ACCRUALS IN OECD MEMBER COUNTRIES Jón R. Blöndal Directorate for Public Governance Santiago de...
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Transcript of ACCRUALS IN OECD MEMBER COUNTRIES Jón R. Blöndal Directorate for Public Governance Santiago de...
![Page 1: ACCRUALS IN OECD MEMBER COUNTRIES Jón R. Blöndal Directorate for Public Governance Santiago de Chile 29January 2003.](https://reader036.fdocuments.in/reader036/viewer/2022082818/56649f1a5503460f94c2ff1e/html5/thumbnails/1.jpg)
ACCRUALS IN
OECD MEMBER COUNTRIES
Jón R. Blöndal
Directorate for Public Governance
Santiago de Chile
29January 2003
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AGENDA
• Why Accruals?• Application of Accruals
– Overview of Member Countries’ Practices
• Key Issues– Recognition Issues– Valuation Issues – Accounting Standards– Implementing Accruals
• Conclusion: Importance of Cash
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WHY ACCRUALS ?
• Major Trend in OECD Member countries• Making the True Cost of Government Services Transparent• Linkages with Wider Public Sector Reforms
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SPECTRUM OF ACCRUALS (1)
• Cash Basis, But Supplementary Information Presented on Accrual Basis
• Cash Basis, Except Certain Transactions on Accrual Basis
• Accrual Basis, Except No Capitalisation or Depreciation of Assets
• Full Accrual Basis
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SPECTRUM OF ACCRUALS (2)
• Departmental/Agency Financial Statements
• Consolidated, Whole of Government Financial Statements
• Budget
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Recognition Issues
• Heritage Assets ?• Military Systems ?• Infrastructure Assets ?• Natural Resource Assets ?• Social Insurance Programs ?
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Valuation Issues
• Historical Cost• Current Market Value
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Accounting Standards
Three Basic Models for Deciding Them
• Traditional: Finance Ministry Decision, with or without Consultative Group • Australia/New Zealand: Single Standard Setter for Private and Public Sectors• International Public Sector Accounting Standards
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Implementation Issues
• Too Slow vs. Too Fast• Education and Training Issues
– Including Members of Parliament, the Media and the Public
• Computer Systems• Assets Registers• Determining Accounting Standards
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Conclusion:Cash Still Very Important
• Role of Cash-Flow Statement• Focus on Economic Impact
– Cash Injection/Withdrawal
• Fiscal Policy Setting• In-Year Control
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www.oecd.org/gov/budget
OECD Journal on Budgeting