Accounting Rules for the European Communities: A Theoretical Analysis

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

38 Pages Posted: 20 Jun 2010 Last revised: 8 Nov 2014

Yuri Biondi

French National Center for Scientific Research (CNRS)

Michela Soverchia

University of Macerata - Department of Economics and Law

Date Written: June 21, 2011

Abstract

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.

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, P48

Suggested Citation

Biondi, Yuri and Soverchia, Michela, Accounting Rules for the European Communities: A Theoretical Analysis (June 21, 2011). 6th EIASM international conference on Accounting, Auditing and Management in Public Sector Reforms, 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. Available at SSRN: https://ssrn.com/abstract=1627666 or http://dx.doi.org/10.2139/ssrn.1627666

Yuri Biondi (Contact Author)

French National Center for Scientific Research (CNRS) ( email )

IRISSO - University Paris Dauphine PSL
Place Marechal Lattre Tassigny
75016 Paris
France

HOME PAGE: http://yuri.biondi.free.fr/

Michela Soverchia

University of Macerata - Department of Economics and Law ( email )

Via Crescimbeni, 20
Macerata, MC 62100
Italy
+39.0733.2583255 (Phone)
+39.0733.2583205 (Fax)

HOME PAGE: http://docenti.unimc.it/docenti/michela-soverchia

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