Acta Univ. Agric. Silvic. Mendelianae Brun. 2013, 61(7), 2593-2602 | DOI: 10.11118/actaun201361072593

Transformation process of state accounting to accrual basis accounting in conditions of the Czech Republic

Milana Otrusinová, Eliška Pastuszková
Tomas Bata University in Zlín, Faculty of Management and Economics, Department of Finance and Accounting, Mostní 5139, 760 01 Zlín, Czech Republic

This paper briefly outlines the significant issues that occur during the implementation of the accrual principle accounting in the public sector in the context of the reform of accounting of public finance in the Czech Republic. The reform mostly regards government organizational units, self-governing territorial units and allowance organizations. The objective of the paper is to describe the transformation process from state accounting to accrual principle accounting in the Czech Republic and to identify the main problems associated with the introduction of accrual principle. Authors summarize these key problems with the use of questionnaire survey results at the municipal level in the Czech Republic. According to the research presented in this paper, the ongoing reform has not provided the intended transparency of accounting in selected entities and these tend to have an impression of their efforts being wasted by doing unnecessary work. Drawing on the above facts, approaches to the public finance accounting reform by central authorities and municipalities are different. However, we can say that the reform was launched to improve the situation of users of financial statements and had been needed for many years because public sector accounting regulations were incomplete and non-uniform.

Keywords: Reform of public sector accounting, municipality, International Public Sector Accounting Standards, cash base, selected entities, consolidation, accrual accounting
Grants and funding:

The authors are thankful to the Operational Programme Education for Competitiveness co-funded by the European Social Fund (ESF) and national budget of the Czech Republic for the grant No. CZ.1.07/2.3.00/20.0147 - "Human Resources Development in the field of Measurement and Management of Companies, Clusters and Regions Performance", which provided financial support for this research. This article has been elaborated also as one of the outcomes of research project IGA/FaME/2012/028.

Received: August 25, 2013; Published: December 24, 2013  Show citation

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Otrusinová, M., & Pastuszková, E. (2013). Transformation process of state accounting to accrual basis accounting in conditions of the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(7), 2593-2602. doi: 10.11118/actaun201361072593
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