This time we will discuss what is meant by Government Accounting and What are examples of Government Accounting? When a government wants to create good governance (good governance),The government needs adequate information on the management of financial assets and resources that can support transparency and accountability in their management.
The following explains the understanding of government accounting, as well as the role of government accounting and the characteristics of government accounting.
The benefits of government accounting are usually more emphasized in recording, implementing the State budget and reporting its realization. Because of its function in such a way it can also be called budget accounting.
Table of contents :
Understanding Government Accounting
According to Baswir
According to Robert J. Freeman
Role of Government Accounting
Characteristics of Government Accounting
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Understanding Government Accounting
Government Accounting
Government accounting is a type of accounting that is carried out by government organizational units. And the definition of government accounting according to Arifin Sabeni and Imam Ghazali is as follows:
In the world of government accounting, data is used to provide information about economic and financial transactions.
According to Baswir
The definition of government accounting is “government accounting (including accounting for non-profit institutions)”.
In Government Regulation Number 24 of 2005 concerning Government Accounting Standards Article 1 paragraph 5 defines SAP, namely as follows:
The Government Accounting System is a manual or computerized procedural activity starting from the process of data collection, recording, summarizing and reporting of financial positions and government financial operating agencies.
According to Robert J. Freeman
“Integral branch of the accounting discipline. which was founded on the basic concepts and corvention that underlie overall accounting disciplines and share much about the characteristics of commercial accounting ”.
Accounting which complements the concept of accounting disciplines that can underlie the accounting discipline as a whole and can separate various characteristics from business accounting.
Also Read: Examples of Bank Reconciliation Questions
Role of Government Accounting
Accountability To account for the management of resources and implementation of the policies entrusted to the reporting entity to arrive at the objectives set periodically.
Management Assist customers to evaluate the implementation of activities of a reporting entity in the reporting period so as to facilitate the planning, management and control functions of all activities, liabilities and equity of government funds for the benefit of the public at large.
Transparency, Providing open and honest financial information to the public based on the consideration that the public has the right to be able to know openly and thoroughly the responsibility of the government in managing the resources that have been entrusted to it and its compliance with laws and regulations.
Intergenerational Equity (Intergenerational Equity) Helping customers to find out the adequacy of government revenues in the reporting period to be able to finance all allocated expenditures and whether future generations are assumed to be part of the burden of these expenses.
Characteristics of Government Accounting
The government is not profit-oriented so that in government accounting there is no income statement and related accounting treatments.
The government books the budget when it is booked. The budget is an important thing for the government because it is the basis for implementing activities.
In government accounting it is possible to use more than one type of fund. The transaction volume of each type of fund in government accounting is quite large, so it is necessary to establish a separate fund.
Government accounting will record capital expenditures such as for building buildings or procuring vehicles in the estimated balance sheet and operating results.
Government accounting is very rigid because it only depends on laws and regulations.
Government accounting is unfamiliar with estimates of capital and retained earnings on the balance sheet ”.
