FEE published a briefing paper on accrual accounting. This paper aims at highlighting some of the key benefits of adopting accrual accounting and its contribution to governments’ financial decision-making process.
Adopting accrual accounting will bring significant benefits to Member States as it has for business since centuries. It may be challenging for those Member States who are used to cash accounting. However, experience shows that the paybacks will largely offset transition costs. Accrual accounting can contribute to long term planning and assist governments in sustainable decision making.
This is a critical time for Europe. Political leaders need to take important and forward-looking financial decisions for future generations. Public sector accounting needs to provide them with reliable financial information for short, medium, and long-term decisions.
Politicians and the public need to have complete and accurate financial information in order to be able to make the best economic and policy choices for today and tomorrow.
As expressed in previous publications, FEE would like to reiterate that public sector accounting standards should preferably be international to ensure that the EU remains attractive to global markets.
Full briefing paper
© FEE
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