OVERVIEW OF GOVERNMENT

ACCOUNTING STANDARDSPresented by

Shefali S AndaleebPrincipal Director

O/O CAG of India

Overview of the session and session objective

Government Accounting framework and policy- theoretical precept

Role of GASAB Introduction to IGAS and IGFRS Questions and comments

23/11/2015 2

Government Accounting-1

The Premise In public financial management cycle , accounting follows budgeting and precedes auditing

A measurement of financial consequence of actual transactions and events- regulated by rules to ensure quality of inputs and outputs of accounts

23/11/2015 3

Government Accounting-2

Situation as it exists… In commercial context

Accounting in dual contexts : internal ( budget, cost, performance evaluation), external ( financial reporting)

Dichotomy not appropriate in government accounting

Budgeting : political process Accounting : budget control and budget reporting Financial accounting : comparatively recent

emergence in public sector

23/11/2015 4

Government Accounting-3

The conflict

Business-oriented financial accounting not deferential to the rules of government budgeting, thus the potential for misunderstanding and conflict

Budget rules founded on Law , budget accounting follows budget rules

23/11/2015 5

Government Accounting-4

The solution

Financial Accounting Rules / Standards

Defined by concern for credible and comparable financial information

Recognised standard setting process / Body

23/11/2015 6

Features of a typical Government Accounting Framework

Accounting structure which provides an authoritative basis to governments to :

Asset ownership , effective control, and protection of economic value of public property

Types, Amounts, Timing of public debt and other obligations- inlcuding uncertainties if any

Assess financial condition and perfromance

23/11/2015 7

Purpose and Scope

Scope : applicable to all public authorities whihc are ”accounting / reporting entities”

Purpose: ensure consistent application of Standards for presentation of financial information

23/11/2015 8

Structure and Role of GASAB Constituted by C&AG of India in August 2002 with

the support of Governement of India BoardChair : Dy CAG (GA) Member Secy:

DG/PD, GAMembersFinancial Commissioner, RailwaysMember Finance, DoTSecy, Deptt of PostsCGDACGAADS/JS, MoFRBI, NCAER, ICAI, ICWAI

23/11/2015 9

Structure and Role of GASAB Formulate and improve standard of

government accounting and reporting Formulate and propose standards that

improve usefulness of financial reports Keep standards current Provide implementation guidelines

23/11/2015 10

OVERVIEW OF GOVT ACCOUNTING AND REPORTING STANDARDS

23/11/2015 11

Notified Standards

23/11/2015 12

Standards Under Consideration

23/11/2015 13

Reporting Standards Under Consideration

23/11/2015 14

Questions and Comments

THANK YOU

23/11/2015 15