Accrual based accounting

A PULSAR FINCOP organized Smart Interactive Talk (“SIT”) – a virtual workshop was held on July 10, 2018 on the subject of “accrual budgeting: advantages and disadvantages”. This subject had been identified as a priority area by FINCOP participants with particular reference to if and when countries should introduce accrual budgeting in the public sector and its linkages with accrual accounting. This discussion is particularly relevant for public sector accrual accounting policy makers and reform leaders to inform their decisions on the reform sequencing and planning.

This event was held in collaboration with the ACCA and conducted as a continuation of  a series of virtual events on PULSAR Education Community of Practice in the light of COVID-19 challenges that limits face-to-face workshops.  The Webinar’s  targeted audience included both the members of the PULSAR EduCoP,  and participants of the PULSAR IPSAS Training of Trainer Courses (ToT) held earlier in Vienna, Sarajevo, Tirana, and Batumi. In addition, other interested stakeholders also attended the event e.g. from education institutions.

The COVID-19 pandemic presents one of the largest challenges to governments seen in the current century. As a result of the unprecedented fiscal interventions being deployed by governments worldwide, the effects of the pandemic will be felt on government finances both immediately and in the long-term.

The Workshop hosted virtually about 180 participants from 32 countries.

Execution of core government functions and public sector service delivery crucially relies on the availability of effectively managed public sector assets. A well-informed and evidence-based management of financial and non-financial assets is crucial for governments and citizens. In this regard, Public Sector Accounting (PSA) reforms create fruitful conditions for an efficient use of public sector resources and therefore are an important prerequisite for sound public sector fixed asset management.

The Workshop hosted virtually about 60 participants from about 11 countries.

The implementation of accrual accounting is a long-term project in the public sector, and clarity of direction is important. None of the countries deciding to initiate PSA reform have the same starting point, capabilities, and DRIVERS. It is important to acknowledge this fact in setting country’s reform objectives and paths.

The Workshop hosted virtually about 135 participants from 34 countries.

Governments are entrusted to manage public resources and deliver a wide range of public services in a sound, cost-effective, and sustainable manner. However, many countries still face significant challenges in the quality of financial reporting, including its consistency and comparability.

Accrual accounting reporting, which means recording the economic substance of transactions when they occur regardless of the occurrence of their respective cash settlement, is fundamental to good decision making, transparency and accountability.

The PULSE aims to support national and subnational governments in developing efficient and effective PSA systems. To achieve that goal, it is essential for governments to have a comprehensive understanding of the status of their PSA system and the associated public sector environment.