Municipal Financial Reporting: Managing the Numbers

Public Budgeting and Finance, Volume 1, Issue 3, pages 56–61, September 1981

Posted: 21 Aug 2014

See all articles by K. K. Raman

K. K. Raman

The University of Texas at San Antonio

Date Written: Fall 1981

Abstract

Corporate attempts at "managing" earnings have often involved the use of managerial judgment as to the appropriate event in the earnings cycle that is the critical one. In the municipal context, numerous opportunities exist to postpone or accelerate the outflow of liquid financial resources on a basis unrelated to the incurrence of the underlying ex­pense (asset consumption). Further, revenues are usually not the outcome of an earn­ings process, but rather of the government's power to tax and are raised so as to meet a targeted amount of expenditure. In practice, therefore, revenue recognition has been tied to the accounting period in which, as per management's best judgment, the monies may be prudently spent. The result has been to provide the municipal finance officer with considerable leeway in reporting operating results.

Keywords: Governmental financial reporting, Managing the numbers

JEL Classification: M41, M42, M48

Suggested Citation

Raman, K. K., Municipal Financial Reporting: Managing the Numbers (Fall 1981). Public Budgeting and Finance, Volume 1, Issue 3, pages 56–61, September 1981. Available at SSRN: https://ssrn.com/abstract=2483118

K. K. Raman (Contact Author)

The University of Texas at San Antonio ( email )

One UTSA Circle
San Antonio, TX 78249
United States
210-458-8749 (Phone)

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