On quasi-denting points, denting faces and the geometry of the unit ball ofd(w, 1)

Governmental Accounting in Spain and the European Monetary Union: A Critical Perspective

During the last twenty-five years, the changes in Spanish accounting have been radical and significant, especially since 1986 when Spain joined the European Union. Those changes were first introduced in business accounting, following the patterns of the Fourth Directive, but governmental accounting has also been affected by structural reforms that have modified the financial reporting system, the accounting standards and the accounting principles to be applied. However, the governmental accounting system needs further improvement, particularly given the EMU framework and the relationship between governmental accounting and national accounting.

Developments in financial information by local entities in europe

In recent years, most Organisation for Economic and Cooperation Development (OECD) countries have brought in important reforms into their public accounting systems with the objective of both improving public service management and increasing the transparency and accountability of governments. Reforms of government accounting share a common direction towards the implementation of accrual-based accounting systems. In this context, this paper presents the situation of local government accounting systems in European countries with the aim of showing the degree of uniformity/ heterogeneity that currently exists among the countries considered and why differences persist nowadays, trying to classi…

International experiences in whole of government financial reporting: lesson-drawing for Spain

This article focuses on whole of government accounts from a comparative perspective and identifies key lessons for Spain and other European countries with a continental accounting system. The authors examine the issues involved in whole of government financial reporting in New Zealand, Australia, the UK and North America. They conclude that whole public sector consolidated accounts are not currently feasible in Spain and that consolidation should start at each level of government.

The Application of the IPSAS in Spain

Governmental accounting was adapted to IPSAS in Spain in 2010, following the reform in the business accounting system to adapt it to IFRS. However, the budget maintains the modified cash criteria and there is an integrated system that includes financial and budgeting accounting. This chapter analyses the normative process and the main challenges and benefits that the new system has had at the three levels of government: central, regional, and local. In order to understand the experience of practitioners, a survey for accountants and financial directors has been carried out at each government level. The results show that budgetary reporting is considered still more useful than accrual financ…

An example of creative accounting in public sector: The private financing of infrastructures in Spain

Abstract This paper analyses some proposals for private financing of public works having emerged in Spain in recent years. We show that all the new financing methods assessed are incorrectly named as “private”, for the payments are finally made by the Government by means of its budgetary resources. A deferral of accounting and budgetary recognition of these transactions, together with a false disclosure in financial statements of the debt connected with the projects, are the main reporting consequences of the new funding methods. In short, it is a clear example of “creative accounting” with the aim of meeting the convergence criteria imposed by the European Union.

Comparative Analysis Between Portugal and Spain

This chapter comparatively analyzes Portugal and Spain in relation to the implementation of the IPSAS-based accounting system as two European continental countries embedded in the Napoleonic administrative tradition and considered “latecomers” in the NPM reforms. It adds knowledge about the differences in the harmonization process and in the operationalization of the new accounting system in these particular contexts. Main findings show that IPSAS and the IFRS-based business accounting system have been important references for the new public sector accounting system in both countries. On the other hand, although Spain is more experienced in operationalizing the new IPSAS-based accounting sy…

Towards Performance, Quality and Environmental Management in Local Government: the Case of Spain

Abstract The search for improvements in the management and quality of public services seems to be a constant in all public administrations, and there is an ever-increasing use of management techniques and models from the business sector. The aim of this paper is to show which management systems are being used by Spanish local governments to improve their management in terms of economy, quality and the environment. Our analysis is based on a questionnaire sent to Spanish local governments about the tools they use and the factors that influence their implementation. The results show that more efforts are necessary to implement performance measurement and total quality management, but they als…

A Framework for Comparing Financial Sustainability in EU Countries: National Accounts, Governmental Accounting and the Challenge of Harmonization

The information prepared in accordance with the national accounts and public finance statistics criteria plays a decisive role in evaluating and comparing the financial sustainability of governments in the European Union (EU). As national accounts are prepared on the basis of information generated by governmental reporting systems, the elaboration of the information requires adjustments due to the lack of comparability of accounting systems. The chapter contains an analysis of the main differences between the two systems and the adjustments required, as well as their importance for EU countries. It includes a study of the level of correlation between the size of the adjustments and the acco…

La información no financiera en el sector público : alternativas, tendencias y oportunidades

In recent years, different non-financial information models have arisen, both in the private and public sectors, trying to complete the traditional financial reports prepared by companies and public administrations. The fundamental objective of these models has been to satisfy the interest of the stakeholders, which goes beyond the numbers included in the balance sheet and the income statement. In the case of the public sector, this is coupled with the discontent and distrust of citizens towards politicians and administrators of institutions, which makes it necessary to emphasize tools and strategies that can improve the transparency and accountability of administrations and restore citizen…

Comparative Analysis of Governmental Accounting Diversity in the European Union

Abstract Comparability of governmental financial reporting in the EU presents important problems, as long as the preparation of budget information is not harmonized and National Accounts works as the only reference to verify compliance with stability objectives. Understanding the differences between the magnitudes indicative of budgetary discipline and the diversity of accounting policies is of paramount importance, especially for the Eurozone. This paper quantifies and analyzes the differences between financial and budgetary reporting policies of EU members, identifies the main factors that determine their diversity and analyzes the results in light of the different traditions of public ad…

From Rhetoric to Practice: The Case of Spanish Local Government Reforms

This paper aims to explore what performance management tools are implemented in practice in Spanish local governments and whether they have led to an improvement in public management and accountability. We also analyse the usefulness of performance reporting, comparing it with that of accrual financial reporting. The results show that most of the entities that have introduced performance indicators do not use them for decision-making or accountability. After two decades of reforms in financial and management systems, financial directors still consider that budgetary reporting is the most useful, basically because the control of expenditure is still based on the budget.

Non-financial reporting in the public sector: alternatives, trends and opportunities

In recent years, different non-financial information models have arisen, both in the private  and  public sectors, trying to complete the traditional financial reports prepared by companies and public administrations. The fundamental objective of these models has been to satisfy the interest of the stakeholders, which goes beyond the numbers included in the balance sheet and the income statement. In the case of the public sector, this is coupled with the discontent and distrust of citizens towards politicians and administrators of institutions, which makes it necessary to emphasize tools and strategies that can improve the transparency and accountability of administrations and restore citiz…

Implementing Performance Reporting in Local Government: A Cross-Countries Comparison

ABSTRACTProviding information on economy, efficiency, and effectiveness is one of the most important innovations in local government management, with performance reporting emerging as a new component for accountability and decision-making. This article compares 17 countries to ascertain whether there is convergence between them, studying key issues in the implementation of performance reporting by local governments. It also identifies some lessons that can be of use to countries that want to implement or improve performance reporting systems. Findings show that there is no convergence in practice or results, and that institutional factors influence the implementation of performance reportin…

Public Financial Management Reforms: The Role of Ipsas in Latin-America

Summary During the last 30 years, many public administration reforms promoted by New Public Management have been undertaken. These reforms have spread to Latin-American countries and include changes in governmental accounting systems, where the implementation of International Public Sector Accounting Standards (IPSASs) has been a stimulus for modernization. This article aims to clarify the situation of IPSASs implementation in the Latin-American context as well as the stimuli for and effects of their implementation. The analysis shows that there is an emerging international trend to adopt IPSASs in Latin-American countries although at the same time, there are evident obstacles to achieving …

Are Citizens Significant Users of Government Financial Information?

This article reports on the use that the public makes of the budgetary and financial reporting produced by Spanish local authorities. The authors show financial reporting influences voting behaviour. Although citizens cannot decide how much tax they have to pay or the volume or quality of the services, they can control public management when it comes to election time. Accounting information can reflect the results of public policies and consequently serve as a vehicle for communicating the economic effects of political management. The authors make a strong case for more ‘popular’ financial reporting so that government accounts can be understood and properly used by non-specialists.