A Brief Canvas on Accounting Reforms in Indian Railways: Why & How
The Management Accountant Journal of Institute of Cost Accountants of India, April 2019, Vol. 54, No. 04, Cover Story-pp.22-27
Posted: 8 Dec 2019
Date Written: April 10, 2019
An efficient transport system and its maintenance for growth are prerequisites for any economy. In the Indian economy, the railway is the most important mode of transportation as it connects small big cities and villages across India. In the present scenario, the Indian railway is the backbone because of the reliable and feasible source on land. According to Vision 2020, it has been projected to develop a world-class railway infrastructure like USA, Japan and China. Indian Railway already has a robust system of accounting, and thus for a fair degree of certainty and cost implications, Indian Railway shall benefit from shifting to accrual-based accounting. For this purpose, accounting reforms in Indian Railways are needed which consist of accrual-based accounting+ performance costing and outcome budgeting system.
With this background, the aim of the particular study is to review and examine the needs, implications and outcomes of recent accounting reforms in Indian Railway.
Keywords: Accrual Accounting, North Western Railways, Outcome Budgeting, Performance Costing
JEL Classification: M41
Suggested Citation: Suggested Citation