accounting-based accrual, in order to facilitate better planning, financial management and decision making in government as well as an accepted way of measuring the economy, efficiency and effectiveness of public policies.

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File URL: http://mpra.ub.uni-muenchen.de/18134/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18134.

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Date of creation: May 2009
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Handle: RePEc:pra:mprapa:18134

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Related research
Keywords: public sector; accrual-based accounting; public accountancy reform in Romania;

Find related papers by JEL classification:
M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting

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This page was last updated on 2009-12-21.


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