government accounting an assessment of theory, purposes and.pdfVIP

JANUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 9 Government Accounting: An Assessment of Theory, Purposes and Standards Ehsan Rayegan Department of Accounting,Scool of Social Since , Razi University, Kermanshah, Iran Mehdi Parveizi Thecher of Islamic Azad University, Giylan gharb, Iran Kamran Nazari Department of Business Management, Payam Noor University, Kermanshah, Iran Mostafa Emami Teacher of Kermanshah University of Applied Science Abstract Developments in governmental activities in recent years have raised concerns over whether the cash basis of accounting is sufficient for governmental accounting and reporting. Accrual accounting, previously thought to be only suitable in the private sector, has been seen to be an alternative for better reporting of government activities. Although there is a continuing debate over the use of cash versus accrual accounting, accrual accounting has been adopted in he governments of several countries including Australia, New Zealand and the United Kingdom. Government accounting and financial reporting aims to protect and manage public money and discharge accountability In order to achieve ambitious socioeconomic goals, developing countries require public sector institutional capacity for setting and implementing public policy, which in turn necessitates government accounting reform. The social value of government accounting reform therefore lies in its contribution to