France’s decision to move to Accrual Based Accounting, triggered by the application of the Organic Law to the Finance Laws, has a tangible impact on political decision-making mechanisms. By adopting accounting and financial information standards derived from the private sector, it has the effect of reinforcing the economic rationality of public decisions. It makes it possible, in particular, to draw comparisons between public and private costs, comparisons that are necessary to set up any possible contract-based links with private suppliers. The move towards Accrual Based Accounting sets out to improve the information provided to the public operators. It also tends to limit the possibilities of arbitrations that are unfavourable to long-term investments and the maintenance of public assets. It gives parliaments, control bodies and citizens an appreciation of the policies being carried out, thus reinforcing the demands for the transparency of public accounts and the accountability of their managers. However, there is no getting away from the fact that it is a complex and costly reform, whose implementation requires a favourable political context and an appropriate implementation strategy.
Get full access to this article
View all access options for this article.
References
1.
Adhémar P. (2003) ‘La modernisation de la comptabilité de l’Etat en France: Etat des lieux, enjeux et perspectives’ , International Congress on Accounting Standards for Public Administrations, Ferrara, Italie, December.
2.
Australian Capital Territory Auditor General (2000) ‘Reports of the Performance Audit of the Redevelopment of Bruce Stadium’, Report 1-12, ACT Government, Canberra .
3.
Australian National Audit Office (1999) ‘The Management of Contracted Business Support Services’, Report no. 12, Canberra .
4.
Barton, A. (2000a) ‘Accounting for Public Heritage Facilities—Assets or Liabilities of the Government’ , Accounting, Auditing and Accountability13(2): 219-235 .
5.
Barton, A. (2000b) ‘Commercial-in-confidence Outsourcing Contracts and Accountability in Public Sector Activities’, School of Business and Information Management,Australian National University .
6.
Barton, A. (2003) ‘The Use and the Abuse of Accounting in the Public Sector Financial Management Reform Process’, National Institute of Economics and Business,Australian National University , June.
7.
Beffa, J.-L. (2005) ‘Pour une nouvelle politique industrielle’, Rapport au Président de la République, Janvier.
8.
Bezançon, X. (2004) Dans les pas des bâtisseurs. Paris: Timée-Editions.
9.
Bignon, V., Biondi, Y. and Ragot, X. (2004) ‘Une analyse économique de la ”juste valeur”’, Centre Saint-Gobain pour la Recherche en Economie, Prisme no. 4, mars.
10.
Bureau du Vérificateur Général du Canada (2001) ‘La stratégie d’information financière: L’état de préparation de l’infrastructure’, in Rapport de la Vérificatrice Générale, décembre.
11.
Bureau du Vérificateur Général du Canada (2002) ‘La gestion et le contrôle financiers au gouvernement fédéral’, in Rapport de la Vérificatrice Générale, décembre.
12.
Collett, P. , Godfrey, J. and Hrasky, S. (1998) ‘Standard-setting in Australia: Implications of Recent Radical Reform Proposals’ , Australian Accounting Review8(2): 9-17 .
13.
Colman, R. and Fletcher, D. (2003) ‘Vers une meilleure gestion publique’/‘Slow Change to Better Governance’, CMA Management, Certified Management Accountants, Canada , June-July.
14.
Davies, N. (2004) ‘La comptabilité et la budgétisation patrimoniales au ministère britannique de la Défense’, Ecodef, Bulletin de l’économie de la Défense, no. 34, juillet.
15.
European Commission (2005) ‘New Accounting System: Better Control over European Taxpayer’s Money’, Press Release, MEMO/05/27, Brussels , January.
16.
Gates, S. M. , Robert, A. A. and Elliot, M. N. (1997) ‘Outsourcing of DoD Commercial Activities: Impact on Civil Service Employees’, Rand Corporation , MR-866-OSD.
17.
Government Accounting Standard Board (1987) ‘Concept Statement no. 1: Objectives of Financial Reporting’, Norwalk , May.
18.
Guthrie, J. (1998) ‘Accrual Accounting in the Australian Public Sector’ , Financial Accountability and Management14(1): 1-19 .
19.
Guthrie, J. , Olson, O. and Humphrey, C. (1999) ‘Debating Developments in New Financial Management: The Limits of Global Theorising and Some New Ways Forward’ , Financial Accountability and Management15(3-4): 209-228 .
20.
Guthrie, J. , Day, R. and Ryan, C. (2003) ‘Accounting Standards in the Australian and New Zealand Public Administrations: Experience and Perspectives’ , International Congress on Accounting Standards for Public Administrations,Ferrara, Italy, December.
21.
Hepworth, N. (2004) ‘Government Budgeting and Accounting Reform in the United Kingdom’ , Models of Public Budgeting and Accounting Reforms, OECD Journal on Budgeting2, supp. 1, August: 115-162 .
22.
Hood, C. (1995) ‘The “New Public Management” in the 1980s: Variations on a Theme’ , Accounting, Organizations and Society20(2/3): 93-109 .
23.
Kydland, F. E. and Prescott, E. C. (1977) ‘Rules Rather than Discretion: The Inconsistency of Optimal Plans’ , Journal of Political Economy85(1): 473-491 .
24.
Likierman, A. (2001) ‘From Planning to Implementation: The New UK Central Government Financial Framework’ , Public Money and Management21(1): 53-56 .
25.
Loweth, D. (2003) ‘Accounting Standards in the UK Public Administrations: Experiences and Perspectives’ , International Congress on Accounting Standards for Public Administrations,Ferrara, Italy, December.
26.
Lüder, K. (1994) ‘The ”Contingency Model” Reconsidered: Experiences from Italy, Japan and Spain’, in E. Buschor and K. Schedler K (eds) Perspectives on Performance Measurement and Public Sector Auditing, pp. 1-16. Berne: Paul Haupt Publishers .
27.
Mackinac Center for Public Policy (1999) ‘Privatization Fundamentals: Accounting for Privatization’, Midland, MI , February.
28.
Marty, F., Vidal, L. and Voisin, A. (2004) ‘La réalisation des actifs immobiliers publics: Quelles modalités juridiques et financières?’, Les Petites Affiches 254, décembre.
29.
Matheson, A. (2004) ‘Better Public Sector Governance: The Rationale for Budgeting and Accounting Reform in Western Nations’ , Models of Public Budgeting and Accounting Reforms, OECD Journal on Budgeting2, supp. 1, August: 37-50 .
30.
Micallef, F. and Peirson, G. (1997) ‘Financial Reporting of Cultural Heritage, Scientific and Community Collections’ , Australian Accounting Review7(1): 28-44 .
31.
National Audit Office (2003) ‘Managing Resources to Deliver Better Public Services’, HC 61, session 2003-2004, December.
32.
Newberry, S. (2002) ‘The Conceptual Framework Sham’ , Australian Accounting Review12(3): 47-49 .
33.
Pallot, J. (2004) ‘Government Accounting and Budgeting Reform in New Zealand’ , Models of Public Budgeting and Accounting Reforms, OECD Journal on Budgeting2, supp.1, August: 163-186 .
34.
Shand, D. (1989) ‘Public Sector Accounting Standard Process on Implementation’ , Australia Accounting Research Journal2(2): 18-25 .
35.
Trosa, S. (2004) ‘L’évaluation des politiques publiques’, Note de benchmarking international, Institut de l’Entreprise, décembre.
36.
Trosa, S., Marty, F. and Voisin, A. (2004) ‘La construction des méthodes de comparaison de coûts public-privé: les enseignements des expériences étrangères’, Politiques et Management Public 22(3): 43-62.
37.
US Government Accountability Office (2005) ‘Fiscal Year 2004. US Government Financial Statements: Sustained Improvement in Federal Financial Management is Crucial to Addressing our Nation’s Future Fiscal Challenges’, Report GAO-05-284T, February.
38.
Wynne, A. (2004) ‘Is the Move to Accrual Based Accounting a Real Priority for the Public Sector Accounting?’, Association of Chartered Certified Accountants, London , January.
