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The adoption of accrual budgeting and accounting by developing country governments is controversial. Supporters emphasize the benefits and the successful experiences of developed countries. Opponents contend that developing country governments should get the basics right, before attempting to introduce complex accounting practices. In the absence of practical guidelines and reference materials on this issue, the Asian Development Bank (ADB) has generally supported, though not necessarily encouraged, our developing member countries (DMCs) in their efforts. In doing so, ADB has learned that lessons from developed countries do not always hold true in the DMC environment. In the face of resource constraints, a lack of high-level commitment, complexity and strong opposition from groups with vested interests, ambitious government financial management reform programs often do not fully deliver promised benefits. This report examines teh relevance of accrual budgeting and accounting in government for ADB DMCs and provides relevant background and guidance on this important issue. It presents practical suggestions on how DMCs might improve their government accounting arrangements in a gradual, systematic manner. Contents: Executive Summary I. Introduction II. Government Accounting III. Arguments for and Against Accrual Accounting V. Country Implementation xperiences VI. Implications and Recommendations for DMCs References Post Date : 24 Juni 2010 |