Botswana - Accrual Accounting Policy Note and Guide
This paper comprises two volumes: volume one, this concise policy and guidance note that deals with the request as outlined, and a volume two which provides more detailed technical guidance on the implementation of International Public Sector accou...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2011/08/17171780/botswana-accrual-accounting-policy-note-guide http://hdl.handle.net/10986/12322 |
| Summary: | This paper comprises two volumes: volume
one, this concise policy and guidance note that deals with
the request as outlined, and a volume two which provides
more detailed technical guidance on the implementation of
International Public Sector accounting Standards (IPSAS)
accrual based standards. Recommended reforms directly
relevant to this paper include: 1) fiscal reforms on both
the revenue and expenditure sides to limit fiscal deficits
and ensure a return to a sustainable medium term fiscal
path; and 2) transforming the current planning and budget
system which falls short in meeting the usual measures of
budget effectiveness by, for example, moving towards
government-wide medium term fiscal and expenditure
frameworks and a program budget in the medium term, in
tandem with public sector reform and the necessary changes
to the Public Financial Management (PFM) legal framework and
the government accounting system. Accrual accounting is a
methodology under which transactions and other events are
accounted for when they occur, and not only when the
associated cash is received or paid. Following this
methodology, revenues are accounted for when income is
earned (and not just when the cash is received), and
expenses are accounted when liabilities are incurred or
resources consumed (and not just when cash is paid). As a
consequence financial statements prepared on an accrual
basis of accounting will not just report on cash balances,
payments and receipts, but fully on all assets, liabilities,
net assets/equity, revenue and expenses. This contrasts with
the cash accounting methodology which recognizes
transactions and other events only when cash is received or paid. |
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