CONTEXTUAL FACTORS AND MOTIVATORS OF THE ACCOUNTING DEVELOPMENTS IN ESTONIAN LOCAL GOVERNMENTS 1. Toomas Haldma, Helje Jõgi University of Tartu

Size: px
Start display at page:

Download "CONTEXTUAL FACTORS AND MOTIVATORS OF THE ACCOUNTING DEVELOPMENTS IN ESTONIAN LOCAL GOVERNMENTS 1. Toomas Haldma, Helje Jõgi University of Tartu"

Transcription

1 CONTEXTUAL FACTORS AND MOTIVATORS OF THE ACCOUNTING DEVELOPMENTS IN ESTONIAN LOCAL GOVERNMENTS 1 1. Introduction Toomas Haldma, Helje Jõgi University of Tartu By the end of the last century the initiatives within the framework of New Public Management (NPM) encouraged the adaptation of private sector management techniques within the public sector, as well as development of assessing performance measurement in order to monitor the degree of efficiency and effectiveness with which the public services are delivered, and to evaluate the financial consequences of management decisions. The public sector reform will also modify the traditional channels of accountability. Because of this, the governmental accounting systems evolve in order to face the challenges of the 21 st century public sector requirements. At the beginning of the century, as revealed analysis arranged by Lüder and Jones (2003), the stage of development of the national governmental accounting systems is very variable. In the course of the recent transition process, Estonia has simultaneously experienced many economic, social and political changes. As a result of the dramatic shifts in operating conditions, the country s local government system has also undergone both a financial and a management reform. These alterations have also implications to the nature and practice of accounting systems. The main purpose of this paper is to apply the contingency approach to explain the contextual factors influencing innovations and the motivators (stimuli) of these processes in Estonian local government accounting during the last decade. The crucial issue is the transition from cash-basis principles towards the accrual bases accounting introduced in Estonian local government system. We describe the recent innovations in Estonian local municipalities and discuss how the contextual factors have interfered in the change process. The paper analyses these factors of the local government accounting reform during the three stages of the Estonian accounting reform: the introductory, system-building and system improvement stages. The paper is organized as follows. The next section sets a theoretical framework for the analysis, drawing on the phased approach and contingency approach. The third section will analyze the legal framework for the Estonian local governments reform and subsequently the regulatory framework of the accounting reform in Estonian local governments will be described. Fifth section will analyse the motivating 1 The current paper is based on an investigation supported by the Estonian Science Foundation Grant No

2 drivers of the process of implementation accrual bases accounting. Finally, concluding remarks on the study will be presented. 2. Theoretical framework of the study In accounting research, the influencing impacts on accounting system are often studied with help of contingency approach. A contingency model of governmental accounting was developed by Lüder (1992) to specify the social-politicaladministrative environment and its impact on governmental accounting innovations (Lüder, 1994, p. 1). This model was designed in circumstances of the absence of reform stimuli, unfavourable structural variables and the presence of implementation barriers. Subsequently, the main contextual features have changed through the governmental fiscal stress and dominating superiority of managerialism doctrine (Lüder, 1998, p. 118). Innes and Mitchell (1990, p. 4) pointed out, that contingency theory attempts to explain why accounting system exists in a particular form within an organization at a given point in time. The dynamics of moves or changes are not prescribed. Although the original contingency model of governmental accounting, developed by Lüder, included only contextual variables (see Chan et al., 1996, p. 19) during the next years the attitudinal and behavioural variables were added to the contextual variables. Consequently, the contingency model has been modified and improved during last decade. The latest version the Financial Management Reform Process (FMR) Model (Lüder, 2003) consists two contextual features (legal system and institutional arrangements of the process of setting accounting norms and rules; main stimuli that trigged the reform), three behavioural features (reform drivers; political promoters; stakeholders) and two instrumental (attitudinal) features (reform concept; implementation strategy). Some can distinguish three generation of contingency models in governmental accounting (see Monsen and Näsi, 1998). At the same time the attitudinal and behavioural variables can be regarded as drivers of the accounting innovation or change (Mattisson et al., 2004). Bailey (1998, p. 1462) suggested that the phased approach could be used to divide an accounting reform into periods. In the current paper, the phased approach has been involved in order to divide the accounting reform into periods and to expand the scope of the Estonian governmental accounting reform. Literature analysis revealed that the phased approach has been used through different steps of the reform describing governmental accounting innovations in Portugal (Jorge, 2005, p ). Ellwood (2002) argues that an effective reform of public sector financial management is a long and incremental process. Changes in accounting systems are often part of wider changes in management process. Therefore, the change drivers itself can be influenced by a wide range of management decisions and changes in the organisation. Innes and Mitchell (1990) describe the mismatch between the accounting system and its environment, which creates a tension and pressure for change. They explain the accounting change process drivers in terms of facilitators, motivators and catalysts, which have been widely used also by other researchers (see Laitinen, 2001; Luther and Longden, 444

3 2001). Facilitators are drivers, which are necessary but not sufficient for a change to occur (such as, for example, an adequate number of accounting staff). Motivators are drivers, which influence the change in a general manner (such as competitiveness of market). Finally, a third set of drivers directly associated with the timing of change is termed catalysts (such as arrival of a new accountant). Innes and Mitchell (1990) point out that motivators and catalysts act positively to generate change but could only become effective where suitable facilitating conditions exist. Besides the positive influences on accounting change Lüder (1992) and Groot and Lukka (2000) distinguish also the impact of barriers or obstructers on the accounting change. Facilitators, motivators and catalysts may be necessary to create a potential for change and innovations, but action by individuals is needed to overcome the barriers to change. Therefore, to analyse the conceptual aspects of the accounting reform in Estonian local governments, we use an integrated theoretical framework of contingency approach describing the factors influencing governmental accounting change and the phased approach to the change, which we try to merge into a single theoretical framework. 3. Development of local governments in Estonia Having regained independence in 1991, Estonia has undergone fundamental political and structural changes over the last decade, which has also affected the operation of its governmental units on the State as well as on the municipal level. The principles of the local government are stipulated in the Constitution of the Republic of Estonia which was adopted by a referendum held in The Chapter 14, article 154 of the Constitution provides that all local issues shall be resolved and regulated by local governments, which shall operate independently in accordance with law. Duties may be imposed on local governments only pursuant to law or by the agreement with the local government. Expenditures related to the duties of the state imposed by law on local governments shall be funded from the state budget. According to the article 155 the local government units are rural municipalities and cities. Nowadays the territory of Estonia is divided into 15 counties (maakond) and 241 local government units, comprising 39 cities (linnad) and 202 rural municipalities (vallad). At the beginning of 1990s Estonian local government system was based on two tiers. Counties formed the local government units of the second tier, those were formed on the basis of the former Soviet administrative units. The first tier of the local governments comprised cities, rural municipalities and towns. Upon providing state support to local budgets, the Soviet principles based on standard expenses calculated on the basis of the expenses of the previous year prevailed in several occasions. Such system did not allow for sufficient separation of the local budgets from the state budget. By the autumn of 1993, all the administrative units of the first tier had acquired the status of local government and from 1994 a new local government organisation was put into effect, which completed the local government reform. The local government system began functioning at one tier, which consists of rural municipalities and cities. The counties became the regional administrative units, the 445

4 county governors became the representatives of the state in the counties. During a package of the laws regulating the local government was adopted. This set includes the following acts, which have also impact on the regulation of financial management and accounting issues in local governments: Local Government Organisation Act (adopted in 1993); Rural Municipality and City Budgets Act (adopted in 1994); Rural Municipality and City Budgets and State Budget Correlation Act (adopted in 1994, in force up to 2002); Local Taxes Act (adopted in 1994); According to the Local Government Organisation Act, section 10, an each municipality is an independent public legal person and an economic and accounting entity. Highest decision-making in the local governments belongs to the municipal council elected for three years by the residents. In addition to the council, municipal organs comprise a municipal board, which is responsible for administration and financial management of local authority, and committees and sub-committees. Local budgets are separated from the state budget. The procedure for preparation, approval and implementation of local budgets has been established by the Rural Municipality and City Budgets Act. 4. Regulatory framework for the governmental accounting reform The FMR Model has been applied to explain the different variables that have been involved in the governmental accounting change on the example of several countries (see Lüder and Jones, 2003b; Bourmistrov and Mellemvik 2005). Lüder s FMR Model (2002) uses two groups of contextual features (see figure 1): - the legal system and institutional arrangements of the process of setting accounting norms and rules; - the main stimuli that triggered the reform. Proceeding from this list of the features, we shall subsequently analyse their impact on the accounting reform in Estonian local governments. In the process of improving Estonian financial accounting and reporting regulation one can distinguish between three stages: - the introductory stage ( ); - the system-building stage ( ) and - the system improvement stage (since 2003). These stages are discussed in more detail by Haldma (2004). In what follows, within the framework of the development of Estonian accounting and reporting regulation, we will analyse the contingencies of local government accounting. 446

5 STIMULI Financial/ Economic Crisis Financial Scandal Dominating Doctrine Requirements of Public Sector Reform REFORM DRIVERS Government Commissions Professional Associations Audit Institutions Standard Setting Bodies Consulting Firms Scholar Networks Epistemic Communities POLITICAL REFORM PROMOTERS Members of Government Members of Parliament REFORM CONCEPT IMPLEMENTATION STRATEGY Authoritarian/ Participative Central Guidance One-/Multi-Step INSTITUTIONAL ARRANGEMENTS Legal System State Structure Administrative Structure Civil Service Culture STAKEHOLDERS General Public Parliament Line Departments/ Agencies Statistical Offices Lines of Influence Lines of Impact Feed Back Loops OUTCOME OF THE REFORM OR REFORM STAGE Figure 1. Financial Management Reform Process Model (Lüder, 2002, p. 12). Lüder and Jones (2003a, p. 43) pointed out that in those countries where the responsibility for national and local government accounting is split between different ministries of a government or between autonomous government levels, one can observe a diverging development of accounting systems for a longer period of time. The authors added that accounting reforms are first initiated at the local government level and are followed much later by corresponding national 447

6 governmental accounting reforms. As this evidence was based on the experience of developed countries, we will analyse the appropriateness of this statement in the circumstances of Estonia as a transition country undergoing its accounting reform. The introductory stage Estonia started its accounting reform at the beginning of the 1990s when it was still a part of the Soviet Union. In July 1990, more than a year before independence was regained in August 1991, the Regulation on Accounting was adopted by the Estonian Government. This event was the first step towards creation of marketeconomy accounting environment in Estonia. The Regulation on Accounting came into effect from 1 January In the contemporary sense, the Regulation was quite modest in content and volume, consisting of only ten pages. But the introduction of subjective valuation elements (depreciation rates, inventory valuation methods, assets valuation methods, etc. decided by companies) into the accounting practice, formation of a particular accounting policy, institution of some (unfortunately, not all of them, but under the particular circumstances this was also understandable) basic accounting principles, such as the realization principles, the matching principle, the historical cost principle appeared to be extremely radical changes in the accounting framework of Estonia. The Regulation on Accounting, section 2, stipulated that the bodies of State and local government funded from the state and local budgets are required to organize their accounting recording and reporting. Section 4 added that state and local governments have based their accounting in accordance with instructions and recommendations issued by the Ministry of Finances. As it was mentioned above, the local government reform was first completed in 1994 and therefore accounting issues were not improved substantially during the first stage of national accounting reform. The Local Government Organisation Act provides the general framework for municipal economic management and budgeting. Chapter 5 of the Act is entitled Economy and budgeting. This chapter regulated only general requirements on annual budgets, for example a requirement of a balanced budget was introduced. Any particular accounting issues were not mentioned. The Local Government Organisation Act is not reformed very often. Consequently, by the end of the first stage of Estonian accounting reform, local government accounting issues have not given much attention. The system-building stage In the middle of the 1990s, the development of the business environment in Estonia was affected by the conceptual changes and improvements in the legal system (particularly in taxation), ownership changes (the most intensive period of privatization was ) and increasing FDI inflow. Therefore, the main problem was: how to build a forward-looking and flexible accounting regulation system, which would enable Estonian accounting integration into the European accounting framework. After a comprehensive exploration, 448

7 internal discussions, careful consideration and some testing in practice, the Estonian Accounting Law (EAL) was passed by the Estonian Parliament in June 1994 and came into effect in January One of the most conceptual issues of the EAL was an attempt to create the facilities for merging the Continental European approach with the Anglo-American approach. In these circumstances the accounting framework and procedures in Estonian companies and institutions have since 1995 been legally regulated by the Estonian Accounting Law as a frame-law and by the Estonian Accounting Standards issued by the EASB. This combination had a number of advantages, in particular in the initial period of the accounting reform, speeding it up and enabling the transition process to be flexible. According to the EAL, section 2, the law applied among other institutions also to central and local government entities. They were required to comply their accounting with the general principles of the EAL (sections 1-16), but the majority of the guidelines were still issued by the Decrees of the Ministry of Finance. On the one side, section 4 of the EAL stipulated that business transaction of the institutions, which applied the EAL, are recorded on an accrual basis. On the other, these sections excluded the requirements on financial statement (were disclosured in sections 18-24). In June 1996 due the amendments to the Law, the application was expanded also to public legal persons. As it was mentioned above, according to the Local Government Organisation Act, an each municipality is an independent public legal person. The public legal persons were required to apply the entire EAL. Consequently, the accounting issues of local government entities were regulated by two different EAL sections, which caused some confusion among the local government entity officials. More detailed accounting guidelines were given by the Decrees of the Estonian Ministry of Finance. First accounting guidelines for central and local government entities were adopted in In the introduction to guidelines it was mentioned that this regulation will replace the central and local government accounting regulation issued by Decree of the Ministry of Finance of the Soviet Union in It means, that up to 1994, three years after Estonia regained its independence, the accounting issues for central and local government entities were regulated by guidelines, which originated from the period of centrally planned economy. Through the new guidelines, referring to the sections 1-16 of the EAL, it was made the first attempt to apply a business or accrual accounting model to municipal accounting. Theoretical suitability of Estonian business sector accrual model, which itself was first applied for four years, since 1991 only, was taken to the local governments as granted and therefore the change was considered to be first place technical in its nature. In the contemporary sense, the guidelines included some obscure sections and contradictions to the EAL. According to the section 7 of the guidelines, an accounting entity was required organize its accounts in such a way as to ensure relevant, objective and comparable information. At the same time all items of the financial statements were prescribed. The same section also required to prepare and publish financial statements and report on the implementation of the state budget, although the EAL did not require within the sections 1-16 of the EAL the preparation of financial statements. 449

8 The operating transactions were recorded with a mixed system, including as a cashbasis as well accrual basis principles. According to the section 8 of the guidelines, the utilization of state budgetary resources was recorded on cash-basis and accounting issues for non-budgetary resources (for example, for revenues from municipal enterprises, municipal agencies and municipal assets) on accrual basis. This mixed system was replaced by solely accrual basis through the amended guidelines in But it seems that for the governmental institutions the mixed accounting system has posed a lot of problems and confusion. This reflected also in the formats of the financial statements, required by the guidelines. For example, according to the Rural Municipality and City Budgets Act and the formats of the financial statements, the loans were recorded as revenue. Although the EAL defined the format of the balance sheet basing on decreasing liquidity (beginning from cash and ending by intangible assets), for local governments required a balance sheet and a chart of accounts basing on increasing liquidity. In addition, the financial statement formats change almost every year without giving any reason or substantial explanations. However, since 1998 the accrual-basis principles of accounting have been formally introduced. The system improvement stage The new, amended version of the EAL, which came into force in 2003, has also expanded the scope of the Law, involving in accordance with sections 2 and also central governmental institutions (the Law has applied to them since January 2004). The Ministry of Finance is responsible for the organization of state accounting and financial reporting pursuant to the EAL. This objective is conducted by the general rules for organisation of the accounting and financial reporting of the state and the state accounting entities (riigi raamatupidamise üldeeskiri) which are based on and are in compliance with the accounting principles generally accepted in Estonia and the international public sector accounting standards and in accordance with which the state accounting entities are required to organise their accounting and financial reporting. Section 36 of the EAL stipulates, that the general rules also explain and specify the requirements of the accounting principles generally accepted in Estonia as regards the state and the state accounting entities and serve as the accounting policies and procedures for the state as a whole. The existence of the general rules does not release the state accounting entities from the obligation to establish their own accounting policies and procedures. The general rules establish also the procedure, necessary for the Ministry of Finance to organise state accounting and financial reporting, for regular reporting by the state accounting entities, local governments, legal persons in public law, and other accounting entities which are not state accounting entities or companies but over which the state exercises dominant influence. 450

9 According to the section 37 and 38 the state accounting entities shall prepare their annual reports in accordance with the requirements of the EAL and the general rules. The annual accounts of the state shall contain an additional report on the implementation of the state budget, subdivided according to the state budget adopted by the Estonian Parliament (Riigikogu) for the accounting year. According to the section 41 the annual reports of local government entities shall contain an additional report on budget implementation of local government entity. Therefore, it can be concluded that beginning from 2004, the EAL covers the regulation of the accounting principles of all types of institution. The business entities and public legal persons have followed the EAL and the accounting standards for years and are accustomed to doing so. But our observations revealed that for the central governmental institutions the switch from cash-basis to accrualbasis accounting in January 2004 has posed a lot of problems and confusion. Thus the public sector has adopted the main principles and rules of private sector accounting. Our general observation showed, that the development of Estonian public sector accounting from cash-basis to accrual basis one can be regarded, in particular in the light of the New Public Financial Management Framework, as an attempt to adopt the accounting principles that applied in the private sector. Our finding supports Jorge (2005), who argued that the strong influence of business accounting seems to favoured the governmental accounting development, namely introducing accrual based accounting. Still, public sector accounting is different from private sector accounting. Public sector organizations shall prepare budget and perform within limits of approved budget. Budgeting is interrelated to accounting, because accounting gives budget execution, i.e. actual amounts of revenues and costs. According to Lüder and Jones (2003a, p. 33), budgeting and budgetary control are fundamentals of government accounting. 5. Stimuli for governmental accounting change In this section, using the theoretical framework described in section 2, we try to analyse the main set of change drivers influencing the development of local government accounting issues. According to Groot and Lukka (2000, p.6) the drivers of change are actions, development, actors and circumstances that cause, provoke or facilitate change processes to take places. In our opinion a local governmental accounting system can be regarded as an information system. Changes in organizational arrangements of the system are influenced by facilitators and barriers. We argue, basing on the analysis of the development of local government accounting, described in Section 4, that the local governmental accounting regulation (acts, laws, guidelines etc.) serves as the main facilitating condition of the change. But as it was revealed in section 4, the accounting guidelines for central and local government entities, adopted in 1995, included some unclearness and variability concerning the implementation of the accrual basis accounting procedures. Other barriers were, firstly, a weak knowledge about business accrual based accounting principles, while the accountants in local governments were used to use cash-basis and fund accounting principles for years. Secondly, proceeding 451

10 from the latter, a limited retraining of the officials of local governments and also ministries. Thirdly, a weak inspection and control from the side of Ministry of Finance. The main responsibility of local authorities was to submit the require statements, the substantial or methodical control was not arranged from the side of Ministry. An official from a local government commented: If you have submitted in proper time the statements, they were also accepted already without any control. Stimuli (motivators and catalysts) create a potential for change, and corresponding actions by individuals are needed to overcome the barriers to change. According to Lüder and Jones (2003a), stimuli are events that trigger accounting reform activities. These events can be problems facing governments, external or internal requirements, and opportunities for the governmental accounting reform. An analysis of the Estonian governmental accounting reform stimuli revealed that neither financial scandals nor fiscal/economic crises happened in Estonia to precipitate the need for a reform in governmental accounting. The first significant incentive for an accounting reform seems to have been European integration, whose influence increased since the middle of the 1990s, when Estonia submitted an application to join the European Union. Similar consequences have been pointed out by Jorge (2005) concerning an investigation of Portuguese variables and by McKendrick (2005) about Romania. These stimuli are oriented towards securing public sector reputation nationally in comparison with the business sector, internationally in order to regain an image of a modern and progressive country (see Lüder and Jones, 2003a, p. 45). As the second stimulus in Estonian circumstances we point out expanding the NPM concept, improving the efficiency and effectiveness of the public sector based on better financial and non-financial information. Since the beginning of the 21 st century the management by objectives has been an important term in Estonian public sector management. A number of authors have seen government accounting reforms as a part of NPM (see Lüder, 1994; Guthrie, 1998). On the basis of our analysis in section 4 we argue that the third very important stimulus has been the dominating doctrine about superiority of business accounting as suitable for public management (Laughlin and Pallot, 1998). An analysis of the business and governmental accounting issues during the three stages of the Estonian accounting reform revealed that during the second, system-building stage ( ) and the third, system improvement stage (since 2003) the strong influence of business accounting seems to have favoured the introduction of accrual-based financial accounting. Our interviews with financial officials in Estonian municipalities revealed the auditors requirements as the fourth group of stimuli. The auditors demands for governmental accounting change mainly result from the legal requirement to fairly present the government s financial position (Lüder and Jones, 2003a, p. 45) or a gap between this requirement and the actual financial reporting (see above section 4). In our opinion, the auditors influence on the development of local government accounting issues can be regarded as a motivator. The latter was characterized by Innes and Mitchell (1990) as drivers supporting the change in a general manner. The requirement of professional auditing of local governments in Estonia has been changing: in some periods the audit was required by the Local Governments Organisation Act, while in others it was excluded. Only since 2004, due to the requirement of the EAL, depending on the size of local government budgets, the 452

11 majority of local authorities are required to audit. It has to be noted that even before that date a relevant number of local authorities were audited in Estonia. Therefore, although Lüder and Jones (2003a, p. 46) mentioned that auditors requirements are not a significant stimulus for governmental accounting reforms in Europe, in our opinion, these requirements substantially improved the accounting procedures in Estonian local governments moving towards accrual basis and business accounting, and supported the formation and delivery of fairer and more reliable financial information. The above tendencies can mainly be observed in the second and third stage of the accounting reform. 6. Conclusions The present study, focussing on the evolution of the Estonian local government accounting framework and developments in the local government accounting system in association with improvement of the business accounting environment, revealed the following. First, the development of the Estonian local government accounting system is following the development of business accounting system, which can be divided into three different stages - the introductory ( ), system-building ( ) and system improvement stage (from 2003 onwards). Second, the Estonian local government accounting regulation, including different regulatory acts has succeeded a remarkable evolution on the way to transfer cashbasis accounting onto accrual-basis procedures. Third, to analyse the conceptual aspects of the accounting reform in Estonian local governments, we used an integrated the theoretical framework of Lüder s FMR Model describing the factors influencing governmental accounting change, and with the phased approach to the change. Our analyses revealed that the overall climate has been rather favourable for local government accounting innovations in Estonia. This also provides encouragement for future new and deeper innovations. References 1. Bailey, D. (1998), Eastern Europe: Overview, Alexander, D. and Archer, S. (eds European Accounting Guide, 3rd edn. London: Harcourt Brace & Co., pp Bourmistrov, A., Mellemvik, F. (eds) (2005), International Trends and Experiences in Governmental Accounting, Cappelen Akademisk Forlag, Oslo. 3. Chan, J. L., Jones, R. H., Lüder, K. G. (1996), Modeling governmental accounting innovations: an assessment and future research directions., Research in Governmental and Nonprofit Accounting, 9,

12 4. Chenhall, R. H., Morris, D. (1995), The impact of structure, environment and interdependencies on the perceived usefulness of management accounting systems., Accounting Review, 61, pp Emmanuel, C., Otley, D., Merchant, K. (1990), Accounting for Management Control, Chapman & Hall, 2 nd ed., London. 6. Ellwood S. M. (2002) The Financial Reporting Revolution in the UK Public Sector, Journal of Public Budgeting, Accounting and Financial Management, 14(4), pp Groot, T., Lukka, K. (2000), Cases in Management Accounting, Prentice Hall, Harlow. 8. Guthrie, J. (1998) Accrual Accounting in the Australian Public Sector, Financial Accountability and Management, 14 (1): pp Haldma, T. (2004), Development of the Estonian Accounting Policy within the European Framework., Economic Policy Perspectives of Estonia in the European Union, Berliner Wissenschafts-Verlag GmbH, Mattimar OÜ, Berlin, Tallinn, pp Innes, J., Mitchell, F. (1990), The process of change in management accounting: some field study evidence., Management Accounting Research, 1, pp Jorge, S. M. (2005), The reform of Governmental Accounting in Portugal: An Application of Lüder s Contingency Model., Bourmistrov A., Mellemvik F. (eds) International Trends and Experiences in Government Accounting, Cappelen Akademisk Forlag, Oslo, pp Laitinen, E. (2001), Management accounting change in small technology companies: towards a mathematical model of the technology firm., Management Accounting Research, 12, pp Laughlin, R. C., Pallot, J. (1998), Trends, Patterns and Influencing Factors: Some Reflections, Olson, O., Guthrie, J., Huphrey, C. Global Warning! Debating International Developments in New Public Financial Management, Cappelen Akademisk Forlag, Oslo, pp Lüder, K. (1992), A contingency model of governmental accounting innovations in the political-administrative environment., Chan, J. L. and Patton, J. M. (eds) Research in Governmental and Non-Profit Accounting, Vol. 7, pp Lüder, K. (1994), The Contingency Model reconsidered: experiences from Italy, Japan and Spain., Buschor, E. and Schedler, K. (eds) Perspectives on Performance Measurement and Public Sector Accounting, Haupt Publishers Berne, pp Lüder, K. (1998), Towards a New Financial Management System for Germany s Public sector: Local Governments Lead the Way., Olson, O., Guthrie, J., Huphrey, C. Global Warning! Debating International Developments in New Public Financial Management, Cappelen Akademisk Forlag, Oslo, pp Lüder, K. (2002), Research in Comparative Governmental Accounting over the Last Decade: Achievements and Problems, Montesinos, V. and Vela, J.M. (eds) Innovations in Governmental Accounting, Kluwer, pp

13 18. Lüder, K., Jones, R. (2003a), The diffusion of accrual accounting and budgeting in European governments a cross-country analysis., Reforming governmental accounting and budgeting in Europe, Moderne Wirtschaft, pp Lüder, K., Jones, R. (eds) (2003b), Reforming governmental accounting and budgeting in Europe, Moderne Wirtschaft. 20. Luther, R. G.; Longden, S. (2001), Management accounting in companies adapting to structural change and volatility in transition economies: A South African study., Management Accounting Research, 2001, 12 (3), pp Mattisson, O., Näsi, S., Tagesson, T. (2004), Accounting Innovations in the Public Sector. A comparative analysis of the accrual accounting reform process in the Swedish and Finnish local governments., Paper presented at EAA 27 th congress, 1-3 April, Prague, the Czech Republic. 22. McKendrick, J. Modernization of the Public Accounting Systems in Central and Eastern European Countries: The Case of Romania, Bourmistrov A., Mellemvik F. (eds) International Trends and Experiences in Governmental Accounting, Cappelen Akademisk Forlag, Oslo, pp Monsen, N., Näsi, S. (1998), The Contingency Model of Governmental Accounting Innovations: a discussion., The European Accounting Review, 7, pp Kokkuvõte MAJANDUSARVESTUSE ARENGUT MÕJUTAVAD TEGURID EESTI KOHALIKES OMAVALITSUSTES Toomas Haldma, Helje Jõgi Tartu Ülikool Siirdeperioodil on Eesti kohalike omavalitsuste (KOV) süsteem läbi teinud nii finants- kui ka administratiivreformi, millised avaldavad mõju majandusarvestuse kontseptuaalsetele aspektidele kohalikes omavalitsustes. Artikli eesmärgiks on käsitleda Lüderi (2002) poolt loodud avaliku sektori finantsjuhtimise reformi mudeli rakendamisvõimalusi selgitamaks Eesti kohalike omavalitsuste majandusarvestuse süsteemile mõjuvaid tegureid. Teoreetiliste lähtekohtadena kasutatakse avaliku sektori arvestusele suunatud sõltuvusteoorial põhinevat mudelit (Lüder 1992, 2002) ja Bailey (1998) poolt soovitatud majandusarvestuse reformi etapilist käsitlust. Sõltuvusteoorial põhinev mudel määratleb sotsiaalse, poliitilise ja administratiivse keskkonna ning selle mõju avaliku sektori majandusarvestuse arengule. Majandusarvestuse reformi etapiline käsitlus võimaldab majandusarvestuse reformi jagada etappidesse. Artiklis analüüsitakse lähtudes etapilise lähenemise teoreetilistest seisukohtadest KOV-de arvestussüsteemi arengut läbi Eesti majandusarvestuse kolme arenguetapi - 455

14 sissejuhatava ( ), süsteemi loomise ( ) ja süsteemi arenduse (alates 2003) etapi. Sissejuhatavas etapis kujundas arvestuse arengut a. vastu võetud raamatupidamise põhimäärus, mis rakendas esmakordselt turumajanduslikke majandusarvestuse põhimõtteid Eestis. Riik ja KOV-d kohustusid nimetatud põhimääruse järgi majandusarvestust pidama vastavalt rahandusministeeriumi juhenditele ja soovitustele. Üldiselt ei pööratud siiski KOV-de majandusarvestusele esimeses arenguetapis olulist tähelepanu. Süsteemi loomise etapis lähtuti a. jõustunud raamatupidamise seadust. Kuigi nimetatud seadus reguleeris ka KOV-de majandusarvestuse põhimõtteid, said KOVd täpsed juhised majandusarvestuse pidamiseks rahandusministeeriumi määrustest. Esimene rahandusministeeriumi määrus anti välja a. ja selle abil püüti esimest korda rakendada KOV-des erasektori tekkepõhist arvestusmudelit. Kuni a. kasutati avalikus sektoris majandustehingute kajastamiseks tekkepõhise ja kassapõhise arvestuse segasüsteemi, alles seejärel mindi täielikult üle tekkepõhistele arvestuspõhimõtetele. Süsteemi arenduse etapis hakkas a. kehtima raamatupidamise seaduse uus versioon, mis pöörab varasemast enam tähelepanu ka riigi tasandi majandusarvestusele. Vastavalt raamatupidamise seadusele korraldab riigi raamatupidamiskohustuslaste raamatupidamisarvestust rahandusministeerium, kes kehtestab riigi raamatupidamise üldeeskirja. Riigi ja KOV-de raamatupidamise aastaaruanded peavad raamatupidamise seaduse kohaselt sisaldama täiendava aruandena vastavalt riigieelarve või KOV eelarve täitmise aruannet. Kokkuvõttes on avalik sektor võtnud järjest enam kasutusele üldtunnustatud erasektori arvestuspõhimõtted. Peamiseks avaliku sektori ja erasektori arvestuse erinevuseks on avaliku sektori raamatupidamisarvestuse seotus eelarvestamisega. Tuginedes KOV-de majandusarvestuse arengu analüüsile võib väita, et õiguslik regulatsioon on olnud peamine majandusarvestuse muutusi motiveeriv tegur. Takistavad tegurid olid selgusetus ja ebastabiilsus tekkepõhise arvestuse sisseviimisel, KOV-de raamatupidajate piiratud teadmised tekkepõhise arvestuse põhimõtetest, vähene KOV-de ametnike koolitus ning nõrk ministeeriumite poolne kontroll. Eesti KOV-de majandusarvestuse arengut motiveerivate teguritena võib käsitleda integreerumist Euroopa Liiduga, uue haldusjuhtimise (NPM) põhimõtete rakendamist, tugevat erasektori arvestuse mõju ja audiitorite poolt esitatavaid nõudmisi. 456

HARMONIZATION OF ESTONIAN ACCOUNTING SYSTEM WITH THE EUROPEAN FRAMEWORK. Toomas Haldma Tartu University

HARMONIZATION OF ESTONIAN ACCOUNTING SYSTEM WITH THE EUROPEAN FRAMEWORK. Toomas Haldma Tartu University HARMONIZATION OF ESTONIAN ACCOUNTING SYSTEM WITH THE EUROPEAN FRAMEWORK 1. Introduction Toomas Haldma Tartu University In July 2002 the European Commission has decided to oblige all EU companies listed

More information

Better Information Economic Efficiencies Net Debt Reduction Education Financing Competitiveness Investor Confidence Tax Relief. Sustainable Growth

Better Information Economic Efficiencies Net Debt Reduction Education Financing Competitiveness Investor Confidence Tax Relief. Sustainable Growth Better Information Economic Efficiencies Net Debt Reduction Education Financing Competitiveness Investor Confidence Tax Relief Positive BENEFITS & Protective BENEFITS Sustainable Growth BENEFITS Points:

More information

Estonian Health Insurance Fund Act

Estonian Health Insurance Fund Act Issuer: Riigikogu Type: act In force from: 23.03.2014 In force until: 31.12.2016 Translation published: 02.04.2014 Amended by the following acts Passed 14.06.2000 RT I 2000, 57, 374 Entry into force 01.01.2001,

More information

Definition of Public Interest Entities (PIEs) in Europe

Definition of Public Interest Entities (PIEs) in Europe Definition of Public Interest Entities (PIEs) in Europe FEE Survey October 2014 This document has been prepared by FEE to the best of its knowledge and ability to ensure that it is accurate and complete.

More information

Regulation of the Accounting in the Czech Republic

Regulation of the Accounting in the Czech Republic International Review of Business Research Papers Vol. 3 No.4 October 2007 Pp.317-326 Regulation of the Accounting in the Czech Republic Jiri Strouhal* This paper deals with the evolution of the regulation

More information

Financial Accounting Business Management (B2)

Financial Accounting Business Management (B2) Financial Accounting Business Management (B2) My name is Marco Mongiello and I am your tutor for Accounting. My aim is to make your learning experience effective and enjoyable, i.e. I will make every effort

More information

TRANSFERRING INTERNAL CONTROL KNOWLEDGE FROM LEGISLATION TO SCHOOL MANAGEMENT: THE CASE OF SLOVENIA

TRANSFERRING INTERNAL CONTROL KNOWLEDGE FROM LEGISLATION TO SCHOOL MANAGEMENT: THE CASE OF SLOVENIA TRANSFERRING INTERNAL CONTROL KNOWLEDGE FROM LEGISLATION TO SCHOOL MANAGEMENT: THE CASE OF SLOVENIA Tatjana Horvat International School for Social and Business Studies, Slovenia tatjana.horvat@mfdps.si

More information

PROJECT: EURO-AUDITS THE EUROPEAN ROAD SAFETY AUDITOR TRAINING SYLLABUS APPENDIX E SURVEY RESULTS. October 2007

PROJECT: EURO-AUDITS THE EUROPEAN ROAD SAFETY AUDITOR TRAINING SYLLABUS APPENDIX E SURVEY RESULTS. October 2007 PROJECT: EURO-AUDITS THE EUROPEAN ROAD SAFETY AUDITOR TRAINING SYLLABUS APPENDIX E SURVEY RESULTS October 2007 A European Commission co-funded project Appendix E Survey Results Contents: Survey Results

More information

INFLUENCING CONTINGENCIES ON MANAGEMENT ACCOUNTING PRACTICES IN ESTONIAN MANUFACTURING COMPANIES

INFLUENCING CONTINGENCIES ON MANAGEMENT ACCOUNTING PRACTICES IN ESTONIAN MANUFACTURING COMPANIES University of Tartu Faculty of Economics and Business Administration INFLUENCING CONTINGENCIES ON MANAGEMENT ACCOUNTING PRACTICES IN ESTONIAN MANUFACTURING COMPANIES Toomas Haldma Kertu Lääts Tartu 2002

More information

Reporting requirements for non-reporting entities

Reporting requirements for non-reporting entities REGULATORY GUIDE 85 Reporting requirements for non-reporting entities July 2005 What this guide is about 1 This guide provides guidance on application of the reporting entity test and the reporting obligations

More information

Municipal Accounting ULB Level Reform

Municipal Accounting ULB Level Reform ULB Level Reform 1. The Reform In terms of the recommendations of the National Municipal Accounts Manual (NMAM) released by the Ministry of Urban Development MoUD, Government of India decided to introduce

More information

Economics, Law and Political Science

Economics, Law and Political Science Corporate Performance Management - Tool for New Public Management JAN FUKA, PETRA LEŠÁKOVÁ Faculty of Economics and Administration University of Pardubice Studentská 95 CZECH REPUBLIC jan.fuka@upce.cz,

More information

FACULTY OF ECONOMICS AND BUSINESS SCIENCE Elviña Campus, A Coruña Updated: october 2005 GRADUATE IN BUSINESS ADMINISTRATION AND MANAGEMENT

FACULTY OF ECONOMICS AND BUSINESS SCIENCE Elviña Campus, A Coruña Updated: october 2005 GRADUATE IN BUSINESS ADMINISTRATION AND MANAGEMENT FACULTY OF ECONOMICS AND BUSINESS SCIENCE Elviña Campus, A Coruña Updated: october 2005 Address Campus de Elviña 15071 A Coruña Tel.: +34.981.167000 (Ext.: 2409) Fax.: +34. 981.167070 Webpage: www.udc.es

More information

Accrual accounting: a key step toward better public finances

Accrual accounting: a key step toward better public finances Accrual accounting: a key step toward better public finances BRIEFING PAPER PUBLIC SECTOR APRIL 2016 HIGHLIGHTS How can accounting help governments take the right financial decisions? Complete and reliable

More information

Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course.

Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course. BA (Hons) Accounting and Finance module descriptions Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course. Year One Core Modules Economics for

More information

Lisa Evers (ZEW), Christoph Spengel (University of Mannheim and ZEW), Julia Braun (ZEW)

Lisa Evers (ZEW), Christoph Spengel (University of Mannheim and ZEW), Julia Braun (ZEW) No. 1 April 2015 ZEWpolicybrief Lisa Evers (ZEW), Christoph Spengel (University of Mannheim and ZEW), Julia Braun (ZEW) Fiscal Investment Climate and the Cost of Capital in Germany and the EU Essential

More information

CHAPTER 1 INTRODUCTION

CHAPTER 1 INTRODUCTION CHAPTER 1 INTRODUCTION 1.1 General background Fleet management has become a major focus of management over the past number of years. This is evident from the following quote from GE Capital Fleet Services:

More information

Ministry of Labour and Social Policy LAW ON VOLUNTARY FULLY FUNDED PENSION INSURANCE (189347.11)

Ministry of Labour and Social Policy LAW ON VOLUNTARY FULLY FUNDED PENSION INSURANCE (189347.11) Ministry of Labour and Social Policy LAW ON VOLUNTARY FULLY FUNDED PENSION INSURANCE 1 Table of Contents CHAPTER 1 GENERAL PROVISIONS... 3 CHAPTER 2 VOLUNTARY PENSION FUNDS... 7 CHAPTER 3 PENSION COMPANIES

More information

Department of Accounting and Finance

Department of Accounting and Finance Department of Accounting and Finance Modules, other than Introductory modules may have pre-requisites or co-requisites (please, see module descriptions below) and a student must have undertaken and passed

More information

Law 196/2009 on public sector accounting and finance in Italy: future scenarios for the public sector accounting systems

Law 196/2009 on public sector accounting and finance in Italy: future scenarios for the public sector accounting systems Law 196/2009 on public sector accounting and finance in Italy: future scenarios for the public sector accounting systems Giosuè Boldrini, Certified Public Accountant, Council Member of CNDCEC in charge

More information

SUMMARY The Estonian Military Technical School (1920 1923, 1936 1940). Surveys, memoirs and documents

SUMMARY The Estonian Military Technical School (1920 1923, 1936 1940). Surveys, memoirs and documents SUMMARY The Estonian Military Technical School (1920 1923, 1936 1940). Surveys, memoirs and documents The present publication is compiled from the memoirs and articles of officers who studied or served

More information

The Law of the City of Moscow. No. 30 dated the 30 th of June 2010. On the Chamber of Control and Accounts of Moscow

The Law of the City of Moscow. No. 30 dated the 30 th of June 2010. On the Chamber of Control and Accounts of Moscow The Law of the City of Moscow No. 30 dated the 30 th of June 2010 On the Chamber of Control and Accounts of Moscow In accordance with the federal legislation and the Moscow City Charter, this Law shall

More information

Chapter 1 Introduction to Corporate Sustainability: Enterprise- Wide Risk Management Approach to Contemporary Business Management and Organization

Chapter 1 Introduction to Corporate Sustainability: Enterprise- Wide Risk Management Approach to Contemporary Business Management and Organization Chapter 1 Introduction to Corporate Sustainability: Enterprise- Wide Risk Management Approach to Contemporary Business Management and Organization Continuous developments and changes in the business world

More information

V CONFERENCE EUROSAI - OLACEFS (Lisbon 10-11 May 2007)

V CONFERENCE EUROSAI - OLACEFS (Lisbon 10-11 May 2007) V CONFERENCE EUROSAI - OLACEFS (Lisbon 10-11 May 2007) STATE BUDGET CYCLE AND ACCOUNTS IN ITALY: TRADITIONAL AND INNOVATIVE PROCEDURES AND CORTE S INVOLVEMENTS TO SECURE FISCAL SUSTAINABILITY AND ACCOUNTABILITY

More information

Permanent Study Group Public Sector Accounting and Financial Management

Permanent Study Group Public Sector Accounting and Financial Management Permanent Study Group Public Sector Accounting and Financial Management The Permanent Study Group Public Sector Financial Management wishes to start a research programme about Public Administration and

More information

Guide to Transparency in Public Finances. Looking Beyond the Core Budget. Future Liabilities WWW.OPENBUDGETINDEX.ORG

Guide to Transparency in Public Finances. Looking Beyond the Core Budget. Future Liabilities WWW.OPENBUDGETINDEX.ORG Guide to Transparency in Public Finances Looking Beyond the Core Budget 5. Future Liabilities WWW.OPENBUDGETINDEX.ORG Introduction For more than a decade, civil society organizations around the world,

More information

Decision on recovery plans of credit institutions. Subject matter Article 1

Decision on recovery plans of credit institutions. Subject matter Article 1 Pursuant to Article 101, paragraph (2), item (8) and Article 154, paragraph (2) of the Credit Institutions Act (Official Gazette 159/2013) and Article 43, paragraph (2), item (9) of the Act on the Croatian

More information

EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA

EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA Blagica Jovanova (blagica.jovanova@ugd.edu.mk), Dushko Josheski

More information

IS ENERGY IN ESTONIA CHEAP OR EXPENSIVE?

IS ENERGY IN ESTONIA CHEAP OR EXPENSIVE? IS ENERGY IN ESTONIA CHEAP OR EXPENSIVE? Rita Raudjärv, Ljudmilla Kuskova Energy is a resource without which it is hard to imagine life in today's world. People seem to take it for granted that energy

More information

Master of Science in Accounting

Master of Science in Accounting Programme Syllabus for Master of Science in Accounting 120 higher education credits Second Cycle Established by the Faculty Board of the School of Business, Economics and Law, University of Gothenburg,

More information

Accrual Budgeting Lessons learned from the Harmonised Accounting Model (HAM) in the light of IPSAS

Accrual Budgeting Lessons learned from the Harmonised Accounting Model (HAM) in the light of IPSAS Accrual Budgeting Lessons learned from the Harmonised Accounting Model (HAM) in the light of IPSAS By Andreas Bergmann 1 The standard setting process for the IPSAS has so far mainly been based on the relevant

More information

Bachelor of Financial & Accounting Science

Bachelor of Financial & Accounting Science Investment & Portfolio Management / ACF 354 This course covers topics related to the theoretical and practical background for the investment process and the tools and methods used in evaluating financial

More information

The Positive Role of Audit in Public Debt Management in China

The Positive Role of Audit in Public Debt Management in China The Positive Role of Audit in Public Debt Management in China (for the 1 st ASOSAI-EUROSAI Joint Conference) September 2011, Turkey By Dr. DONG Dasheng, the first Deputy Auditor Introduction Since 2008,

More information

Response to the European Commission s consultation on the legal framework for the fundamental right to protection of personal data

Response to the European Commission s consultation on the legal framework for the fundamental right to protection of personal data Stockholm: Göteborg: Malmö: 105 24 Stockholm Box 57 Box 4221 Fax 08 640 94 02 401 20 Göteborg 203 13 Malmö Plusgiro: 12 41-9 Org. Nr: 556134-1248 www.intrum.se Bankgiro: 730-4124 info@se.intrum.com Response

More information

Report on impacts of raised thresholds defining SMEs

Report on impacts of raised thresholds defining SMEs Knowledge creating results--- DG Internal Market Report on impacts of raised thresholds defining SMEs Impact assessment on raising the thresholds in the 4th Company Law Directive (78/660/EEC) defining

More information

on reporting by payment institutions, small-scale payment service providers and electronic money institutions to the Czech National Bank

on reporting by payment institutions, small-scale payment service providers and electronic money institutions to the Czech National Bank DECREE No. 375/2009 Coll., of 23 October 2009 on reporting by payment institutions, small-scale payment service providers and electronic money institutions to the Czech National Bank Pursuant to Article

More information

Corporate income tax a global analysis

Corporate income tax a global analysis Understanding regional comparisons, how rates have moved over time and how statutory rates differ from the amounts actually paid. Corporate income tax a global analysis www.pwc.com/payingtaxes 2 Corporate

More information

IFMIS as a driver of change. Gert van der Linde AFTFM

IFMIS as a driver of change. Gert van der Linde AFTFM IFMIS as a driver of change Gert van der Linde AFTFM IFMIS as a driver of change Agenda Driver of what change? Financial Management Performance Linking Financial Management with Program Delivery Key Financial

More information

The CAO s Experience in Auditing Public Debt

The CAO s Experience in Auditing Public Debt The CAO s Experience in Auditing Public Debt Introduction :- The state general budget comprises of : administrative body budget, public service entity budget and local administration units budget. This

More information

INNOBAROMETER 2015 - THE INNOVATION TRENDS AT EU ENTERPRISES

INNOBAROMETER 2015 - THE INNOVATION TRENDS AT EU ENTERPRISES Eurobarometer INNOBAROMETER 2015 - THE INNOVATION TRENDS AT EU ENTERPRISES REPORT Fieldwork: February 2015 Publication: September 2015 This survey has been requested by the European Commission, Directorate-General

More information

COMPARED EXPERIENCES REGARDING PUBLIC DEBT MANAGEMENT

COMPARED EXPERIENCES REGARDING PUBLIC DEBT MANAGEMENT COMPARED EXPERIENCES REGARDING PUBLIC DEBT MANAGEMENT MIRELA-ANCA POSTOLE, RODICA GHERGHINA, IOANA DUCA, IRINA ZGREABAN ACADEMY OF ECONOMIC SCIENCES, TITU MAIORESCU UNIVERSITY BUCHAREST anca_postole@yahoo.com,

More information

3. ACCOUNTING. 3.1 Accounting Principles and Internal Controls Fund Types and Accounting Principles

3. ACCOUNTING. 3.1 Accounting Principles and Internal Controls Fund Types and Accounting Principles 3. ACCOUNTING 3.1 Accounting Principles and Internal Controls 3.1.1 Fund Types and Accounting Principles 3.1.1.10 The following principles of accounting and financial reporting are based on those set forth

More information

FLOOD DAMAGES AND TOOLS FOR THEIR MITIGATION Lenka Camrova, Jirina Jilkova

FLOOD DAMAGES AND TOOLS FOR THEIR MITIGATION Lenka Camrova, Jirina Jilkova FLOOD DAMAGES AND TOOLS FOR THEIR MITIGATION Lenka Camrova, Jirina Jilkova University of Economics, Prague, 2006, pp. 418. ISBN: 80-86684-35-0 English Summary In 1997 and 2002 the Czech Republic was heavily

More information

Public Debt and Cash Management

Public Debt and Cash Management Federation of European Accountants Federation of European Accountants Fédération Fédération des Experts des Experts comptables comptables Européens Européens Public Sector Public Debt and Cash Management

More information

CBO MEMORANDUM THE BUDGETARY TREATMENT OF AN INDIVIDUAL MANDATE TO BUY HEALTH INSURANCE. August 1994 CONGRESSIONAL BUDGET OFFICE

CBO MEMORANDUM THE BUDGETARY TREATMENT OF AN INDIVIDUAL MANDATE TO BUY HEALTH INSURANCE. August 1994 CONGRESSIONAL BUDGET OFFICE CBO MEMORANDUM THE BUDGETARY TREATMENT OF AN INDIVIDUAL MANDATE TO BUY HEALTH INSURANCE August 1994 CONGRESSIONAL BUDGET OFFICE THE BUDGETARY TREATMENT OF AN INDIVIDUAL MANDATE TO BUY HEALTH INSURANCE

More information

Copyrighted material SUMMARY

Copyrighted material SUMMARY Source: E.C.A. Kaarsemaker (2006). Employee ownership and human resource management: a theoretical and empirical treatise with a digression on the Dutch context. Doctoral Dissertation, Radboud University

More information

The Swedish Corporate Governance Model

The Swedish Corporate Governance Model 6.14 The Swedish Corporate Governance Model Per Lekvall, Swedish Corporate Governance Board Fundamentally, Swedish corporate governance resembles that of most of the industrialized world and is closely

More information

EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS)

EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) Page 2 of 26 I N D E X 1. Introduction... 3 2. Objective... 3 3. Scope... 3 4. Definitions... 4 5. Non-exchange

More information

COUNCIL OF THE EUROPEAN UNION. Brussels, 14 January 2013 (OR. en) 16977/12 Interinstitutional File: 2012/0298 (APP) FISC 183 ECOFIN 1000 OC 699

COUNCIL OF THE EUROPEAN UNION. Brussels, 14 January 2013 (OR. en) 16977/12 Interinstitutional File: 2012/0298 (APP) FISC 183 ECOFIN 1000 OC 699 COUNCIL OF THE EUROPEAN UNION Brussels, 14 January 2013 (OR. en) 16977/12 Interinstitutional File: 2012/0298 (APP) FISC 183 ECOFIN 1000 OC 699 LEGISLATIVE ACTS AND OTHER INSTRUMTS Subject: Draft COUNCIL

More information

Accruals and Cash Flows. Accrual Accounting Framework. Accrual Accounting Framework Wild, Subramanyam and Halsey, 2003, pp. 80-98.

Accruals and Cash Flows. Accrual Accounting Framework. Accrual Accounting Framework Wild, Subramanyam and Halsey, 2003, pp. 80-98. Accrual Accounting Framework Wild, Subramanyam and Halsey, 2003, pp. 80-98 Accrual Concept Accrual Accrual accounting aims to inform users about the consequences of business activities for a company s

More information

Central bank corporate governance, financial management, and transparency

Central bank corporate governance, financial management, and transparency Central bank corporate governance, financial management, and transparency By Richard Perry, 1 Financial Services Group This article discusses the Reserve Bank of New Zealand s corporate governance, financial

More information

ASSET MANAGEMENT MODEL

ASSET MANAGEMENT MODEL THE URBAN INSTITUTE ASSET MANAGEMENT MODEL FOR LOCAL GOVERNMENTS Hrvoje Bertovic, Olga Kaganova, CRE and John Rutledge, CRE I. INTRODUCTION This brochure is written for the people who work in local government:

More information

At a glance. Benefit and cost assessment

At a glance. Benefit and cost assessment www.pwc.be Collection of information related to the potential impact, including costs, of implementing accrual accounting in the public sector and technical analysis of the suitability of individual IPSAS

More information

Objective of General Purpose Financial Reporting

Objective of General Purpose Financial Reporting Statement of Accounting Concepts SAC 2 (8/90) Objective of General Purpose Financial Reporting Prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation

More information

News Flash. September, 2015. Tax guide for property investment in Hungary

News Flash. September, 2015. Tax guide for property investment in Hungary News Flash September, 2015 Tax guide for property investment in Hungary Tax guide for property investment in Hungary In our current newsletter we would like to inform you about the most important taxation

More information

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective 1. Interest on Equity and Dividends: the Brazilian perspective Brazilian companies have two main

More information

The current state of the application of international accounting standards in the Czech Republic

The current state of the application of international accounting standards in the Czech Republic The current state of the application of international accounting standards in the Czech Republic KAREL ŠTEKER, MILANA OTRUSINOVÁ Department of Finance and Accounting Tomas Bata University in Zlín Nám.

More information

APPENDIX A: COUNTRY REPORTS

APPENDIX A: COUNTRY REPORTS Austria The current conditions are that a should meet two out of the following three requirements: Balance sheet Number of Small < 7,3 mio. < 3,65 mio. 50 Medium-sized < 29,2 mio. < 14,6 mio. 250 *Austrian

More information

Develop and maintain systems of internal controls to ensure appropriate spending and to safeguard financial assets of the network.

Develop and maintain systems of internal controls to ensure appropriate spending and to safeguard financial assets of the network. Director of Finance Organization Position Title Reporting To Category Status Duty Station Closing Date Start Date Application Submission African Institute for Mathematical Sciences Next Einstein Initiative

More information

Overview of the key figures for the first half of the year

Overview of the key figures for the first half of the year Half-Year Report 2015 Q2 Revenues increase in the first half of the year by 23% EBIT increased by 1.5 million euros compared to the previous year Order book is growing Overall annual forecast remains unchanged

More information

Italy: toward a federal state? Recent constitutional developments in Italy

Italy: toward a federal state? Recent constitutional developments in Italy BENIAMINO CARAVITA Italy: toward a federal state? Recent constitutional developments in Italy 1. The federal idea in Italian history Italy became a unitary State between 1861 and 1870, assembling under

More information

Characteristics of Public Budgets in 5 Latin American Countries

Characteristics of Public Budgets in 5 Latin American Countries Characteristics of Public Budgets in 5 Latin American Countries The Latin American Network for Legislative Transparency is a network of civil society organizations in Latin America that promote transparency,

More information

IPSAS 23 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) CONTENTS

IPSAS 23 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) CONTENTS IPSAS 23 REVENUE FROM NON-EXCHANGE TRANSACTIONS CONTENTS December 2006 Paragraph Introduction... IN1 IN5 Objective... 1 Scope... 2 6 Government Business Enterprises... 6 Definitions... 7 28 Non-Exchange

More information

WHITE CLOUD AREA FIRE DEPARTMENT JOINT BUILDING AUTHORITY NEWAYGO COUNTY, MICHIGAN ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2013

WHITE CLOUD AREA FIRE DEPARTMENT JOINT BUILDING AUTHORITY NEWAYGO COUNTY, MICHIGAN ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2013 WHITE CLOUD AREA FIRE DEPARTMENT JOINT BUILDING AUTHORITY NEWAYGO COUNTY, MICHIGAN ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2013 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT 1 MANAGEMENT S DISCUSSION

More information

Vienna 2 Initiative. Working Group on the European Banking Union and Emerging Europe 12

Vienna 2 Initiative. Working Group on the European Banking Union and Emerging Europe 12 1 Vienna 2 Initiative Working Group on the European Banking Union and Emerging Europe 12 General considerations The countries of Central, Eastern and South Eastern Europe (CESEE) have today very different

More information

English Translation of Finance Companies Control Law

English Translation of Finance Companies Control Law English Translation of Finance Companies Control Law Article 1 Introductory Chapter Definitions The following terms and phrases wherever mentioned in this Law shall have the meanings assigned thereto unless

More information

Karl Bruckmeier, Gothenburg University Sweden, Human Ecology Section

Karl Bruckmeier, Gothenburg University Sweden, Human Ecology Section Karl Bruckmeier, Gothenburg University Sweden, Human Ecology Section Sustainable Coastal Zone Management from a Transdisciplinary Human Ecology Perspective Contribution for the International Autumn Academy,

More information

THE EVOLUTION AND THE FUTURE ROLE OF THE BRANCH IN DISTRIBUTION OF THE BANKING PRODUCTS AND SERVICES

THE EVOLUTION AND THE FUTURE ROLE OF THE BRANCH IN DISTRIBUTION OF THE BANKING PRODUCTS AND SERVICES Annals of the University of Petroşani, Economics, 11(3), 2011, 15-22 15 THE EVOLUTION AND THE FUTURE ROLE OF THE BRANCH IN DISTRIBUTION OF THE BANKING PRODUCTS AND SERVICES CĂTĂLIN NICOLAE BULGĂREA * ABSTRACT:

More information

IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE OF COMPANIES IGOR TODOROVIĆ 1

IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE OF COMPANIES IGOR TODOROVIĆ 1 MONTENEGRIN IMPACT OF JOURNAL CORPORATE OF ECONOMICS GOVERNANCE Vol. 9, ON No. PERFORMANCE 2 Special Issue OF COMPANIES (May, 2013), 47-53 47 IMPACT OF CORPORATE GOVERNANCE ON PERFORMANCE OF COMPANIES

More information

Fédération des Experts Comptables Européens ACCRUAL ACCOUNTING IN THE PUBLIC SECTOR. January 2007. A Paper from the FEE Public Sector Committee

Fédération des Experts Comptables Européens ACCRUAL ACCOUNTING IN THE PUBLIC SECTOR. January 2007. A Paper from the FEE Public Sector Committee Fédération des Experts Comptables Européens ACCRUAL ACCOUNTING IN THE PUBLIC SECTOR A Paper from the FEE Public Sector Committee CONTENTS Executive Summary...4 Introduction...4 Nature of this paper...4

More information

International Factors Group Model Law of Factoring

International Factors Group Model Law of Factoring Afreximbank Conference - Lusaka Regulatory and Legal Aspects of Factoring & International Factors Group Model Law of Factoring Edward Wilde Solicitor with Squire Patton Boggs Financial Services Team London

More information

Accounting and Management Information Systems Course Descriptions

Accounting and Management Information Systems Course Descriptions Accounting and Management Information Systems Course Descriptions Accounting Course Descriptions ACCT 110 Introduction to Financial Accounting This introductory course to financial accounting aims to develop

More information

STRATEGIC COST MANAGEMENT ACCOUNTING INSTRUMENTS AND THEIR USAGE IN ALBANIAN COMPANIES ABSTRACT

STRATEGIC COST MANAGEMENT ACCOUNTING INSTRUMENTS AND THEIR USAGE IN ALBANIAN COMPANIES ABSTRACT STRATEGIC COST MANAGEMENT ACCOUNTING INSTRUMENTS AND THEIR USAGE IN ALBANIAN COMPANIES Marsel Sulanjaku Lecturer at A.Xhuvani University ALBANIA Ali Shingjergji Lecturer at A.Xhuvani University ALBANIA

More information

Key Words: Introduction

Key Words: Introduction Traditionally, cash based accounting system is followed in India for budgeting, accounting and financial reporting. The system has also served the basic requirement of financial accountability of government

More information

Capital Management Standard Banco Standard de Investimentos S/A

Capital Management Standard Banco Standard de Investimentos S/A Capital Management Standard Banco Standard de Investimentos S/A Level: Entity Type: Capital Management Owner : Financial Director Approved by: Board of Directors and Brazilian Management Committee (Manco)

More information

Major reductions in taxes on alcohol beverages

Major reductions in taxes on alcohol beverages Major reductions in taxes on alcohol beverages Country: Finland Partner Institute: National Institute for Health and Welfare (THL), Helsinki Survey no: (5)2005 Author(s): Christoffer Tigerstedt, DPolSci,

More information

Training and Human Resource Development in the European Union Member States: New Practices and Innovative Trends

Training and Human Resource Development in the European Union Member States: New Practices and Innovative Trends Training and Human Resource Development in the European Union Member States: New Practices and Innovative Trends ISBN 978-90-6779-210-3 2008, European Institute of Public Administration. All rights reserved.

More information

The Open University s repository of research publications and other research outputs

The Open University s repository of research publications and other research outputs Open Research Online The Open University s repository of research publications and other research outputs The search of a new logic of public administration reforms: the case of metropolitan areas in Italy

More information

TOWN OF MANCHESTER, MARYLAND. FINANCIAL STATEMENTS June 30, 2015

TOWN OF MANCHESTER, MARYLAND. FINANCIAL STATEMENTS June 30, 2015 FINANCIAL STATEMENTS TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS REPORT... 1 MANAGEMENT S DISCUSSION AND ANALYSIS... 3 FINANCIAL STATEMENTS... 13 Government wide Financial Statements Statement of Net Position...14

More information

HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013

HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS

More information

PRC REGULATORY OVERVIEW

PRC REGULATORY OVERVIEW Our business is mainly conducted in China. The key laws and regulations regulating our business operations in China include the following: Measures on the Administration of Foreign Investment in the Leasing

More information

CITY OF COLEMAN, TEXAS FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT SEPTEMBER 30, 2014

CITY OF COLEMAN, TEXAS FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT SEPTEMBER 30, 2014 CITY OF COLEMAN, TEXAS FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT SEPTEMBER 30, 2014 Becky Roberts, CPA 104 Pine Street, Suite 610 Abilene, Texas 79601 325-665-5239 becky.roberts@rm-cpa.net

More information

7. LAW ON LOCAL SELF-GOVERNMENT FINANCING. Pursuant to Article 88 item 2 of the Constitution of the Republic of Montenegro, I hereby issue the

7. LAW ON LOCAL SELF-GOVERNMENT FINANCING. Pursuant to Article 88 item 2 of the Constitution of the Republic of Montenegro, I hereby issue the Pursuant to Article 88 item 2 of the Constitution of the Republic of Montenegro, I hereby issue the Decree Promulgating the Law on Local Self-Government Financing (Official Gazette of the Republic of Montenegro

More information

THE UNIVERSITY OF NEW SOUTH WALES

THE UNIVERSITY OF NEW SOUTH WALES THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ACCOUNTING ACCT5996 BUSINESS PROCESSES: ANALYSIS & IMPROVEMENT Course Outline Session 2, 2001 THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ACCOUNTING Session

More information

Accounting Problems of Research and Development

Accounting Problems of Research and Development Accounting Problems of Research and Development KATA T. SZILÁGYI Department of Business Economics, Institute of Economic Science Eszterházy Károly College, Egészségház u. 4, Eger 3300, Hungary szkata@ektf.hu

More information

Becoming Post-modern, Without Being Modern? Interpreting the Development of Welfare State in Estonia, Latvia and Lithuania Abstract

Becoming Post-modern, Without Being Modern? Interpreting the Development of Welfare State in Estonia, Latvia and Lithuania Abstract Becoming Post-modern, Without Being Modern? Interpreting the Development of Welfare State in Estonia, Latvia and Lithuania Abstract Prof. Dr. Anu Toots Professor of Comparative Public Policy Professor,

More information

Interest of cost management within the context of accounting system development in Romania

Interest of cost management within the context of accounting system development in Romania Interest of cost management within the context of accounting system development in Romania MARIANA RADU, VALENTIN RADU GEORGE CIPRIAN GÎJU, DANIELA ELENA NICOLAE Faculty of Economic Sciences Valahia University

More information

Session 6: Budget Support

Session 6: Budget Support Session 6: Budget Support Paper 6.1 - Introductory Paper on Budget Support [1] Introduction Budget support has become an increasingly important instrument of development assistance. It has not only received

More information

NORTHERN MICHIGAN LAW ENFORCEMENT TRAINING GROUP AUDITED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2009

NORTHERN MICHIGAN LAW ENFORCEMENT TRAINING GROUP AUDITED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2009 NORTHERN MICHIGAN LAW ENFORCEMENT TRAINING GROUP AUDITED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2009 NORTHERN MICHIGAN LAW ENFORCEMENT TRAINING GROUP TABLE OF CONTENTS Independent Auditor s Report...

More information

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks

Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks REVIEW OF THE MAIN EVENTS IN THE SPHERE OF TAXATION Lawyers of LF «Dmitrieva & Partners» have prepared the list of top news in the field of taxation for the last two weeks The State Fiscal Service of Ukraine

More information

Supplementary Information Document. The NFU Mutual Portfolio Investment Plan The NFU Mutual Stocks & Shares ISA

Supplementary Information Document. The NFU Mutual Portfolio Investment Plan The NFU Mutual Stocks & Shares ISA Supplementary Information Document The NFU Mutual Portfolio Investment Plan The NFU Mutual Stocks & Shares ISA Supplementary Information Document The NFU Mutual Portfolio Investment Plan The NFU Mutual

More information

Master of Science in Accounting

Master of Science in Accounting Programme Syllabus for Master of Science in Accounting 120 higher education credits Second Cycle Established by the Faculty Board of the School of Business, Economics and Law, University of Gothenburg,

More information

Recognised Investment Exchanges. Chapter 2. Recognition requirements

Recognised Investment Exchanges. Chapter 2. Recognition requirements Recognised Investment Exchanges Chapter Recognition REC : Recognition Section.3 : Financial resources.3 Financial resources.3.1 UK Schedule to the Recognition Requirements Regulations, Paragraph 1 (1)

More information

NERI Quarterly Economic Facts Summer 2012. 4 Distribution of Income and Wealth

NERI Quarterly Economic Facts Summer 2012. 4 Distribution of Income and Wealth 4 Distribution of Income and Wealth 53 54 Indicator 4.1 Income per capita in the EU Indicator defined National income (GDP) in per capita (per head of population) terms expressed in Euro and adjusted for

More information

Public Finance and Expenditure Management Law

Public Finance and Expenditure Management Law Public Finance and Expenditure Management Law Chapter one General provisions Article one. The basis This law has been enacted in consideration of Article 75, paragraph 4 of the Constitution of Afghanistan

More information

EBA final draft Regulatory Technical Standards

EBA final draft Regulatory Technical Standards EBA/RTS/2014/11 18 July 2014 EBA final draft Regulatory Technical Standards on the content of recovery plans under Article 5(10) of Directive 2014/59/EU establishing a framework for the recovery and resolution

More information

Accounting for Multiple Entities

Accounting for Multiple Entities King Saud University College of Administrative Science Department of Accounting 2 nd Semester, 1426-1427 Accounting for Multiple Entities Chapter 15 Prepared By: Eman Al-Aqeel Professor : Dr: Amal Fouda

More information

Law No. 82/1991 on the accounting system, republished, as further amended and completed ( Law No. 82/1991 );

Law No. 82/1991 on the accounting system, republished, as further amended and completed ( Law No. 82/1991 ); 96 Chapter 7 Accounting System 1. General The Romanian accounting system underwent continuous reform in the past years with the aim to improve, simplify and at the same time increase the accuracy and comprehensibility

More information

Financial services mis-selling: regulation and redress

Financial services mis-selling: regulation and redress Report by the Comptroller and Auditor General Financial Conduct Authority and Financial Ombudsman Service Financial services mis-selling: regulation and redress HC 851 SESSION 2015-16 24 FEBRUARY 2016

More information

TOWNSHIP OF ROLLAND ISABELLA COUNTY, MICHIGAN AUDITED FINANCIAL STATEMENTS. Fiscal Year Ended March 31, 2010

TOWNSHIP OF ROLLAND ISABELLA COUNTY, MICHIGAN AUDITED FINANCIAL STATEMENTS. Fiscal Year Ended March 31, 2010 ISABELLA COUNTY, MICHIGAN AUDITED FINANCIAL STATEMENTS Fiscal Year Ended TABLE OF CONTENTS Independent Auditor s Report.. 1 FINANCIAL STATEMENTS Government Wide Statement of Net Assets. 2 Government Wide

More information