http://pwc.to/13zcNvl
Face au contexte de crise économique dans les pays industrialisés et à la nécessité d’accompagner le développement économique des pays émergents, la maîtrise des dépenses et des recettes publiques devient un enjeu majeur pour les Etats partout dans le monde. L’accès au financement (et la compétition entre pays) est au cœur de l’actualité. Pour répondre à ces évolutions, les gouvernements prennent de plus en plus de mesures pour améliorer la comptabilité de l’Etat et renforcer son niveau de transparence.
Do Regional Finance Accountability And Budgetary Composition Enhance Regional...inventionjournals
Accountability is pivotal factor in the implementation of successful good governance since accountability is an indicator whether public fund is spent properly or not. Another relevant factor is budgetary composition more particularly local tax revenue and capital expenditure due to their correlation with public service. Empirical evidence showed that regional finance accountability affected regional economic performance measured using the Supreme Audit Board opinion and the amount of saved fund had negative and significant influence towards Gross Regional Domestic Product. On the other hand, budgetary surplus had positive and significant influence towards the Gross Regional Domestic Product. Budgetary composition and regional expenditure improved regional economic performance measured using local tax revenue and capital expenditure that have positive and significant influence towards Gross Regional Domestic Product.
The four dimensions of public financial managementicgfmconference
In two relatively short articles, Michael Parry first proposes a definition of the modified cash basis of accounting and then describes the four dimensions of public financial management. We welcome this approach of relatively short articles addressing key issues in governmental financial management and would encourage other authors to follow Michael’s example in future issues.
Do Regional Finance Accountability And Budgetary Composition Enhance Regional...inventionjournals
Accountability is pivotal factor in the implementation of successful good governance since accountability is an indicator whether public fund is spent properly or not. Another relevant factor is budgetary composition more particularly local tax revenue and capital expenditure due to their correlation with public service. Empirical evidence showed that regional finance accountability affected regional economic performance measured using the Supreme Audit Board opinion and the amount of saved fund had negative and significant influence towards Gross Regional Domestic Product. On the other hand, budgetary surplus had positive and significant influence towards the Gross Regional Domestic Product. Budgetary composition and regional expenditure improved regional economic performance measured using local tax revenue and capital expenditure that have positive and significant influence towards Gross Regional Domestic Product.
The four dimensions of public financial managementicgfmconference
In two relatively short articles, Michael Parry first proposes a definition of the modified cash basis of accounting and then describes the four dimensions of public financial management. We welcome this approach of relatively short articles addressing key issues in governmental financial management and would encourage other authors to follow Michael’s example in future issues.
Financial Statements are structured reports regarding the financial position and transactions carried
out by a reporting entity. The general objective of financial statements is to provide information about the
financial position, budget realization, cash flows, and financial performance of a reporting entity, which is
helpful for users in making and evaluating decisions regarding resource allocation
Business persons frantically try to draw attention of administration on their issues through different lobby and express their "mixed reactions" after announcement of budget proposal. The budget is always un-predictable. It should be citizen friendly and frame on the basis of declared policy and recommendation of the stakeholders. Government and Parliament must take note of discussion on pre and post budget discussion in different media and forums. The law makers should go for public hearing on budget before and after presented to the Parliament.
Recommendation of the OECD Council on Effective Public Investment Across Leve...OECD Governance
This document presents the Recommendation on Effective Public Investment Across Levels of Government that was adopted by the OECD Council on March 12, 2014.
A Recommendation is an OECD instrument approved by the Council that results in international norms and standards, best practices and policy guidelines. Recommendations are not legally binding, but practice accords them great moral force as representing the political will of Member states.
The Recommendation was developed by the OECD Territorial Development Policy Committee (TDPC). It was submitted to an extensive consultation procedure within the OECD and externally, and was supported by Ministers at the TDPC Ministerial meeting on 5-6 December 2013 in Marseille.
The purpose of the principles set out in the Recommendation is to help governments at all levels to assess the strengths and weaknesses of their public investment capacity, a critical shared responsibility across levels of government, and set priorities for improvement. The OECD will further work towards the implementation of these Principles by developing a supporting Toolkit to guide policy-makers and practitioners.
For more information, please visit our website at: www.oecd.org/regional-policy or contact: TDPCprinciples@oecd.org
Akinwunmi Ambode discusses the progress of Nigeria Finance Reforms.
Excerpt from the lecture delivered at the retreat of the Forum of Accountants-General in Nigeria, Victoria Island, Lagos.
The federal budget is a measure of the overall scope and magnitude of federal activities that involve the spending or collection of money. The net costs of those activities are shown in the budget mostly on a cash basis, but some transactions are recorded by means of accrual accounting. This presentation discusses the advantages and disadvantages of cash and accrual measures when accounting for various federal insurance programs and federal retirement programs.
The paper outlines the probable fiscal consequences of the accession process for the candidate countries and presents specific, fiscally sensitive aspects of acquis communautaire adoption. Apart from membership contribution fees, enlargement-related expenditures, never financed from the budget before, may additionally influence a public expenditure increase and a further deterioration of fiscal deficit to a level exceeding current values. To estimate the future net fiscal positions of acceding countries, the paper calculates the net financial position of each acceding country as a net gain from the negotiated EU transfers. The net financial position illustrates the net effect of the transfer flow to a given acceding country (including the government sector and other beneficiaries of the EU assistance) and from that country into the EU budget. The net fiscal position represents the net effect of accession on the government sector with the consideration of EU transfer flows to that sector, accession-related expenditures from the budget, as well as the positive fiscal effects of accession. The paper discusses the crucial issue in assessing the net fiscal position in the AC-10, namely the fact that negotiated transfers barely cover the latest and major budget obligations.
Authored by: Malgorzata Antczak
Published in 2003
Principles for effective public investment across levels of governmentOECD Governance
Presentation on Principles for Effective Public Investment Across Levels of Government made at the conference "New funding models for local governments: how to effectively mobilize resources?" held in Paris France, 3-4 July 2014.
Presentation made by Claire Charbit, Deputy Head, Regional Development Policy Division. For more information please see www.oecd.org/gov/regional-policy/recommendation-effective-public-investment-across-levels-of-government.htm.
The Balkan Barometer, published for the first time in 2015, surveys 7,000 citizens and 1,400 businesses in Albania, Bosnia and Herzegovina, Croatia, Kosovo*, Montenegro, Serbia and The Former Yugoslav Republic of Macedonia, on a wide range of issues dealing with the political, socio-economic, business and investment climate, infrastructure, rule of law and other developments in the region.
De Facto Consultancy conducted survey in Montenegro.
Financial Statements are structured reports regarding the financial position and transactions carried
out by a reporting entity. The general objective of financial statements is to provide information about the
financial position, budget realization, cash flows, and financial performance of a reporting entity, which is
helpful for users in making and evaluating decisions regarding resource allocation
Business persons frantically try to draw attention of administration on their issues through different lobby and express their "mixed reactions" after announcement of budget proposal. The budget is always un-predictable. It should be citizen friendly and frame on the basis of declared policy and recommendation of the stakeholders. Government and Parliament must take note of discussion on pre and post budget discussion in different media and forums. The law makers should go for public hearing on budget before and after presented to the Parliament.
Recommendation of the OECD Council on Effective Public Investment Across Leve...OECD Governance
This document presents the Recommendation on Effective Public Investment Across Levels of Government that was adopted by the OECD Council on March 12, 2014.
A Recommendation is an OECD instrument approved by the Council that results in international norms and standards, best practices and policy guidelines. Recommendations are not legally binding, but practice accords them great moral force as representing the political will of Member states.
The Recommendation was developed by the OECD Territorial Development Policy Committee (TDPC). It was submitted to an extensive consultation procedure within the OECD and externally, and was supported by Ministers at the TDPC Ministerial meeting on 5-6 December 2013 in Marseille.
The purpose of the principles set out in the Recommendation is to help governments at all levels to assess the strengths and weaknesses of their public investment capacity, a critical shared responsibility across levels of government, and set priorities for improvement. The OECD will further work towards the implementation of these Principles by developing a supporting Toolkit to guide policy-makers and practitioners.
For more information, please visit our website at: www.oecd.org/regional-policy or contact: TDPCprinciples@oecd.org
Akinwunmi Ambode discusses the progress of Nigeria Finance Reforms.
Excerpt from the lecture delivered at the retreat of the Forum of Accountants-General in Nigeria, Victoria Island, Lagos.
The federal budget is a measure of the overall scope and magnitude of federal activities that involve the spending or collection of money. The net costs of those activities are shown in the budget mostly on a cash basis, but some transactions are recorded by means of accrual accounting. This presentation discusses the advantages and disadvantages of cash and accrual measures when accounting for various federal insurance programs and federal retirement programs.
The paper outlines the probable fiscal consequences of the accession process for the candidate countries and presents specific, fiscally sensitive aspects of acquis communautaire adoption. Apart from membership contribution fees, enlargement-related expenditures, never financed from the budget before, may additionally influence a public expenditure increase and a further deterioration of fiscal deficit to a level exceeding current values. To estimate the future net fiscal positions of acceding countries, the paper calculates the net financial position of each acceding country as a net gain from the negotiated EU transfers. The net financial position illustrates the net effect of the transfer flow to a given acceding country (including the government sector and other beneficiaries of the EU assistance) and from that country into the EU budget. The net fiscal position represents the net effect of accession on the government sector with the consideration of EU transfer flows to that sector, accession-related expenditures from the budget, as well as the positive fiscal effects of accession. The paper discusses the crucial issue in assessing the net fiscal position in the AC-10, namely the fact that negotiated transfers barely cover the latest and major budget obligations.
Authored by: Malgorzata Antczak
Published in 2003
Principles for effective public investment across levels of governmentOECD Governance
Presentation on Principles for Effective Public Investment Across Levels of Government made at the conference "New funding models for local governments: how to effectively mobilize resources?" held in Paris France, 3-4 July 2014.
Presentation made by Claire Charbit, Deputy Head, Regional Development Policy Division. For more information please see www.oecd.org/gov/regional-policy/recommendation-effective-public-investment-across-levels-of-government.htm.
The Balkan Barometer, published for the first time in 2015, surveys 7,000 citizens and 1,400 businesses in Albania, Bosnia and Herzegovina, Croatia, Kosovo*, Montenegro, Serbia and The Former Yugoslav Republic of Macedonia, on a wide range of issues dealing with the political, socio-economic, business and investment climate, infrastructure, rule of law and other developments in the region.
De Facto Consultancy conducted survey in Montenegro.
Framework For Evaluating Internal Controls Over Financial Reporting In Sovere...icgfmconference
Framework for Evaluating Internal Controls over Financial Reporting in Sovereign Governments This paper develops a proposed framework for evaluating government financial reporting systems. It is based on an international study of financial reporting and their associated internal controls. The framework provides a generic model for evaluating internal controls over financial reporting at three different levels. Sovereign governments publish their financial statements which have far reaching implications. The size and scale of economic activity of sovereign governments means that their financial reports are more susceptible to errors. Their significance has also increased with globalization. The challenge is greater than for private sector accounting because of the lack in uniformity in government accounting. In contrast, most private enterprises produce accounts based on commercial principles and a double entry accounting system. Government accounting ranges from modified cash based systems in most countries to full accrual accounting in New Zealand and a few other countries. We would welcome a debate over our proposed framework.
This presentation was made by Delphine Moretti, OECD Secretariat, at the 18th Annual Meeting of OECD Senior Financial Management and Reporting Officials held at the OECD Conference Centre, Paris, on 1-2 March 2018
Government accounting and financial reporting in Latin America: The state of ...OECD Governance
This presentation was made by Victoria Renée Narvaez Alonso, Chile & Svetlana Klimenko, World Bank, at the 15th Annual OECD Public Sector Accruals Symposium held in Paris on 26-27 February 2015.
OECD Public Sector Accruals Symposium - Sandra Kaiser and Bernhard SchatzOECD Governance
This presentation by Sandra Kaiser and Bernhard Schatz 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
UK government is in the middle of a decade-long recalibration as the public sector aligns to a lower level of public spending. While the first half of this decade has been characterised by austerity and cost reduction, the next half should focus on aspiration and redesign as public sector leaders across the UK shape a more focused state.
Creative Accounting Dynamics and Financial Reporting Quality in Public Corpor...YogeshIJTSRD
The public corporations are pivotal institutions that are vehicle used by the government to lubricate an economy and engender development. As government owned entity, their activity stimulates the economy of any nation. This paper examines financial statement to investigate the extent to which creative accounting issues in such financial reports had influenced the quality of such report in the public corporations in Nigeria. The study used secondary data from ten selected public corporate entities’ annual reports to rate the influence of creative accounting manipulations or otherwise on factors that influences financial reporting quality. A deductive approach using descriptive survey and inferential statistics were used to reach general conclusions based on the results from the findings. The result shows that application of standards allows for accounting preparer to use discretions given room to either positive or negative impact on financial reporting quality. The study noted that in Nigeria, the annual reports most times show positive growth while the economic reality signs show otherwise. Manipulative behaviours in financial reports in public corporations in Nigeria promotes corruption, destroys the image of the nation, public loss of confidence and negative growth trend. Otse Amos Egwurube "Creative Accounting Dynamics and Financial Reporting Quality in Public Corporations in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38651.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/38651/creative-accounting-dynamics-and-financial-reporting-quality-in-public-corporations-in-nigeria/otse-amos-egwurube
Relationship between Financial Reporting Reforms and Performance of Selected ...Dr. Amarjeet Singh
Over the past few decades, the world has witnessed
spectacular transformations of public financial management
systems. Kenya transformed its financial reporting system
with a view of enhancing credibility of its financial reports.
The objective of the study was to examine the relationship
between financial reporting reforms and the performance of
selected County Governments in Kenya. The study was guided
by descriptive research design and the target population was
184 treasury staff from Bomet, Kericho, Nakuru and Narok
County Governments. Census sampling technique was
employed in selecting the respondents to the study. Data were
collected using semi-structured, self-administered
questionnaires. Data was analyzed using descriptive and
inferential statistics. The findings revealed that financial
reporting reforms showed statistically significant correlation
(r=0.673) with the performance of selected County
Governments in Kenya. It was recommended that adoption of
IPSAS in financial reporting should be strengthened to ensure
optimal performance of the county governments.
Speech by Avdullah Hoti, Minister of finance, Kosovo, made at the regional conference on Public Administration Reform Challenges in Western Balkan Countries held at the OECD in Paris, 4 December 2015.
Background note - Mini Survey on Supreme Audit Institutions and Performance-R...OECD Governance
background note for the 10th annual meeting of the Senior Budget Officials Performance and Results Network held on 24-25 November 2014. Find more information at http://www.oecd.org/gov/budgeting
Similar to Etude PwC sur les pratiques comptables des Etats (2013) (20)
Etude PwC "20ème édition de la CEO Survey" - Janvier 2017PwC France
Quelles sont les préoccupations des dirigeants en 2017 ?
Cette année, plus de 1300 dirigeants du monde entier ont témoigné de leur confiance en l’avenir, leur priorités stratégiques.
Recherche de talents et des futurs leaders de demain, stratégies de développement, poids de la technologie et son impact sur la confiance en l’entreprise, dynamiques opposées de mondialisation et de nationalismes impactent le quotidien des dirigeants. Quel regard portent-ils sur leur environnement ?
http://pwc.to/2k0a12Q
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For the last two decades, PwC has asked business leaders everywhere about the trends reshaping business and society. As we mark the 20th year of our annual CEO survey, we’ve observed just how much the world has changed.
Le cabinet d’audit et de conseil PwC a mené son étude « Carbon Factor » auprès des 20 principaux producteurs d’électricité européens pour la 14ème année consécutive.
Le facteur carbone (exprimé en kg CO2/MWh) se définit comme le rapport entre les émissions de CO2 générées et la production d’électricité correspondante. En 2014, il s’établit à 313 kg CO2/MWh, soit une baisse de 5,8% par rapport à 2013, pour atteindre son plus faible niveau depuis 2001.
Etude PwC : La transition énergétique pour la croissance verte (nov 2015)PwC France
Quels sont les impacts attendus et les tendances du marché français de la Transition Energétique ?
La loi sur la transition énergétique fixe des objectifs ambitieux, définissant la trajectoire énergétique de la France à moyen et long terme
Etude PwC "Total Retail 2015" Sur quoi miser aujourd’hui pour réenchanter la ...PwC France
Dans sa 5ème étude mondiale sur les consommateurs connectés - menée dans 25 pays auprès de 22 600 web-acheteurs, le cabinet d’audit et de conseil PwC révèle que la France a recruté 17% de nouveaux web-acheteurs en 2015, un chiffre en hausse par rapport à 2014.
GEMO 2016 : un digital de plus en plus cannibale ?PwC France
Dans la 16ème édition de l’étude annuelle « Global Entertainment & Media Outlook », sur les perspectives de l’industrie des médias et des loisirs, PwC prévoit que le marché mondial va croître de 5,1 % en moyenne par an entre 2014 et 2019.
Cette étude, réalisée dans 54 pays, montre qu’avec 3,2% de croissance moyenne annuelle d’ici 2019, la France tire son épingle du jeu parmi les pays matures.
La publicité sur internet devrait y porter la croissance du secteur, et le numérique en général continue de bouleverser le business model de l’ensemble des segments, qu’il s’agisse de l’édition, de la musique, de la presse, des jeux vidéo ou bien encore de la télévision.
Infographie PwC GEMO 2016 sur l'industrie Médias et Loisirs (juin 2015)PwC France
Dans la 16ème édition de l’étude annuelle « Global Entertainment & Media Outlook », sur les perspectives de l’industrie des médias et des loisirs, PwC prévoit que le marché mondial va croître de 5,1 % en moyenne par an entre 2014 et 2019.
Cette étude, réalisée dans 54 pays, montre qu’avec 3,2% de croissance moyenne annuelle d’ici 2019, la France tire son épingle du jeu parmi les pays matures.
Etude PwC Low Carbon Economy Index (oct. 2015)PwC France
L'année 2014 a marqué un tournant en matière de réduction des émissions de carbone dans les économies du G20. C’est ce que révèle le cabinet d’audit et de conseil PwC dans la 7ème édition de son étude annuelle « Low carbon Economy index », qui modélise l'intensité carbone des grandes économies – à savoir les émissions des gaz à effet de serre liées à la consommation d'énergie par million de dollars de PIB. En effet, l'intensité carbone a chuté de 2,7% en 2014, soit sa plus forte baisse depuis 2000.
La France fait office d’exemple : elle a réduit son intensité carbone de plus de 9% en 2014, ce qui représente la 2ème plus forte réduction des pays du G20, juste derrière le Royaume-Uni (- 10,9%).
Etude FCD, ESSEC et PwC sur la distribution responsable (août 2015)PwC France
Les enseignes de la Fédération du Commerce et
de la Distribution (FCD) se mobilisent depuis de
nombreuses années en faveur du développement
durable. Elles mènent des actions volontaristes
pour réduire l’impact environnemental de leur
activité, mais aussi, conformément aux exigences
de la RSE, en matière de consommation
durable, de gestion responsable des ressources
humaines et d’engagement sociétal.
Les introductions en bourse européennes affichent une forte activité au 2e trimestre grâce aux spin-off,
mais entrent de plus en plus en concurrence avec les processus de ventes.
Etude PwC CEO Survey Talent "People Strategy for the Digital Age" (juillet 2015)PwC France
Dans son étude « People strategy for the digital age : A new take on talent » menée à l’échelle mondiale, le cabinet d’audit et de conseil PwC constate que, dans un contexte de concurrence mondiale accrue, les entreprises ont désormais besoin de compétences plus diversifiées pour rester compétitives : 73% des dirigeants voient la pénurie des compétences comme une menace sérieuse à la poursuite de leur activité (contre seulement 46% en 2009).
Une des réponses consiste à mettre en place une stratégie de diversification des talents. Pour aller plus loin, les entreprises doivent également se tourner vers l’exploitation et l’analyse des données qu’elles collectent.
Dans sa dernière étude « PwC Golden Age Index : how well are OECD economies adapting to an older workforce ? », le cabinet d’audit et de conseil PwC compare l’emploi des seniors (travailleurs âgés de plus de 55 ans) dans 34 pays de l’OCDE.
Etude PwC Global Economy Watch (juin 2015)PwC France
Dans leur dernière étude « Global Economy Watch », les économistes du cabinet d’audit et de conseil PwC ont analysé les performances économiques des cinq premiers pays d’Afrique du Nord – Egypte, Algérie, Maroc, Soudan et Tunisie, près de cinq ans après les débuts du « Printemps arabe » qui a entraîné de grands bouleversements dans toute la région. Cette étude révèle les défis et les opportunités qui attendent les entreprises et les dirigeants politiques en Afrique du Nord.
Etude PwC et Essec "Grande consommation 1985 - 2015 - 2045"PwC France
A l’occasion du 30ème anniversaire de la Chaire Grande Consommation de l’ESSEC, les experts du cabinet d’audit et de conseil PwC ont imaginé les grandes évolutions du secteur de la distribution et des biens de consommation au cours des trente prochaines années.
Etude PwC sur le Top 100 des entreprises les mieux valorisées au monde en 201...PwC France
La dernière étude du cabinet d’audit et de conseil PwC « Global Top 100 Companies by market capitalisation » révèle que plus de la moitié (53) des 100 entreprises les mieux valorisées au monde sont américaines, contre seulement 4 entreprises françaises. Apple reste en tête du classement établi par PwC, avec une capitalisation boursière de 725 milliards de dollars, en hausse de 54% (+256 milliards de dollars) par rapport à 2014.
Etude PwC "Bridging the gap" sur les investisseurs institutionnels (mai 2015)PwC France
Selon la dernière étude du cabinet d’audit et de conseil PwC, intitulée « Bridging the gap », sept investisseurs institutionnels sur dix (70 %) – parmi les 60 qui ont été interrogés par PwC au plan mondial – affirment qu’ils refuseraient de participer à une levée de fonds de private equity ou à un co-investissement si ceux-ci présentaient un risque environnemental, social ou de gouvernance.
Méthodologie :
Pour réaliser cette étude, PwC a mené des entretiens individuels avec 60 commanditaires de 14 pays, totalisant quelque 500 milliards USD d’allocation aux gérants ou general partners (GP) de fonds de private equity. Les participants à l’enquête ont répondu sur la base du volontariat, d’où une surreprésentation probable des investisseurs relativement avancés dans leur approche de l’investissement responsable. Le panel était composé à 30 % de fonds de pension, à 20 % de gestionnaires d’actifs et à 7 % de fonds souverains ou publics. Parmi les répondants figuraient de grands fonds de pension du monde entier, comme le CalSTRS (caisse de retraite de l’enseignement public de Californie), l’USS (caisse de retraite de l’enseignement supérieur britannique), la caisse de retraite de BT, le West Midlands Pension Fund, le Wellcome Trust, un fonds de pension suédois et des fonds confessionnels aux États-Unis et en Finlande. Parmi les principaux gestionnaires d’actifs figuraient les sociétés Aberdeen, Hermes GPE, F&C et BlackRock. 7 investisseurs français ont aussi participé à cette étude comme par exemple BPI France, Ardian ou OFI Asset Management (devenu depuis SWEN Capital Partners).
Etude PwC, AFDEL et SNJV sur "Les 100 digital"PwC France
PwC, l’AFDEL et le SNJV dévoilent l’édition 2015 du GSL 100, classements des principales entreprises de l’édition de logiciels, des services Internet et du jeu vidéo français, dans le cadre de l’étude « Les 100 digital » qui décrypte les tendances et les progressions des entreprises de la French tech.
Etude PwC Global Economy Watch (mai 2015)PwC France
Selon la dernière étude « Global Economy Watch » du cabinet d’audit et de conseil PwC, les créances libellées en dollars américains, émises hors des Etats-Unis, ont fortement augmenté au cours de ces dernières années, passant de 6 000 milliards de dollars avant l’instauration des premières mesures d’assouplissement quantitatif en novembre 2008 à environ 9 000 milliards en 2014.
Etude PwC sur l'économie collaborative (mai 2015)PwC France
En dix ans, le concept d'économie collaborative est devenu un véritable marché impliquant de nombreuses startups comme des grandes entreprises internationales. Alors que ce marché représente aujourd’hui 15 milliards de dollars, le cabinet d’audit et de conseil PwC estime qu’il atteindra 335 milliards de dollars d’ici à 2025.
Source
Les données relatives aux consommations collaboratives des Américains sont issues de l’étude « Consumer Intelligence Series: The Sharing Economy » publiée par PwC en avril 2015. Pour cette étude, 1 000 consommateurs américains, âgés de plus de 18 ans, ont été sondés en ligne entre les 17 et 22 décembre 2014.
Etude PwC sur l'intérêt des investisseurs pour l’Afrique (avril 2015)PwC France
L’intérêt des investisseurs pour l’Afrique continue de progresser, le continent étant perçu comme un marché à fort potentiel de croissance, susceptible d’offrir des opportunités de retour sur investissement très intéressantes. L’Afrique sub-saharienne s’affirme comme la région la plus attractive. En effet, le Ghana, le Nigéria et la Tanzanie forment le Top 3 des pays de choix pour les analystes et investisseurs que le cabinet d’audit et de conseil PwC a interrogés dans la 7ème édition de l’étude « Valuation methodology survey », qui inclut pour la première fois les réponses des investisseurs en Afrique francophone.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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Etude PwC sur les pratiques comptables des Etats (2013)
1. www.pwc.com
PwC Global survey on accounting
and reporting by central governments
Towards a new era in
government accounting
and reporting
April 2013
2. Contents
Creating a legacy 1
About the survey 2
Key findings from the survey 5
Part 1: Government accounting and financial reporting,
today and tomorrow ... The dynamic for accrual accounting 6
Part 2: Making the transition to accrual accounting
(IPSAS or equivalent), benefits and challenges 18
Part 3: The future of the government finance function 30
List of survey respondents 38
Let’s talk 40
3. 1PwC Global survey on accounting and financial reporting by central governments
As a result of the global financial crisis
and the subsequent sovereign debt
crisis, governments and other public
sector entities around the world,
notably those in OECD countries, are
having to cope with substantial
pressure due to restricted budgets,
significant debts and stagnant
economies. At the same time, Asian,
South American and African
economies are growing at rapid rates,
increasing the demand for public
goods and services and infrastructure
investments.
This context creates a direct challenge
to governments to improve
management of resources and report
high-quality information to their
stakeholders (citizens and parliament,
donors, investors and financial
markets, etc.).
While sound and transparent public
accounting does not in itself lead to
high-quality public financial
management (PFM), it is a necessary
component. Better accounting leads to
better reporting, which provides the
information necessary for better
decision-making, which in turn
should lead to better use of public
resources. Public sector entities and
their stakeholders need to understand
the full, long-term economic impact of
their decisions on financial
performance, financial position and
cash flows.
Creating a legacy
Cash accounting systems fail to
capture information on public sector
assets and liabilities and present a
very short-term view of public
finances in primary financial reports.
Weak financial reporting practices
may present the illusion of positive
financial results in the short term, at
the expense of longer-term fiscal
stability.
By introducing accrual accounting,
governments demonstrate their desire
to achieve greater transparency and
accountability, and also to produce
better information for decision-
making.
Applying financial reporting
standards such as the International
Public Sector Accounting Standards
(IPSAS) or similar standards further
improves the quality of financial
information and facilitates
comparison across governments and
organisations.
The full benefits of implementing
accrual accounting can be captured as
part of a wider finance reform,
serving as a catalyst to provide
high-quality financial information
thus, and even more importantly,
improving operational and service
performance and contributing to the
long-term sustainability of public
finances.
“When we talk about government
accounting and public financial
management, it all comes down to
one question: do we create or do
we consume a legacy for the next
generation?”
Jan Sturesson, PwC Global leader
Government and Public Services
“To state the facts frankly is not to
despair the future nor indict the
past. The prudent heir takes
careful inventory of his legacies
and gives a faithful accounting to
those whom he owes an obligation
of trust.”
John Fitzgerald Kennedy
Jan Sturesson
Global leader Government
& Public Services
Jean-Louis Rouvet
Global Public Finance
& Accounting leader
Patrice Schumesch
Global Public Finance
& Accounting Partner
Jean-Philippe Duval
Global Public Finance
& Accounting Partner
4. 2 PwC Global survey on accounting and financial reporting by central governments
About the survey
The PwC global survey analyses
key aspects of government
accounting and financial reporting
in terms of three themes.
1 Government accounting and
financial reporting, today
and tomorrow. The dynamic for
accrual accounting.
To establish a baseline understanding
of current government accounting
and reporting rules, as well as
budgetary and auditing practices, and
show the trends in terms of reform
initiatives that are currently in
progress around the world.
2 Making the transition to
accrual accounting: benefits
and challenges.
To understand the impact on
governments of the transition, or
possible transition, to accrual
accounting standards based on IPSAS
or equivalent and learn more about
the resulting benefits and challenges.
3 The future of the government
finance function.
To put government accounting in the
context of the wider finance function
and evaluate governments’
performance in various aspects of
financial management, and get insight
into how governments envision
moving this forward.
Survey methodology
140 countries were targeted to
participate in the PwC global survey
covering all geographic regions and
levels of development. The survey
focused exclusively on central
governments and did not take into
consideration the accounting and
financial reporting practices of local
governments.
Survey data was collected over a
12-month period ending in March
2013, via interviews conducted
in-person and by telephone, or via an
online survey questionnaire. Data was
then compiled and carefully analysed
by our public finance and accounting
experts. The results presented are
based on individual country
responses, which reflect the best
judgement of survey respondents as to
the current situation and expected
future trends in the countries
concerned.
5. 3PwC Global survey on accounting and financial reporting by central governments
In total, 100 countries are included in
the results of the PwC global survey.
Responses were received directly
from 75 central governments,
including 15 countries in the Asia-
Pacific Region, which were gathered
with the assistance of the Asian
Development Bank. All survey
responses have been kept strictly
confidential, except where explicit
permission has been given by the
respondent.
Desk research was performed by PwC
experts covering an additional 25
countries.
The 100 countries included in our
survey provide a good basis to gauge
the government accounting landscape
around the globe. The survey
coverage provides a balanced view in
terms of both its geographical
coverage and its inclusion of countries
across the development spectrum,
from emerging economies to G20
nations. A full list of the countries
included in the PwC global survey, as
well as a breakdown by continent and
level of development (using OECD
membership as a proxy) are provided
at the end of the report.
The PwC global survey does not serve
any scientific purpose, but rather
seeks to highlight current practices
and expected trends as identified by
practitioners in the field of
government finance and accounting
from around the world. The survey
results offer insight into practices and
perceptions of government accounting
for those interested in the public
accounting debate.
PwC’s global conference on
accounting and financial
reporting by central
governments
Preliminary highlights of the PwC
global survey were presented at a
conference organised in Brussels on
17 and 18 December 2012. The
conference was attended by over 200
delegates from 43 countries covering
all continents and regions.
Keynote speakers were invited to talk
about the topics covered by our
survey, exchange views and share
experience by means of presentations
and panel discussions.
This publication is enriched with
quotes from speakers and delegates
and other key findings conveyed at
the conference.
6. 4 PwC Global survey on accounting and financial reporting by central governments
7. 5PwC Global survey on accounting and financial reporting by central governments
Key findings from the survey
The top 10 key messages PwC insights
Government accounting and financial reporting, today and tomorrow ...
The dynamic for accrual accounting
There is great diversity in accounting practices
but the trend towards accrual accounting is clear
There is an urgent need for sound and transparent
accounting by all governments. Governments financial
statements should reflect the full economic impact of
political decisions
A major shift to accrual accounting is expected
in developing countries, with IPSAS serving as a
common reference point
Harmonisation of high-quality public sector accounting
standards on the international level enhance the credibility
of government financial statements and facilitates
comparison within the global public sector
Budgets remain largely on a cash basis Accrual budgeting provides better insight for decision-
making, considering the long-term impact of political
decisions
Making the transition to accrual accounting (IPSAS or equivalent), benefits and challenges
Conversion to IPSAS or similar accrual
accounting standards is useful for government
stakeholders
The full benefits of accrual accounting implementation based
on IPSAS or equivalent can only be captured as part of a
wider finance reform
Greater transparency and accountability,
comprehensive inventory of assets and liabilities,
and performance assessment are the main
benefits
Better accounting leads to better reporting, which provides
information for better decision-making, and in turn should
lead to better use of public resources
Accounting for fixed assets, application of
accruals concepts and disclosure requirements
are the major areas of impact
The change in accounting rules will impact the numbers,
require the production of new data and a cultural shift in the
mindset of those involved. The impact will be even greater if
consolidation and employee benefits are included
More than three years is required on average to
transition to accrual-based IPSAS (or similar)
The change to accruals-based IPSAS is much more than an
accounting exercise, it is a transformation of the government
finance function which impacts the whole organisation
The lack of trained staff and IT system
requirements are the main challenges
A well-designed project and effective change management
strategy, which considers people and systems requirements,
are crucial for successful implementation
The future of the government finance function
Governments indicate a desire to improve their
finance function
By transitioning from scorekeeper to business partner,
government finance functions will realise significant
improvements
Cost accounting, performance management, fixed
assets management and long-term planning and
forecasting are the key areas for improvement
Improving these key areas will contribute to the overall
objective of enhanced service performance and long-term
sustainability of public finances
1
2
3
4
5
6
7
8
9
10
8. 6 PwC Global survey on accounting and financial reporting by central governments
Government accounting and financial
reporting, today and tomorrow ...
The dynamic for accrual accounting
Part 1
9. 7PwC Global survey on accounting and financial reporting by central governments
There is great diversity in accounting
practices but the trend towards
accrual accounting is clear........................ 8
A major shift to accrual accounting
is expected in developing countries,
with IPSAS serving as a common
reference point........................................ 11
Budgets continue to be run largely
on a cash basis......................................... 17
Key finding
1
Key finding
2
Key finding
3
10. 8 PwC Global survey on accounting and financial reporting by central governments
There is an urgent need for sound,
transparent accounting by all governments.
Governments’ financial statements should
reflect the full economic impact of
political decisions.
PwC insight
1
There is great diversity in
accounting practices but
the trend towards accrual
accounting is clear.
Government accounting
around the world
Government accounting practices are
generally classified into four
categories, moving from the least to
the most sophisticated side of the
spectrum: cash accounting, modified
cash accounting, modified accrual
accounting, and accrual accounting.
There is great diversity in government
accounting practices worldwide.
Classification in one of the four
categories requires judgement and is
inevitably somewhat subjective.
Cash accounting has been the primary
method used in the public sector for
many years and remains in place for
many governments. However, an
increasing number of governments
are now using accrual-based
accounting frameworks, while others
still follow hybrid approaches that can
be classified as either modified cash
accounting or modified accrual
accounting. Over half (54%) of the
countries surveyed report that they
follow the cash or modified cash basis
of accounting, while only 46% follow
the accrual or modified accrual basis
(see Figure 2).
Figure 1: The spectrum of government accounting practices
Cash
accounting
Modified cash
accounting
Modified
accrual
accounting
Accrual
accounting
Cash payments and
receipts are
recorded as they
occur.
Cash receipts and
disbursements
committed in the
budget year are
recorded and
reported until a
specified period
after year-end.
Accrual accounting
is used but certain
classes of assets
(e.g. fixed assets)
or liabilities are not
recognised.
Transactions and
economic events
are recorded and
reported when they
occur, regardless of
when cash
transactions occur.
Figure 2: The government accounting landscape worldwide today
Cash basis (31)
Modified Cash (23)
Modified Accrual (20)
Accrual basis (26)
11. 9PwC Global survey on accounting and financial reporting by central governments
Looking at the picture five years
ahead, we can see a clear trend, with
many countries initiating accounting
reforms and moving to the more
sophisticated end of the government
accounting spectrum. Thirty-seven
countries express an intention to
move to accrual accounting over the
next five years, bringing the total
adoption rate to 63% of governments
surveyed (See Figure 3).
Figure 3: Government accounting around the world in five years
Cash basis (14)
Modified Cash (9)
Modified Accrual (14)
Accrual basis (63)
142%increase in the application
of accrual accounting over
the next five years.
12. 10 PwC Global survey on accounting and financial reporting by central governments
Getting the foundations right
The objectives of financial statements
are to provide information that is
useful to a wide range of users in
making and evaluating decisions
about the allocation of resources, and
to demonstrate the accountability of
the entity for the resources entrusted
to it.
These objectives can only be fully
achieved by applying accrual
accounting. Accrual accounts provide
a comprehensive view of a
government’s assets and liabilities,
and of its financial performance and
cash flows for the period under
review. Accrual accounting standards
reflect the long-term economic impact
of political decisions in the financial
statements.
Cash accounting systems simply do
not allow for this.
Governments need to step up and
provide information that delivers real
insight into public financial
management and decision-making.
This requires more robust accounting
systems in the public sector
worldwide, with reporting done on a
consistent basis, e.g. with application
of IPSAS or equivalent standards, and
full reporting of liabilities. This will in
turn assist long-term stability in
capital markets by increasing the
quality and reliability of, and trust in,
governments’ financial statements
and help restore confidence in their
ability to manage their fiscal balances.
“Cash accounting is simply not fit
for the 21st century.”
Brian Quinn, Director Loan Department,
World Bank
“Governments around the world
require private companies to be
transparent about their
accounting but governments
themselves are not transparent.
The reasons why governments
need to be transparent are very
similar to those of companies: we
need to know how well they are
performing, what their fiscal
position is, whether they are well
managed and we cannot tell it
without good accounting.”
Ian Ball, Chief Executive Officer,
International Federation of Accountants
“Investors are no longer confident
that what governments tell them
about their finances is complete
and accurate. Greater
transparency - not less - is what is
required now to increase
confidence of investors.”
Brian Quinn, Director Loan Department,
World Bank
“The State is the single largest
public interest entity in every
country. Just as the board of
directors of a private company is
accountable to shareholders,
governments should be
accountable to parliament and
citizens. And to do that you need to
be transparent and produce
accruals accounts based on the
highest-quality standards.”
Patrice Schumesch, PwC Partner
13. 11PwC Global survey on accounting and financial reporting by central governments
50%of non-OECD
countries plan to
transition to accrual
accounting over the
next five years.
Figure 4:
Expected trend toward accrual accounting among OECD and non-OECD countries
Now (26)
5 years (63)
0% 10% 20% 30% 40% 50% 60% 70% 80%
OECD (n=32)
Non OECD (n=68)
60%
10%
69%
59%
The momentum for
better public accounting
The momentum for better public
accounting is building, with more
jurisdictions around the world
adopting accrual accounting practices
or putting plans in place to do so.
The trend toward accrual accounting
is particularly evident in non-OECD
countries. Results from the survey
indicate that many developing
countries recognise the importance of
accrual-based accounts, with 34 of the
non-OECD countries surveyed
expressing their intention to move to
accrual accounting over the next five
years. Such a shift will bring the
overall adoption rate close to that
currently observed among OECD
countries, at 60% (see Figure 4).
Harmonisation of high-quality public
sector accounting standards at an
international level enhances
the credibility of government financial
statements and facilitates comparison
within the global public sector.
PwC insight
2
IPSAS often serves as a reference
point in the PFM reform programmes
of many developing countries.
International and supranational
organisations contribute to the
adoption of accrual accounting and
IPSAS by laying down reporting
requirements for their members or
funding recipients. International
organisations such as the World Bank
and the International Monetary Fund
(IMF), for example, often include
financial management reforms in
their financial assistance and capacity
development programmes. Their role
will be key in the implementation of
future government finance reforms.
“We are currently drawing a
roadmap for a PFM reform with
the IMF regional office. The IMF
assistance is also to align the
systems to move from cash to
accrual. They want to ensure that
our systems are strong enough.
The goal is to have an integrated
financial management
information system (FMIS). If we
build confidence in the system,
donors will be more willing to fund
us.”
Deputy Accountant General, East African
country
“There are number of PFM projects
funded by multilateral agencies
and donors. These came in a mix of
grants, loans and technical
assistance. Much of the donors’
activities are in the social sector
and all major donors like to have a
good PFM system in place.”
Non-OECD country, South Asia
A major shift to accrual
accounting is expected
in developing countries,
with IPSAS serving as a
common reference point.
14. 12 PwC Global survey on accounting and financial reporting by central governments
Biggest moves in Africa, Asia
and Latin America
The biggest move is expected in Africa
(+ 11 countries), but the trend toward
accrual accounting is also evident in
other parts of the world, with
accounting reforms in process or
planned in Asia, including the Middle
East (+ 10), and Latin America (+8)
(see Figure 5).
Figure 5: Expected trend toward accrual accounting by continent
100%
67%
35%
22%
31%
33%
21%
37%
62%
52%
0% 20% 40% 60% 80% 100%
North America (n=2)
Oceania (n=3)
Europe (n=34)
Asia (n=27)
Latin America & the Caribbean (=13)
Africa (n=21)
Now (26)
5 years (63)
In OECD countries, accrual
accounting is generally well
established and stable, with certain
exceptions noted at present.
Nevertheless, a further 10% of OECD
countries, currently following cash or
modified bases of accounting, indicate
that they expect to implement full
accrual accounting over the next five
years (see Figure 4).
“All Nigerian Government entities,
at Federal level and State levels,
including agencies, will move to
cash basis IPSAS by 31 December
2014, and to accrual basis IPSAS
by 31 December 2016.”
James Nongo, Secretary, Federation
Accounts Allocation Committee (FAAC),
sub-committee on the roadmap for the
adoption of IPSAS, Nigeria
“We have already achieved
compliance with the cash-basis
IPSAS. Reforms are now in
progress to adopt a full accrual
accounting system, and eventually
achieve compliance with accrual
IPSAS.”
Non-OECD Country, South East Asia
“The country is currently applying
accrual accounting and we are in
the process of converging to IPSAS,
with 2015 as target date.”
Patricio Barra Aeloiza, Head of Accounting
Analysis Division, Comptroller General
Department, Chile
In some cases, these rules are based
on the statistical reporting basis. In
Europe for example, government
finance statistics (GFS) provide the
basis for fiscal monitoring.
Governments must report under the
so-called ESA (European System of
Accounts) rules, a macroeconomic
accounting framework based on
accrual principles.
A number of countries have developed
their own public sector accounting
standards, based on national
standards or IFRS, adapting these
rules to the public sector environment
and seeking inspiration in IPSAS as
they deem appropriate.
In many countries, we see an
interesting trend whereby the move to
accrual accounting begins with an
intermediate objective of complying
with the cash-basis IPSAS as part of a
gradual, or step-by-step, approach to
adopting an accrual accounting
framework and, in many cases,
accrual IPSAS. These accounting
reforms are normally accompanied by
improvements in government FMIS.
15. 13PwC Global survey on accounting and financial reporting by central governments
The European context
In Europe, consideration has been
given to public sector accounting
standards in the context of the budget
surveillance mechanism and fiscal
monitoring. While the ESA rules are
not designed for entity-level
accounting, the European
Commission recognises the need for
uniform and comparable accrual-
based accounting practices for all
sectors of general government to
ensure the quality of the information
on which ESA data is based.
“There is a strong need for
harmonised accruals-based public
sector accounting systems in the
EU, in particular for the purposes
of fiscal surveillance, and notably,
the Maastricht Excessive Deficit
Procedure. The proposed way
forward is a balanced approach
that builds on existing
achievements and takes into
account the Member States’
resources constraints.”
Alexandre Makaronidis, Head of Unit, GFS
quality management and government
accounting, Eurostat
In this context, the Commission
(Eurostat) has just finalised its
assessment of the suitability of IPSAS
as a basis for financial reporting for
Member States and has forwarded the
assessment to the European Council
and European Parliament. Based on
the public consultation conducted by
Eurostat, there is wide acceptance of
the need for a set of harmonised
accrual-based public sector
accounting standards in Europe. The
report concludes that, even if IPSAS
cannot be implemented in European
Union (EU) Member States as it
currently stands, the IPSAS standards
represent an indisputable reference
for potential development of
European Public Sector Accounting
Standards (EPSAS), based on a strong
EU governance system.
The proposed way forward is a
three-stage process:
• a preparatory stage, that includes
public debates, to create the
necessary momentum and gain
co-ownership on the project to move
towards harmonised accrual
accounting principles within the EU,
• a development stage to put in place
the practical arrangements for the
new regulatory framework,
including synergies and cooperation
with the IPSASB,
• the implementation stage.
16. 14 PwC Global survey on accounting and financial reporting by central governments
Harmonisation of public sector
accounting standards at an
international level
Better integration and comparability
in government accounting systems are
still a challenge. With the increased
pressure on countries’ credit ratings,
protecting sovereign debt holders and
demonstrating government’s ability to
repay debts have been key concerns
for investor confidence in recent
years.
The G20 has recently emphasised the
need for transparent, comparable
public sector financial reporting,
including public sector balance sheets,
to better assess risks related to public
sector debt sustainability. Indeed,
sound, transparent accounting
systems are part of the solution to
restore confidence and contribute to
sustainable financial management.
“We are transitioning from
IFRS-like standards to IPSAS-like
standards in anticipation of
greater decision-usefulness and
transparency from applying
standards developed specifically
for public benefit entities with a
different set of users in mind ...
and enhanced comparability with
other governments applying IPSAS
or IPSAS-like standards.”
Fergus Welsh, Chief Financial Officer and
Chief Accountant, Treasury, New Zealand
“Harmonisation of GFS and IPSAS
is desirable. It is very hard for
governments to understand why
they have to adopt two different
reporting systems. There may be a
difference in the entity perimeter
but there should not be differences
in recognition and measurement
principles.”
Andreas Bergmann, Chair, IPSASB
Alongside the general trend towards
adopting accrual accounting, which is
generally inspired by IPSAS, and the
developments currently being
discussed at European Union level,
other initiatives aimed at increased
harmonisation can be noted.
In New Zealand for example, which
has been at the forefront of
government accounting
developments, having implemented
accrual accounts two decades ago, the
central government is now moving
from New Zealand IFRS for the public
sector to IPSAS.
Other developments are observed
towards an integrated approach to
accrual accounting and GFS
guidelines, aligning them to the
greatest extent possible to avoid
creating confusion by having two sets
of accrual-based financial statements
reporting different results for the
same reporting entity.
17. 15PwC Global survey on accounting and financial reporting by central governments
Timeliness and audit of
government financial
statements
The usefulness of financial statements
also depends on the timeliness of the
information provided to decision-
makers. Institutional structure and
processes must be in place to assess
the accuracy of government
representations and ensure the
quality of financial statements.
To remain relevant, both for external
accountability purposes as well as
internal decision-making, financial
information must be provided on a
timely basis.
Timeliness will depend upon the
procedures and systems in place to
collect, process and analyse the
necessary financial information.
Further, people must know how to use
the information once it has been
provided; knowledge gaps can result
in significant delays in preparing and
eventually auditing government
accounts.
Publishing annual financial
statements within six months of the
balance sheet date would seem to be
the minimum requirement in terms of
timeliness. Financial information that
is published later than this loses its
relevance as it becomes increasingly
out-of-date. 23% of governments do
not achieve this; 14% do not make
government accounts available to the
public (see Figure 6).
Figure 6: Publication of government financial statements
22% 41% 19%
4%
0-3 months 4-6 months 7-12 months 12+ months
14%
Not released
63%of governments publish
their financial statements
within six months of the
closing date, 37% do not.
These statistics should also be
interpreted in the light of current
reporting practices and bearing in
mind the relative simplicity of
cash-based financial reports currently
produced by many governments.
When these governments move to
accrual accounting, enhanced
processes and change management
programmes will be required to
ensure an efficient, timely closing
process.
18. 16 PwC Global survey on accounting and financial reporting by central governments
“There is in Belgium, at the level of
the Flemish region, a strong
political will to promote the
concept of single audit, with the
Court of auditors, working jointly
with the internal audit and
external auditors. It would be
interesting, next to introducing
accrual accounting and IPSAS, to
also have a strong independent
and external audit in the public
sector as promoted by the EU in the
context of the sovereign debt
crisis.”
David Szafran, Secretary General, Belgian
Institute of Registered Auditors
It is not rare that government
accounts are qualified, but little public
attention is given to these instances.
There is clearly no such tolerance for
publicly listed companies.
Despite this, auditors play an
important role in the overall quality of
public sector financial information.
Not only do audit reports add
credibility to financial statements, but
auditors’ pressure leads management
to seek continuous improvements in
the quality of the financial statements.
An independent audit report that is
based on internationally recognised
auditing standards and that is made
available to the public increases the
credibility of government financial
statements, and enhances
accountability and transparency.
90% of governments have their
accounts audited, which means that
10% have not. And 19% of governments
that do have their accounts audited
declare that they do not make the
auditor’s report publicly available.
The vast majority of government
accounts are audited by a government
audit service (e.g. Court of Auditors,
National Audit Office, or equivalent).
Only 4% of governments indicate that
audits are performed by a private sector
audit firm.
90%of governments have their
accounts audited... but
19% of them do not
make the auditor’s report
publicly available.
Figure 7:
Overview of government audit practices
86%
4%
10%
Yes - government audit service
Yes - private sector audit firm
No
19. 17PwC Global survey on accounting and financial reporting by central governments
89%of the countries
use cash budgets.
The budgetary cycle lies at the heart
of any public financial management
system, proceeding in stages from
budget formulation, approval and
execution, to audit and performance
assessment and evaluation.
While a move toward the accrual basis
is clear on the accounting side, there
seems to be less appetite for accrual
budgeting (see Figure 8). The
common reason given is that accrual
budgeting is viewed as too complex
and that politicians are unwilling to
change given their understanding of,
and familiarity with, cash budgeting
systems.
Accrual budgeting provides better insight
for decision-making, considering the
long-term impact of political decisions.
PwC insight
3
Cash budgets include only the current
period’s expected cash receipts and
payments; accrual budgeting provides
better insight for decision-making by
taking the long-term impact of
government policies into
consideration. The reasoning is
exactly the same as for accrual
accounting.
The ability to compare budgets
against actual results is also
important for accountability
purposes. Such comparisons are
difficult, however, when accounting
and budget documents are prepared
according to different financial
reporting bases (e.g. cash versus
accrual).
“The crisis has been the trigger for
budgeting reforms. We are
preparing to take use of an accrual
based budget starting from
2014-2015. Accrual-based budget
is essential to get better
information for decision making.”
Kadri Jõgiste and Juta Maar, respectively
Head of Budgeting Methodology Department
and Head of State Accounting Department,
Ministry of Finance, Estonia
“Accrual budgeting facilitates far
better decision making because it
brings more discipline to the
process and ensures that the full
economic impact of political
decisions are considered.”
Fergus Welsh, Chief Financial Officer and
Chief Accountant, Treasury, New Zealand
“Having a consistent system for
accounting and budgeting has
value. Why would you present your
results in a different way from
your budget? Of course you can
reconcile but being able to
compare is the most compelling
reason.”
Andreas Bergmann, IPSASB Chair
Budgets remain largely
on a cash basis.
Figure 8: Comparative trend toward accrual accounting and budgeting
5 years
Now
Accrual accounting
Accrual budgeting
0% 10% 20% 30% 40% 50% 60% 70% 80%
26%
11%
63%
26%
20. 18 PwC Global survey on accounting and financial reporting by central governments
Making the transition to accrual accounting
(IPSAS or equivalent), benefits and challenges
Part 2
21. 19PwC Global survey on accounting and financial reporting by central governments
Conversion to IPSAS or similar accrual
accounting standards is useful for
government stakeholders........................20
Key finding
4
Greater transparency and accountability,
comprehensive inventory of assets and
liabilities, and performance assessment
are the main benefits................................ 21
Key finding
5
Accounting for fixed assets, application
of accruals concepts and disclosure
requirements are the major
areas of impact........................................22
Key finding
6
More than three years is required on
average to transition to accrual-based
IPSAS (or similar)...................................24
Key finding
7
The lack of trained staff and IT system
requirements are the main challenges......... 26
Key finding
8
22. 20 PwC Global survey on accounting and financial reporting by central governments
Financial statement users include
both internal and external groups, all
of whom stand to benefit from
high-quality accrual-based financial
information.
Financial information should be
available to the citizens who, as
taxpayers and service recipients, hold
government accountable for the use of
public resources and seek to evaluate
overall financial performance, and
performance against policy
commitments and in specific interest
areas. Politicians also have a role to
play, representing the interests of the
citizens who elect them through the
parliamentary process. They need to
understand the current position of
government finances to understand
the government’s financial capacity
before making commitments for new
programmes and services.
Governing body officials may use
accrual accounting information to
manage their activities more
efficiently; further, they can use
measures of past performance as a
basis for future resource-allocation
decisions with a view to increasing
the effectiveness and impact of public
spending.
Investors and rating agencies have a
particular interest in assessing the
overall fiscal health of governments,
while donors are more broadly
concerned with the government’s
financial management practices and
ability to meet specified outcomes and
objectives.
Conversion to accrual-based IPSAS or
equivalent standards is considered to
be especially useful for citizens and
politicians, as indicated by 77% and
69% of respondents, respectively (see
Figure 9). However, it should be noted
that, beneath these aggregate results,
variance can be seen between
developed and developing countries,
with developing countries assigning
greater usefulness to fund donors and
less to citizens.
Government financial information is
used by a wide range of stakeholders,
all of whom have an interest in the
financial health and management of
public resources. Financial
information should be transparent in
order to effectively hold government
accountable for its use of public funds.
It should also provide a basis for
evaluating the current financial
position and past performance for
decision-making purposes.
The full benefits of implementing
accrual accounting based on IPSAS or
equivalent can only be captured as
part of a wider finance reform.
PwC insight
4
“The inclusion of a balance sheet
and the recording of transactions
on an accrual basis contribute to
the political debate on the
government’s fiscal and economic
management.”
First assistant, Ministry of Finance, OECD
country
“Donors may use the financial
statements and disclosures therein
to take informed decisions on
financing certain programmes and
projects.”
Geoffrey Malombe, Assistant Accountant
General, Kenya
Conversion to IPSAS or
similar accrual accounting
standards is useful for
government stakeholders.
Figure 9: Usefulness of accrual-based financial statements
77%
69%
50% 50% 49%
0%
20%
40%
60%
80%
100%
Citizens Politicians Governing body
officials
Fund donors Rating agencies
Percentage rated ‘very useful’ or ‘useful’ to government stakeholders.
Citizens are viewed as
the main beneficiaries
of accrual-based
financial statements.
23. 21PwC Global survey on accounting and financial reporting by central governments
Transparency and
accountability
Greater transparency and
accountability stands out as the greatest
benefit of adopting IPSAS or equivalent
standards. Information prepared in
accordance with internationally
recognised accounting standards
provides a basis for comparing
governments with one another and
making comparisons across individual
government units. Transparent
accrual-based financial statements help
government to demonstrate, and users
to evaluate, accountability for the use of
public funds.
Inventory of assets and
liabilities
A comprehensive inventory of
government assets and liabilities
provides a view of government
resources and future obligations.
Almost half of the governments
surveyed recognise the value of
adopting accrual accounting for better
management of government resources.
It provides a basis for building more-
effective administrative processes and
controlling costs. Equally, bringing
liabilities onto the government balance
sheet provides a view of the long-term
implications in terms of spending
commitments and borrowing needs.
Performance assessment
Overall, accrual accounting helps to
improve the measurement of a public
entity’s financial performance and
financial position and provides more
transparent information on
government sustainability.
In addition to the top five benefits
shown in figure 10, respondents
identified benefits in terms of access
to better funding sources and reduced
risk of fraud and corruption.
Developing countries can be seen to
place greater emphasis on these
benefits.
Better accounting leads to better reporting,
which provides information for better
decision-making, which should in
turn lead to better use of public resources.
PwC insight
5
“With adoption of accrual
accounting standards based on
IPSAS, the country will be able to
better project its cash flows,
evaluate and compare itself with
other countries”.
Gilvan Dantas, Accounting Subsecretary,
Ministry of Finance, Brazil
“For the first time, government
can prove whether the state
became poorer or richer over a
period of time!”
Gerhard Steger, Head of Budget Section,
Ministry of Finance, Austria
“Research has shown that more
transparent countries have better
credit ratings, better fiscal
discipline, and lower borrowing
costs.”
Brian Quinn, Director, World Bank
“Benefits brought by international
accrual accounting standards in
New Zealand include greater fiscal
transparency (with a particular
positive impact on debt rating),
greater fiscal debate, enhanced
credibility and clearer
understanding of real impacts of
political decisions (and reduced
potential of corruption).”
Fergus Welsh, Chief Financial Officer and
Chief Accountant, Treasury, New Zealand
Greater transparency
and accountability,
comprehensive inventory
of assets and liabilities, and
performance assessment
are the main benefits.
Figure 10: Benefits of accrual-based financial statements
0%
20%
40%
60%
80%
100%
79%
50% 48%
45%
41%
Transparency
and
accountability
Inventory of
assets
and liabilities
Performance
assessment
Comparability Cost control
Percentage ranked in top 3 benefits of adopting IPSAS or similar standards.
24. 22 PwC Global survey on accounting and financial reporting by central governments
One of the inevitable consequences
governments face in the adoption of
accrual accounting is the need to
produce an opening balance sheet and
put in place accounting policies to
track government assets and liabilities
on a go-forward basis. Governments
agree that moving to accrual
accounting has a major impact on the
financial accounts.
The change in accounting rules will impact
the numbers and require the production
of new data and a cultural shift in the
mindsets of those involved. The impact will
be even greater if consolidation
and employee benefits are included.
PwC insight
6
“The greatest challenge is data
collection for fixed assets which
involves 26 ministries. The task
includes identifying the assets and
valuing them.”
Accountant General, non-OECD country,
South East Asia
“The inventory and valuation of
military equipment has been
complex, with high-level issues at
stake. It was due to keeping
insufficient historical accounting
track of our assets and the
specificity of our assets. To
overcome these difficulties, we had
to develop a specific approach
based on a very precise analysis of
procurements expenditures.”
Véronique Nativelle, Ministry of Defence,
France
Accounting for fixed assets,
application of accruals
concepts and disclosure
requirements are the major
areas of impact.
Figure 11: Accounting impacts of accrual-based financial statements
66%
57%
39% 38% 36%
0%
20%
40%
60%
80%
100%
Fixed assets Application of
accruals
Disclosure
requirements
Consolidation
scope
Employee
benefits
Percentage ranked in top 3 impacts of adopting IPSAS or similar standards.
Fixed assets
Overall, recording fixed assets in
financial statements is seen as
presenting the greatest accounting
impacts. Accounting for fixed assets
includes not only traditional assets
such as government land and
buildings but also covers more
complex items such as infrastructure
assets (road networks, railway
infrastructure, airports or bridges,
etc.), military assets, and assets
managed under service concession
arrangements and public-private
partnerships.
Recording fixed assets in government
financial statements therefore has a
significant quantitative impact on
government financial statements, but
policies, processes and systems that
are needed to meet data requirements
and track assets-related information
on an ongoing basis are also heavily
impacted.
25. 23PwC Global survey on accounting and financial reporting by central governments
Application of accruals
57% of countries view the application
of accruals as one of the three most
significant impacts of adopting
accrual-based IPSAS or similar
standards. Applying accrual
accounting introduces more-complex
requirements for the treatment
financial statement items, especially
in respect of the year-end closure
process.
The treatment of government
expenses, for example, is impacted in
terms of both measurement and
timing for recognition in financial
statements. Expenses must be
recognised at the time the underlying
economic event occurs and will
include transactions for which cash
payments have not yet been made.
Increased effort will be required to
analyse a large volume of transactions
to determine the appropriate
accounting treatment.
The timing of revenue recognition
will also be impacted as governments
will need to match with the revenue-
generating activity and properly
reflect the terms and conditions of
grants and other cash payments
received.
Disclosure requirements
Disclosure requirements are identified
as one of the top three impacts for
39% of governments surveyed.
Indeed, the quantity of information
that must be disclosed under accrual-
basis IPSAS increases, including
segment information, reconciliations
between accounting and budget
information, information on
government financial assets and
liabilities (including guarantees),
pension and other employee benefits,
contingent liabilities, related parties,
etc.
Others
Fewer than 40% of survey
respondents ranked consolidation
scope and employee benefits in the
top three impacts of accrual
accounting. These items are often
omitted from the scope of the
government accounting framework,
but their complexity and impact
should not be underestimated. As
countries move toward full
compliance with IPSAS standards, the
impact of consolidation requirements
and recognition of employee benefits
will have a more pronounced impact.
PwC experience in
accounting for fixed assets:
implementing and
embedding
The effort and complexity of the
data-collection exercise should
not be underestimated. It is
important to involve ministries
and include accrual experts from
the very outset in order to create
capacity and build momentum.
The objectives should be set out
in a strategy document to present
a common vision for all involved.
The strategy should be clear and
achievable, considering the costs
and benefits of intended actions.
If it is important to secure quick
wins and rapid results and get
buy-in from ministries, as the first
months of data collection are
critical, it is also important to
spend sufficient time identifying
issues and data gaps.
Any fixed asset project should
also go beyond accrual
compliance to incorporate key
performance indicators that will
bring added value to
stakeholders. For example,
governments can use the
inventory of land and buildings to
move to more-active portfolio
management. It is also an
opportunity to simplify and
rationalise processes through, for
example, better supply chain
management. Similarly,
determining assets’ useful lives
and components can help to
improve programming and
budgeting decisions in terms of
maintenance, asset replacement
or investments.
26. 24 PwC Global survey on accounting and financial reporting by central governments
Most conversion projects take more
than three years of intensive work,
and extend beyond the accounting
department to include operational
staff and business owners. Transition
to accrual accounting concerns the
entire organisation, through system
changes, process reengineering, and
redefinition of roles and
responsibilities.
The conversion project does not end
with release of the first set of
government financial statements. It
requires that quality improvement be
managed in subsequent years and that
accrual practices and mindsets be
embedded as ‘business-as-usual’
throughout the organisation.
The change to accrual-based IPSAS is
much more than an accounting exercise;
it is a transformation of the government
finance function that impacts
the whole organisation.
PwC insight
7
“The transition to accrual
accounting is much more than an
accounting exercise; it is a
transformation of the finance
function. It requires a change of
mindset. Embedding the reform
after the preparation of the first
accrual-based financial
statements is crucial.”
Jean-Louis Rouvet, PwC Partner
“Time is of the essence. You have to
go fast, but not too fast. Accept
that the reform will take several
years and proceed in stages.”
David Litvan, Director of Accounting,
Ministry of Finance, France
More than three years
is required on average
to transition to accrual-
based IPSAS (or similar).
Figure 12:
Length of the conversion process
64%
24%
12%
Less than 2 years
2 to 3 years
More than 3 years
“The scope of accounting
modernisation project includes
accrual accounting, budgetary
accounting and management
accounting, using a uniform
software solution for all federal
public services. We have used a
gradual approach. Accounting for
fixed assets and tax revenue are
the last areas for which accrual
accounting concepts are
implemented.”
Ludo Goubert, Federal Accountant ad
interim, Belgium
“We started with initial awareness
trainings. Next step is a gap
analysis and the development of a
roadmap to continue the
transitioning towards IPSAS-
based standards in a modular or
phased approach.”
Herald Bonnici, Director-General Financial
Policy and Management Division, Ministry of
Finance, the Economy and Investment, Malta
“There is such a great need for
IPSAS and accrual accounting,
often in fragile countries. You need
a roadmap that gets you there,
and often that is what is missing.”
Darshak Shah, Chief Financial Officer,
United Nations Development Programme
(UNDP)
The conversion to
accrual accounting is
a multi-year project.
27. 25PwC Global survey on accounting and financial reporting by central governments
Phase two: Conversion
The second phase of the conversion
methodology involves project set-up,
component evaluation and issue
resolution, plus the initial conversion.
The project set-up is designed to enable
the organisation to manage the
conversion project to a successful
conclusion while continuing to run its
activities effectively. For this purpose,
the project management structure is set
down, conversion tools are tailored, and
the project strategy is communicated
throughout the entity.
The initial conversion enables
preparation of the entity’s first IPSAS or
IPSAS-like financial statements and
means that an informed decision can be
made on the ongoing conversion
strategy. For this, IPSAS (or equivalent)
reporting process and systems need to be
designed, built and tested, adjustments
need to be calculated, reporting packs
completed for required disclosures, and
IPSAS (or equivalent) results
consolidated and analysed.
Phase three: Embedding
The final phase is designed to enable the
organisation to move smoothly to a new
‘business-as-usual’ operation, using its
‘new language’ comfortably and
authoritatively. Embedding the change
involves continuing IPSAS (or
equivalent) training throughout the
entity, finalising the accounting manual
and chart of accounts, completing
systems’ design, build and testing,
designing and rolling out new business
processes and procedures including
internal control and risk management,
and modifying budgeting processes.
In practice, depending on the needs and
time constraints of the project, portions
of the work relating to phases two and
three may be carried out simultaneously.
Once conversion is completed, the new
accounting framework is embedded
across the organisation, with modified
systems, updated controls and
procedural documentation, and fully
trained staff.
Phase one: Gap analysis
and roadmap
The objective of a gap analysis
(comparison of the situation “as is” with
the situation “to be”) is to gain a detailed
understanding of the impact of IPSAS (or
equivalent) on the organisation,
highlight key accounting and reporting
issues that need to be addressed,
understand which business processes
may be impacted, and take an informed
decision on how to proceed with the
conversion.
The roadmap allows the organisation to
develop a detailed project plan, define its
needs and estimate the cost of the entire
conversion process, including from an
information system point of view.
Figure 13: PwC conversion methodology for the adoption of IPSAS or similar government accounting standards
Financial
management
and reporting
Systems
Project
and change
management
Policies
People Processes
Gap
analysis and
roadmap
EmbeddingConversion
The PwC IPSAS (or equivalent)
conversion methodology suggests
following a three-phase approach, as
illustrated opposite:
• the initial diagnostic involves a
detailed gap analysis, which
produces a roadmap for successful
conversion;
• the actual conversion phase results
in production of the first IPSAS or
IPSAS-like financial statements;
• the embedding phase ensures that
systems, processes, policies and
behaviours are adapted to report
efficiently under IPSAS (or
equivalent) on a ongoing basis.
28. 26 PwC Global survey on accounting and financial reporting by central governments
Accrual accounting conversion
requires a significant commitment of
resources in terms of time, effort and
money. It also demands specialised
skills and a general shift in the
mindsets of people at all levels of the
organisation. IT systems need to be
upgraded or new systems put in place
in order to support the change.
Commitment from senior
management and politicians is
essential in order to secure the
necessary resources and promote
buy-in.
Lack of trained staff
Accrual accounting is more complex
than cash accounting. It requires
greater technical accounting
expertise, increased professional
judgment, and greater involvement of
non-accounting staff in the decision-
making process. Over half of the
survey respondents identified the lack
of trained staff as the principal
challenge faced by governments when
implementing accrual accounting.
The expertise required is not limited
to understanding the basic accrual
concepts; technical knowledge is
required for complex accounting areas
such as financial instruments,
employee benefits, property valuation
and consolidation, to name just a few
examples. Staff training is also
necessary on an operational level in
areas such as fixed asset and
inventory management.
A well-designed project and effective
change management strategy that considers
people and systems requirements are
crucial for successful implementation.
PwC insight
8
“Adoption of IPSAS-like standards
was supported by lots of trainings
and organising a help-desk in the
Ministry of Finance.”
Juta Maar, Head of the State Accounting,
Estonia
“The lack of trained staff is our
biggest challenge, academic
qualifications are not enough, we
need professionals.”
Emmanuel Sinzohagera, Chartered
Accountant, Burundi
“We plan to move the national
training plan forward, extending
knowledge and coverage,
including by creating synergies
with the academic world.”
Pedro Bohorquez Ramirez, Accountant
General, Colombia
The lack of trained
staff and IT system
requirements are the
main challenges.
Figure 14: Challenges of accrual accounting conversion
55%
46%
27% 27%
18%
0%
20%
40%
60%
80%
100%
Lack of trained staff IT system
requirements
Lack of
commitment
from senior
management
Cost of
conversion
Expected impact
on reported
financial position
Percentage ranked in top 3 challenges of adopting IPSAS or similar standards.
55%of survey respondents identify the lack of
trained staff as one of the top three challenges.
29. 27PwC Global survey on accounting and financial reporting by central governments
IT system requirements
Almost half of the survey respondents
identify IT system requirements as
one of the top three challenges faced
when adopting IPSAS or similar
standards. Governments recognise
that the right IT systems need to be in
place to record and report the data
necessary for accrual accounting (e.g.
add details of goods and services
received in the expense workflow,
develop new ways of reporting and
communicating financial information,
etc.). Technical IT and enterprise
resource planning (ERP) expertise is
required from the very start of the
conversion process, in such activities
as system architecture and design,
through to embedding activities
including staff training for data entry
and management.
The scope of the government
reporting entity must be considered
when designing IT solutions to all
consolidated entities and multiple
finance functions including
procurement, budgeting, accounting
and treasury operations.
“What we see in many countries
and consistently in lower income
countries is a fragmentation of
accounting and financial
reporting systems, lack of an
integrated FMIS and wide use of
spreadsheets. These challenges
should be addressed when moving
to meaningful reforms.”
Simon Bradbury, Controller, Asian
Development Bank
The initial set-up could be done on a
pilot basis with consideration being
given to future roll-out with interfaces
to local systems that can be integrated
in the future. Many public sector
entities use their accrual adoption as
an opportunity to set up an ERP
system and upgrade their financial
function with new functionalities like
cost accounting and enhanced budget
follow up.
The IT system must be configured so
as to capture all necessary data inputs
in order produce the required outputs
(i.e. accrual-based reports). In the
area of fixed assets, for example,
systems and processes must be in
place to capture information over a
very large perimeter and resolve
complex technical issues. In some
cases, governments may have an asset
register but the information available
is not always exhaustive and the
software not designed to embark
necessary accrual data.
30. 28 PwC Global survey on accounting and financial reporting by central governments
31. 29PwC Global survey on accounting and financial reporting by central governments
“It is important to train staff and
to invest in IT system changes.
Furthermore, it is important to
deal with politicians in order to
make them understand and
support the changes.”
Gilvan Dantas, Accounting Subsecretary,
Ministry of Finance, Brazil
“To sell the accounting reform
project you must bring added-
value to the partners. They need to
see the value for their purposes. If
they had not seen the value added,
they would not have come along.”
Abdelkrim Guiri, Director of Accounting
Standards, Kingdom of Morocco
“Implementing accrual
accounting standards based on
IPSAS will require political buy-in
and support, intensive training,
development partners’ support
and improvement of our
information system.”
Blaise Allela, Permanent Secretary, Gabon
Lack of commitment from
senior management and
politicians
27% of survey respondents identified
the lack of commitment from senior
management as one of the top three
challenges faced in the conversion to
accrual accounting.
Strong commitment from senior
management and politicians is
important to increase the buy-in and
participation of key stakeholders and
promote the benefits of accrual
accounting throughout the
organisation. Moving to accrual
accounting includes many people in
the accounting and decision-making
process, as non-accountants become
involved in data collection and
decision-making.
A significant shift is required in the
mindset of management, staff and
other stakeholders and effective
change management is indispensible
to achieve this shift and ensure a
successful transition overall. Change
management processes should be put
in place, including training, project
management, awareness campaigns
and organisational changes. Change
management should take a holistic
approach considering the entire
organisation and not only focusing on
accounting departments.
Cost of conversion
The cost of the conversion is seen as
one of the top three issues by 27% of
the respondents. Making the
transition to accrual-based standards
may require significant investment,
namely in IT and capacity
developments. However, the benefits
in terms of increased transparency
and improved public finance
management should clearly outweigh
the costs.
The expected impact on the
reported numbers
The expected impact on the reported
numbers is identified as a major
barrier only by 18% of the
respondents. The concern primarily
relates to reporting the actual level of
government liabilities, including
pension liabilities and liabilities
arising from various financial
transactions.
32. 30 PwC Global survey on accounting and financial reporting by central governments
The future of the government finance function
Part 3
33. 31PwC Global survey on accounting and financial reporting by central governments
Governments indicate a desire to
improve their finance function................32
Cost accounting, performance
management, fixed assets management
and long-term planning and forecasting
are the key areas for improvement .........36
Key finding
9
Key finding
10
34. 32 PwC Global survey on accounting and financial reporting by central governments
Improving the compliance,
control and efficiency of the
government finance function
The conversion to accrual accounting
provides an opportunity to rethink
the transactional process flow, build
accounting capacity and reduce the
overall cost of public administration.
Internal control frameworks can be
revised and reflect the changes in
accountability, roles and
responsibility resulting from accrual
procedures.
Effective control environments and
optimal risk management procedures
can be put in place to improve areas of
compliance and control, while
simplified, standardised processes are
typically used as a means of achieving
efficiency gains.
Process improvements may leverage
technology or involve transactional
processing solutions and may include
shared service centres or outsourcing
arrangements that can handle
complex transactions. Policy and
procedure manuals would also be
updated to reflect the accrual
framework and dashboards would be
developed to monitor data quality and
system outputs. As a result, new
standards and processes will flow
across the entire organisation.
Survey respondents were asked to
evaluate three key dimensions that
contribute to the overall effectiveness
of the government finance function:
compliance and control, efficiency,
and insight. These dimensions should
be viewed as complementary and
mutually reinforcing. Together, they
stand to enhance the effectiveness of
the finance function and contribute to
the sound, accountable, transparent
management of public finances.
On average, governments rate their
current performance in these areas
between ‘fair’ and ‘good’ but show a
clear intention to improve their finance
functions over the next five years
(see Figure 18).
By transitioning from scorekeeper to business
partner, government finance functions
will attain significant improvements.
PwC insight
9
“Back-office efficiencies are an
area of focus. A key initiative is
convergence to one standard
configuration for one type of ERP
system.”
James Ralston, Comptroller General, Canada
“Once all data are in the financial
records, there are very significant
efficiency gains. You can report
accurately at any moment, analyse
by unpaid invoices, uncollected
debts, you know how old your
equipment is and can set up a
replacement schedule, you can
develop scorecards and other
management tools.”
Brian Gray, former Accounting Officer and
former Director General of the Internal Audit
Service, European Commission
Governments indicate a
desire to improve their
finance function.
Figure 15: PwC’s finance assessment framework
Insight
Compliance
& Control
Efficiency
Complying with existing policies,
rules and regulations and
establishing procedures to ensure
that such compliance is achieved.
Performing tasks in the most
timely and cost effective manner,
typically via simplified,
standardised processes.
Producing value by producing
information necessary for optimal
decision-making by management
and external stakeholders.
35. 33PwC Global survey on accounting and financial reporting by central governments
From scorekeeper to business
partner
While accrual accounting provides the
basic foundation for a modern finance
function, moving finance up the value
chain within government needs it to
produce more than year-end or
historical financial statements in the
role of scorekeeper. The finance
function must play a proactive role in
providing key information that
informs strategic, operational
decisions, thereby earning a place at
the decision-making table as an
important business partner within the
government entity. To provide this
insight, the finance function should go
beyond simply maintaining accounts
and producing financial statements; it
should be concerned with analysing
financial data, assessing the cost of
public services and offering practical
interpretations on the meaning and
relevance of financial information.
In fact, such insight lies at the heart of
the finance function and places a
focus on the way in which information
is used. Accrual-based data and
dashboards can be used to carry out
performance assessment and produce
business analytics that feed back into
the system, leading to the adjustment
of policies and processes as a result of
the performance outcomes observed.
In order to successfully transition
from scorekeeper to business partner,
the finance function must be able to
contribute information that is relevant
to decisions as they are being made,
not after. Thus, the timeliness of
financial information becomes
crucial. Information should be
produced and updated regularly to
support decision-making on an
ongoing basis.
Figure 16: Moving from scorekeeper to business partner
Communicator
Scorekeeper
Business partner
Diligent caretaker
ProactiveReactive
Understanding activities
Accounting skills
mandatory activities
Shift from reconciliation to
insightful analysis
Monitor service
level agreements
Earn a place at the
decision making table
Automate & seek
process efficiency
Current profile Target profile
“Accrual accounting provides a
great view of everything behind
you, but you must also look at the
traffic ahead.”
Jean-Philippe Duval, PwC Partner
36. 34 PwC Global survey on accounting and financial reporting by central governments
37. 35PwC Global survey on accounting and financial reporting by central governments
Figure 17: Preparation of government financial statements
14% 14%
2%
70%
Quarterly Every 6 months Annually Ad hoc
Public entities lag behind their private
sector counterparts in terms of in-year
reporting. Publication of quarterly
reports has become a norm for listed
companies, whereas only 14% of
survey respondents indicated that
they do this. Another 14% produce
semi-annual statements, however, the
vast majority (70%) of governments
produce financial statements just once
a year.
Thus, there is significant room for
improving public accounting in terms
of timing and frequency. Ideally,
quarterly financial reports should be
produced and aligned with budget
reports in order for governments to
realise the full benefits of accrual
accounting. Interim financial reports
prepared on a monthly or quarterly
basis provide real-time information
that can be used as a monitoring tool
throughout the year.
“The ultimate aim is a better
public service. We are redefining
what the objectives are and how we
measure achievement of those
objectives. We want to establish
measures that can be used to help
when making marginal decisions.”
Fergus Welsh, Chief Financial Officer and
Chief Accountant, The Treasury, New
Zealand
“It is possible for developing
countries to implement best
practices. If you look at the case of
Kazakhstan, they have moved in a
four-year period from passing the
legislation to rolling out the full
FMIS.”
Simon Bradbury, Comptroller, Asian
Development Bank
“The department of finance is very
focused on being able to interpret
the differences between budget
and the actual situation. Far and
above everything else, it is what
gathers attention.”
James Ralston, Comptroller General, Canada
Accrual accounting is a key driver to increasing capacity and improving
quality in the government finance function. It is an essential step toward
improved public financial management and decision-making. The
government finance function must demonstrate its usefulness by providing
insights into business performance and contributing to public value creation.
38. 36 PwC Global survey on accounting and financial reporting by central governments
Improving these key areas will contribute
to the overall objective of enhanced
service performance and long-term
sustainability of public finances.
PwC insight
10
Cost accounting,
performance management,
fixed assets management
and long-term planning
and forecasting are the key
areas for improvement.
Figure 18: Expected evolution of the effectiveness of the government finance function
Very poor Poor Neither nor Good Very good
0 1 2 3 4
Fixed assets management
Cost accounting
Performance management
Long term planning and forecasting
Accounts receivable
Accounts payable
Financial reporting
General accounting
Budget
Overall
Now In 5 years
Fixed asset management
Fixed asset management is a vast area
for improvement, with governments
managing a large and diverse number
of fixed assets. Assets are held
primarily for their service potential
and a significant portion of these
assets are of a specialised nature (e.g.
bridges, military assets, etc.), for
which there is a very limited market.
Strong asset management practices
will provide information for use in
determining financing strategies,
repair and maintenance schedules,
optimal space allocation, logistic and
supply chain management practices,
and asset-disposal decisions.
Availability of such rich, detailed
information in turn helps to identify
opportunities for cost savings and
optimisation.
Cost accounting
Cost accounting practices stand to
contribute to efficiency and insight
objectives within the finance function.
Cost accounting provides a basis for
evaluating the cost of delivering
government programmes and services
and can be used to communicate the
results of specific government
operations. As governments begin to
place increased emphasis on
managing for performance, cost
accounting becomes important to the
financial indicators that track
government performance.
Cost information must be considered
when evaluating government outputs
(what it delivers to achieve objectives)
and outcomes (impact of the outputs
in delivering against objectives) to
assess performance in delivering
value for money.
Despite assessing the current capacity
of their finance functions between
‘fair’ and ‘good’ overall, governments
see an opportunity, or even a
necessity, to improve in specific areas
of financial management. Fixed asset
management and cost accounting are
key areas in which information
improvements can increase insight
and, thus, overall effectiveness of the
finance function. Performance
management and long-term planning
and forecasting, provide additional
insight in terms of the future of the
finance function and the long-term
sustainability of government policies
(see Figure 18).
39. 37PwC Global survey on accounting and financial reporting by central governments
“The focus of our reform was to
increase efficiency in government
spending especially on operating
expenditure and to support cost
accounting, performance
management and planning, and
asset management (especially
fixed assets and intangibles).”
Erik Hammer, Head of Division, Ministry of
Finance Agency for the Modernisation of
Public Administration, Denmark
Performance measurement
Effective performance measurement
systems have a critical role to play in
supporting government policy-
making and implementation. They
must be designed and implemented so
as to optimise the link between
strategic planning, the subsequent
delivery of services, and measurement
in both financial and non-financial
terms against budgets and
overarching policy objectives.
Such an approach helps governments
meet their service delivery objectives
and thereby add value for citizens.
Long-term planning and
forecasting
Accrual-based financial information
provides a vast amount of information
on government resources and its
future obligations. The finance
function has an indispensible role to
play in planning future government
programs and services and assessing
the sustainability of government
policy, especially in light of
demographic trends.
By strengthening the planning and
forecasting capacity, the finance
function stands to increase its
relevance in the decision-making
process.
Individual initiatives can be taken for
targeted improvements in asset
management, cost accounting,
performance measurement or any
other aspect of the financial
management. However these are
closely interrelated, with data
gathered on area often used in, and
necessary for, subsequent reporting
and analysis functions. Thus, a
holistic approach is often the best
approach to improve the finance
function as a whole. Accrual
accounting will lead to improvements
in the quality of financial data, which,
can be used in the context of a wider
finance function to assess
performance and influence resource
allocation and other strategic
decisions.
40. 38 PwC Global survey on accounting and financial reporting by central governments
List of survey respondents
Country
Level of
country
development
Continent
OECD
NonOECD
Africa
Asia
Europe
LatinAmerica&Caribbean
NorthAmerica
Oceania
Algeria2
� �
Angola2
� �
Argentina � �
Armenia1
� �
Australia � �
Austria � �
Bangladesh1
� �
Belgium � �
Brazil � �
Bulgaria2
� �
Burundi � �
Cambodia1
� �
Cameroon2
� �
Canada � �
Chad2
� �
Chile � �
China � �
Colombia � �
Costa Rica � �
Croatia � �
Cyprus � �
Czech Republic � �
Democratic Republic Congo � �
Denmark � �
Dominican Republic � �
Country
Level of
country
development
Continent
OECD
NonOECD
Africa
Asia
Europe
LatinAmerica&Caribbean
NorthAmerica
Oceania
El Salvador � �
Estonia � �
Fiji1
� �
Finland � �
France � �
Gabon � �
Georgia � �
Germany � �
Ghana2
� �
Guatemala � �
Guinea � �
Honduras � �
Hungary � �
Iceland � �
India � �
Indonesia1
� �
Ireland2
� �
Israel � �
Italy � �
Ivory Coast � �
Japan2
� �
Kazakhstan1
� �
Kenya � �
Latvia2
� �
Laos1
� �
1
Gathered with contributions from the Asian Development Bank.
2
Gathered via PwC desk research.
41. 39PwC Global survey on accounting and financial reporting by central governments
Country
Level of
country
development
Continent
OECD
NonOECD
Africa
Asia
Europe
LatinAmerica&Caribbean
NorthAmerica
Oceania
Lebanon2
� �
Liberia � �
Lithuania2
� �
Luxembourg � �
Malawi � �
Malaysia � �
Malta � �
Mauritius � �
Mexico2
� �
Monaco � �
Mongolia1
� �
Morocco � �
Nepal1
� �
Netherlands � �
New Zealand � �
Nigeria � �
Norway2
� �
Oman2
� �
Pakistan � �
Panama � �
Peru � �
Philippines1
� �
Poland � �
Portugal2
� �
Qatar2
� �
Country
Level of
country
development
Continent
OECD
NonOECD
Africa
Asia
Europe
LatinAmerica&Caribbean
NorthAmerica
Oceania
Romania � �
Russia � �
Rwanda � �
Saudi Arabia � �
Serbia � �
Slovakia2
� �
Slovenia2
� �
South Africa � �
Spain � �
Sweden � �
Switzerland � �
Tajikistan1
� �
Tanzania � �
Thailand1
� �
Turkey2
� �
Turkmenistan1
� �
Turks & Caicos Islands � �
Uganda � �
Ukraine2
� �
United Arab Emirates2
� �
United Kingdom � �
United States2
� �
Uzbekistan1
� �
Vietnam1
� �
Zambia � �
Total 32 68 21 27 34 13 2 3
100 100
42. 40 PwC Global survey on accounting and financial reporting by central governments
Let’s talk
If you have any questions about the PwC global survey on accounting and
financial reporting by central governments, or would like to discuss further any
of the topics covered in this publication, please get in contact with us.
Jan Sturesson
Global leader Government & Public Services
Tel: +46 10 212 99 39
jan.sturesson@se.pwc.com
Jean-Louis Rouvet
Global Public Finance & Accounting leader
Tel: +33 1 5657 8578
jean-louis.rouvet@fr.pwc.com
Patrice Schumesch
Global Public Finance & Accounting Partner
Tel: +32 2 710 4028
patrice.schumesch@pwc.be
Jean-Philippe Duval
Global Public Finance & Accounting Partner
Tel: +33 1 5657 8461
jean.philippe.duval@fr.pwc.com