Implementation of uniform state reporting and accrual accounting
As from January 2008, public sector organizations will apply new accounting standards.
Legislative process of introducing new accounting methodology for the public sector is expected to be completed in autumn of this year. The new methodology is to be applied for the whole public sector, including governmental institutions, municipalities as well as their public organizations financed from the state budget or other public contributions. Applying new accounting standards will introduce the use of the accrual basis into the accounting of these organizations.
The new accounting and reporting methodology in the public sector organizations will enable more effective administration of public funds and full harmonization of the accounting of these organizations with IPSAS.
Furthermore, the financial statements of the public sector organizations will be more understandable for the public, as the new accounting principles applied by these organizations will be more similar to those applied by commercial organizations.
The publishing of new accounting methodology for the public sector is one of the project objectives for the project Implementation of uniform state reporting and accrual accounting. The basic objective of this project is to propose and to implement accounting and reporting system of public finance that:
- would effective provide the information needed by the management for planning, organization and control purposes,
- would prepare and provide financial statements in accordance with specific accounting standards and presentation standards for external users.