H83 - Public Administration; Public Sector Accounting and AuditsReturn

The paper deals with the basic differences in the definition of fixed assets in Czech accounting legislation and International public sector accounting standards. Since 2009, the Czech accounting reform of the public sector has been in progress with the aim of establishing transparent accounting rules built on an accrual basis. At the same time International public sector accounting standards have already provided such rules in the international environment. The aim of this paper is to identify and subsequently compare the basic methodological elements that distinguish those different concepts.

The article deals with the extent of using of accrual based financial reporting in public sector of EU member states. The extent is expressed by the number of member states on the one hand and monetarily through budgetary expenditure on the other hand. Besides, the article describes the current attitude and actions of European institutions to introduce the accrual basis in the public sector at EU level. At the same time the article discusses the specific possibilities of implementation of accrual based accounting with the emphasis on introducing the principles based on International Public Sector Standards (IPSAS).

The system of self-governing professions through the chambers pertain the performance of highly skilled occupations associated with personal responsibility and professional accountability. Such professions must be performed with qualified supervision to prevent damages to property or health. Therefore, the role of professional chambers is simply irreplaceable. Chambers are gatekeepers over access to such professions and they are responsible over exercise of the profession and set standards and rules for carrying out best practices. Through their codes of conducts they supervise a compliance of their members with ethical standards. Moreover, chambers are important components of liberal democracies and fulfil the myriad of functions attributed to civil society. Chambers therefore do (and should) mainly act in accordance with public interests. In the Czech Republic currently there are two types of professional associations; chambers with a compulsory membership and chambers with a voluntary membership. However, only chambers with compulsory membership have the opportunity to punish its members for violations of professional and ethical standards.

As governmental accounting standards have developed, the complexities of preparing financial statements for governmental entities have greatly increased. Providing meaningful financial information to a wide range of users is not an easy task. Adding to these challenges, the Governmental Accounting Standards Board (GASB) recently introduced sweeping changes to the governmental financial reporting model. Currently, governmental accounting standards are established by the GASB. The first of several collections of municipal accounting standards issued by the National Council on Governmental Accounting (NCGA) in 1934 became known as the "blue book". The GASB has completed its new model for financial reporting by governments that results in a radically different look to governmental financial statements from those of the past. The need for separate financial reporting standards for governments depends on the identities of the groups of users of the financial statements of state and local governments, the objectives of these readers and users, and the overall objectives of governmental financial reporting. Financial reporting should help users assess whether current-year revenues are sufficient to pay for the services provided that year and whether future taxpayers will be required to assume burdens for services previously provided.