• Register
Return to: Home > News > Standards > More than 75% of governments still use cash accounting: PwC

More than 75% of governments still use cash accounting: PwC

by Daniel Milroy Maher

Only 24% of governments globally use accrual accounting, according to a recent survey by PwC.

The Big Four firm found the majority of governments still rely on cash accounting, which has been the primary method used by the public sector for many years.

"This form of accounting - which is based on cash payments and receipts being recorded as they occur - fails to capture information on public sector assets and liabilities and therefore presents a very short-term view of public finances," according to PwC.

PwC global leader Jan Sturesson said that there is a real need for more solidity and transparency in government reporting, "And this can only be fully achieved by applying accrual accounting".

Sturesson also said that by applying accrual accounting, "governments demonstrate their commitment to achieving greater transparency and accountability, and also to producing better information for decision-making".

Despite the low percentage of governments currently utilising the accrual method, the PwC report, Momentum growing for better public accounting, revealed that "37% of the surveyed governments plan to accrual accounting in the next five years, bringing the total adoption rate to 63%".

Africa is due the biggest shift, with 11 countries transitioning to the new method, closely followed by Asia with 10, and Latin America with 8.

PwC conducted its survey in more than 100 countries.

Related links
PwC report: Momentum growing for better public accounting
PwC

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.