This presentation by Ken Warren was made at the 14th Annual OECD Public Sector Accruals Symposium, Paris 3-4 March 2014. Find out more at http://www.oecd.org/gov/budgeting/14thannualoecdpublicsectoraccrualssymposiumparis3-4march2014.htm

1. TIME TO LOOK AGAIN AT
ACCRUAL BUDGETING
Ken Warren
Chief Accounting Advisor
New Zealand Treasury
© The Treasury

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4. Designed for decision-making
• Generally Accepted Accounting Principles
(GAAP)
•
Principles for the faithful representation of
financial results for accountability purposes and
to provide relevant information for decisionmaking purposes.
© The Treasury

5. Arguments to use GAAP in budgets:
•
•
•
•
More consistency
Greater relevance
Better accountability
Greater Coverage
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6. Arguments Against
Too complex
BUT no worse than cash
Overloads budgeting
BUT can simplify
Doesn’t fit with rules
BUT and rule for surplus/deficit
Puts cash control at risk
BUT strengthens cash control
Integration with appropriations
BUT variety of appropriation approaches
Requires depreciation funding
BUT it allows doesn’t require that
More prone to manipulation
BUT there are standards
More pressing problems
BUT foundational issue
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7. Years of experience suggests it
works
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17. TIME TO LOOK AGAIN AT
ACCRUAL BUDGETING
Ken Warren
Chief Accounting Advisor
New Zealand Treasury
© The Treasury