Arguments for Introducing Accrual Based Accounting in the Public Sector

6 Pages Posted: 21 Oct 2009  

Cristina Aurora Bunea-Bontas

Constantin Brancoveanu University

Mihaela Cosmina Petre

Constantin Brancoveanu University

Date Written: May 1, 2009

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.

Keywords: public sector, accrual-based accounting, public accountancy reform in Romania

JEL Classification: M41

Suggested Citation

Bunea-Bontas, Cristina Aurora and Petre, Mihaela Cosmina, Arguments for Introducing Accrual Based Accounting in the Public Sector (May 1, 2009). Available at SSRN: https://ssrn.com/abstract=1491663 or http://dx.doi.org/10.2139/ssrn.1491663

Cristina Aurora Bunea-Bontas (Contact Author)

Constantin Brancoveanu University ( email )

Ribinelor 14-16

Mihaela Cosmina Petre

Constantin Brancoveanu University ( email )

Ribinelor 14-16
Pite┼čti
Romania

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