THE USE OF ACCRUAL-BASED ACCOUNTING IN GOVERNMENT AGENCIES

Today, in addition to developed countries, developing countries are also moving from cash accounting to accrual accounting. Due to the lack of transparency in the use of public resources, cash-based accounting is not responsive to the main users of financial reports of the public sector. Therefore, the more accurate planning and evaluation of the costs and revenues can be achieved by choosing the right accounting system (accrual-based), in addition to increasing the government accountability regarding the use of resources from the general budget. In Iran, accounting reports are prepared in the form of financial statements and subtraction of the budget by government agencies and they will be first presented to the Treasury and Supreme Audit Court and finally to the government and parliament in order to show the next year policies of the performance-based budgeting. Thus, the establishment of the performance-based budgeting system will be followed by promotion of useful information and financial transparency in addition to the increased regulatory and management supervision.

cash-based accounting, accrual-based accounting, budget, performance budgeting, users