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From Cash to Accrual Budgeting and Accounting in the Public Sector: The Dutch Experience
Author(s) -
Peter van der Hoek M.
Publication year - 2005
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.0275-1100.2005.00353.x
Subject(s) - accrual , accounting information system , accounting , business , cash , management accounting , revenue recognition , cash flow statement , public sector , accounting standard , government (linguistics) , cost accounting , cash flow , financial accounting , economics , finance , linguistics , philosophy , economy , earnings
Traditionally, governments used to deploy input‐based budgeting systems and cash‐based accounting systems. However, these systems do not provide the information that is necessary for a government to operate efficiently and effectively. Therefore, a growing number of countries have already shifted or are planning to shift from cash‐based to some form of accrual accounting in the public sector. Usually, the implementation of some accrual‐based system is linked to wider financial management reforms including performance management requiring information on cost. This paper focuses on the Dutch experience with the shift from cash‐based accounting and budgeting systems to an accrual‐based system.