Authors: Aimilia Zoumi

Title: Implementation of abroad Accounting Framework of the General Government as a means of reforming the Financial Sector

Abstract

Abstract

The government traditionally uses an input-based budget system. However, these systems may not provide the most reliable financial information required for a country to function effectively. For this reason, many European countries have turned to a bibliographic approach, i.e., accrual-based accounting in the public sector.

The Implementation of the General Accounting Framework of the General Government consists of a double-entry accounting system based on ESA (European System of Accounting) composed of the European Accounting System, helping the Member States of the European Union to have a fast and functional accounting capture.

The implementation of the Νew General Government Accounting Framework as a means of reforming the Financial Sector, is an important tool for decision-making and policy-making, allowing access based on this reform of the Government presenting reliable and valid information regarding the Percentage control of expenditures or projected expenditures in Education, Health and the Armed Forces. In addition, it is possible to control the financial data of an entity, through the ERP system (Enterprise Resource Planning) by capturing certain data for comparison purposes.

So far, the IASs are applicable in the Private Sector. With the arrival and implementation of the Νew General Government Accounting Framework as a means of reforming the IPSAS Financial Sector (International Public Sector Accounting Standards) one aims to meet the needs of the Public Sector. Its introduction is important, as it covers the executives of the financial services of the Public Entities, because their every action can be supported in the light of a specific IPSAS and not based on their experiences or the directions they received from an official of the Ministry. With its implementation it has specific rules, and the controls will be based on IPSAS.

The IPSAS (International Public Sector Accounting Standards), in addition, given the opportunity to the executives of the financial services to have new opportunities for development, as the current employees in the financial services, it is necessary to pay necessary attention to what is mentioned in PD 54/2018 in relation to IPSAS and the methods of recording in the financial statements and reports. PD 54/2018 aims at the recording of financial reports and statements with a specific methodology, and introduces new reports of financial methods and statements that until now existed only in Private entities. In conclusion, we are part of a regulatory framework that presents labyrinthine opportunities, leading to the certification of public executives and organizations and regarding the fact that the financial services of the state will consist of specialists in these systems, where new professional opportunities are created for young employees entering the industry, at the same time stopping the pressure and disagreements from the administrations.

At this point, it is worth emphasizing that the new concepts in the Public Sector, Transparency, Commitment, are not abolished by Presidential Decree, on the contrary, they are strengthened.

This text examines the implementation of the General Accounting Framework of the General Government as a means of reforming the Financial Sector, in relation to all the labyrinthine reforms, which could possibly have taken place before its imposition by the European Union.

Keywords:

Accounting Reform, General Government, Financial Statements, Public Financial Sector