Dimension 29.3. Accounting standards

DIMENSION MEASUREMENT GUIDANCE

29.3:1. This dimension assesses the extent to which annual financial reports are understandable to the intended users and contribute to accountability and transparency. This requires that the basis of recording the government’s operations and the accounting principles and national standards used be transparent. Higher scores require that the standards used for accounting are consistent with recognized international standards such as IPSAS. For ‘A’ and ‘B’ scores the assessment report should explain which

international standards methodology has been used and where the information on compliance with those standards is disclosed.

29.3:2. All financial reports means that financial reports must cover at least 90% of BCG expenditure. To assess ‘Most international standards’ and ‘the majority of international standards’, assessors should compare the number of standards that have been incorporated into the national standards with the total number of IPSAS standards, or other international standards.

Dimension 29.3. Scoring

Score Minimum requirements for scores
A Accounting standards applied to all financial reports are consistent with international standards. Most international standards have been incorporated into the national standards. Variations between international and national standards are disclosed and any gaps are explained. The standards used in preparing annual financial reports are disclosed in notes to the reports.
B Accounting standards applied to all financial reports are consistent with the country’s legal framework. The majority of international standards have been incorporated into the national standards. Variations between international and national standards are disclosed and any gaps are explained. The standards used in preparing annual financial reports are disclosed.
C Accounting standards applied to all financial reports are consistent with the country’s legal framework and ensure consistency of reporting over time. The standards used in preparing annual financial reports are disclosed.
D Performance is less than required for a C score.

Dimension 29.3. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last three years’ financial report. BCG.
  •  Evidence of accounting standards being used and applied; any gaps between the standards and international accounting standards are explained. 
  • Notes on the financial reports relating to the standards applied.
  • Accountant general corroborated by SAI.

 

Pillar Six: Accounting and Reporting