New ED on government reporting.In an attempt to fill a void in international standards for public-sector entities, IFAC's public sector committee (PSC (Public Service Commission) Same as PUC. ) issued for exposure Guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. for Governmental Financial Reporting. The draft describes the most common forms of government accounting and gives best practices examples of each. The PSC guideline is not an accounting standard. Rather, it is intended to provide governments worldwide with a platform for a common understanding of the key principles of government accounting methods. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the ED, which does not prescribe pre·scribe v. To give directions, either orally or in writing, for the preparation and administration of a remedy to be used in the treatment of a disease. any one method, the four most common bases of accounting used by governments are cash, modified cash, accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. and modified accrual. The guideline endorses their use as a means to ensure more reliable, comparable information about the financial performance and position of governments. "Governments are competing with private-sector entities for capital," said John Gruner, IFAC IFAC - International Federation of Automatic Control, involved in informatics related to control systems. director general. "By making their financial positions more transparent, governments will be better able to get the capital they need." Comments on the ED are due by July 31, 1998. Standardizing the future The PSC also is drafting a set of standards on accounting and financial reporting by governments that will be based on international accounting standards (IASs). IFAC develops IASs generally for private-sector entities using the accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it of accounting. The PSC is determining which IASs can be applied under all four methods of accounting for governments. A very busy IFAC The IFAC also issued four other publications for its member organizations: an exposure draft, Implications for Management and Auditors of the Year 2000 Issue; a paper, An Advisory on Examination Administration; an international management accounting study, Environmental Management in Organizations: The Role of the Management Accountant; and a revised international management accounting practice statement. The documents are available by phone at 212-286-9344 or online at www.ifac.org. Comments on the governmental financial reporting exposure draft may be e-mailed to EDComments@ifac.org. |
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