Importance of Financial Accounting of Government Affairs in World and Research Paper

richness of Financial Accounting of Government Affairs in World and More Specifically in Africa - interrogation Paper ExampleGovernment accounting system is the process that encompasses recording, analysis, classification, summary, communication, and interpretation of financial info about brass conduct in financial domain in aggregate. It is detailed reflection of transactions and other economic events involving the receipt, payments, spending, transfer, usability and disposition of assets and liabilities (Inter home(a) Federation of Accountants, 2000). 1.2 Purpose of Government Accounting Government disclosure in accounting provides citizen say and reasoning for the raising of funds from public and donors and domains where the said amount is made useful with its cost and benefits information also exportable from such statements. Government accounting is also an important source of information for national and international investors about how the economy is being run based on internal revenues, local or international debts. Information disclosed in government accounting statements are fulfillment of their right to live about the government strategy regarding the accounting and finance of the country (GASB 2006, p. 5). Government accounting, concisely, is required to serve the pastime three purposes based on their priority (Chan, 2003) BASIC PURPOSE Basic purpose of government accounting is to prevent and detect public treasury from corruption and graft. Citing report by the International Monetary shop (IMF) and the International Development Association, Thomas (2001, p. 38) mentioned that countries with heavy debt and poor state of economic stability lack the practices and procedures necessary for budgeting, monitoring, and insurance coverage on the use of public resources. INTERMEDIATE PURPOSE Intermediate purpose of government accounting is to check into the robust and thorough financial management of public resources through budget planning and presenting actual activities. say PURPOSE The advance purpose of government accounting is to help government ensure its accountability to public. To chance upon this purpose it is required to have efficiency on three levels accountability of the bureaucracy to the chief administrator, of the executive to the legislature, and of the government to the people. Transparency in government accounts serves to ensure efficiency in economy and a artillery unit against government theft and frauds. Accounting information fag end be used to monitor and enforce the terms of economic, social and political contracts when government conduct any market transaction its information from financial statements can be used for economic accounting of government. Similarly, when government levies any tax to finance its budgetary needs, expound regarding its need and benefit can be assessed for political accounting of government (Chan, 2003).Hence, accounting for government is more(prenominal) for ac countability as it involves public resources. Acknowledgment of the importance of government