Why We Need Accrual Accounting in Washington

Arthur Andersen's 1975 report, entitled Sound Financial Reporting in the Public Sector, pointed out that that a 1956 law required all government agencies to prepare business-type, accrual-basis financial reports. Subsequent Arthur Andersen reports listed the economic and financial reasons for p...

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Bibliographic Details
Published inThe journal of government financial management Vol. 63; no. 1; p. 44
Main Author DioGuardi, Joseph J
Format Journal Article
LanguageEnglish
Published Alexandria Association of Government Accountants 01.04.2014
Subjects
Accountability
Accounting records
Accrual basis accounting
Advantages
Appropriations
Bailouts
Budget deficits
Budgets
Chief financial officers
Committees
Consolidated financial statements
Debt management
Deficit financing
Financial management
Financial reporting
GNP
Governmental accounting
Gross National Product
National debt
Public sector
Taxation
Treasuries
United States > US
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Summary:Arthur Andersen's 1975 report, entitled Sound Financial Reporting in the Public Sector, pointed out that that a 1956 law required all government agencies to prepare business-type, accrual-basis financial reports. Subsequent Arthur Andersen reports listed the economic and financial reasons for public sector accrual accounting. It is past time for the US government to adopt accrual-based accounting standards similar to those of America's private sector, as mandated by the Securities and Exchange Commission for publicly-traded companies. And, they should be applied to all important financial and accounting functions in the federal government -- budgeting, preparation of annual financial statements, and evaluating performance at the department and agency levels of the US government. In implementing accrual accounting at all levels of government, Congress will validate the recommendations of Arthur Andersen & Co, the firm that led the accounting profession as the first public advocate for financial accountability in the public sector.
ISSN:1533-1385