Public Finance Quarterly Archive Articles

Experiences Concerning Transition to Accrual Accounting in the Public Sector from the Perspective of Supreme Audit Institutions

10:15, június 10, 2018.

József Simon
PhD, Associate Professor,
Eötvös József College,
Audit Manager, State Audit Office of Hungary

Tamás Fejszák
Senior Auditor Counsellor,
State Audit Office of Hungary

Bernhard Schatz
Mag., Senior Accrual Accounting Expert,
Austrian Court of Auditors,
Member of the International Public Sector Accounting Standards Board (IPSASB)

Toma Donchev
Chief Assistant, University of National and World Economy, Sofia, Bulgaria,
Director, Audit Activity Development Directorate,
Bulgarian National Audit Office, Sofia, Bulgaria

Miroslav Ivanov
PhD student,
University of Zaragoza, Zaragoza, Spain,
Auditor, Bulgarian National Audit Office,
Audit Activity Development Directorate, Sofia, Bulgaria

Published in: Public Finance Quarterly 2018/2. (p. 139-154.)

Summary: Nowadays the quality of budget management and the availability of reliable budget information are becoming increasingly important. A key area of these changes is the continuous development of public accounting, including the application of accrual accounting. The characteristics of development in public accounting vary by country since EU member states have different public finance systems. The process is constantly monitored by the supreme audit institutions, including the State Audit Office of Hungary. The article presents the most important areas of change in public accounting, especially the role of standards. In addition, the purpose of the article is to give a detailed description of how the public accounting system in two countries developed, highlighting the aspects of supreme audit institutions. The experiences and the perspective of supreme audit institutions regarding the issue are presented through the examples of the countries. Finally, the aim of the article is to give an overview of the main changes in the Hungarian public accounting system, also from the point of view of the supreme audit institution.

Keywords: accrual accounting, public sector accounting, public sector audits, IPSAS, audit office,

JEL-codes: H83, M41, M42, M48

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