Accounting Rules for the European Communities: A Theoretical Analysis
French National Center for Scientific Research (CNRS)
University of Macerata - Department of Economics and Law
June 21, 2011
6th EIASM international conference on Accounting, Auditing and Management in Public Sector Reforms, September 2010
32nd EGPA Annual Conference, PSG XIV on EU Administration and Multi-Level Governance, September 2010
13th Biennial CIGAR Conference, Ghent, June 9-10, 2011
Accounting, Economics and Law: A Convivium. Volume 4, Issue 3, Pages 179–214, DOI: 10.1515/ael-2013-0063, April 2014
A theoretical analysis is provided of the accounting framework and rules applied to the annual accounts of the European Communities (EC) since 2004. This accounting system draws upon International Public Sector Accounting Standards (IPSAS) and is based on accrual accounting, under a dual integrated accounting process with the cash accounting that is maintained. It purports to shape the financial accounting and reporting of the supranational entity that are the EC. This entity carries out a wide range of policies and programs through the financial resources provided by the European Union Member States, making it accountable for incurred expenditure to these constituents. By analyzing the accounting conceptual framework and the sixteen specific rules, the paper assesses the capacity of its accounting system to provide a true and fair representation of the economy of the EC entity featured by that expenditure-sharing purpose, under the overall no-profit motive that is typical of every public administration.
Number of Pages in PDF File: 38
Keywords: Public Sector Financial Accounting, Governmental Financial Accounting, Public Sector Accountability, Cash Basis, Accrual Basis, Modified Cash Basis, European Commission, accounting and economics of supranational organisations, conceptual framework
JEL Classification: H83, M48, M41, E02, P48Accepted Paper Series
Date posted: June 20, 2010 ; Last revised: November 8, 2014
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