Some Algebra of Fiscal Transparency: How Accounting Devices Work and How to Reveal Them

September 1, 2012

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Format: Chicago

Timothy C Irwin. Some Algebra of Fiscal Transparency: How Accounting Devices Work and How to Reveal Them, (USA: International Monetary Fund, 2012) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Accounting devices that artificially reduce the measured fiscal deficit can be analyzed as transactions involving unrecognized assets and liabilities. Different accounting systems recognize different sets of assets and liabilities and are thus vulnerable to different sets of devices. Some devices can be revealed by moving progressively from cash accounting to modified accrual accounting to full accrual accounting. Revealing all would require the publication of extended fiscal accounts in which all future cash flows give rise to assets or liabilities.

Subject: Accrual accounting, Currencies, Economic and financial statistics, Financial statements, Fiscal accounting and reporting, Government finance statistics, Money, Public financial management (PFM)

Keywords: Accounting device, Accounting devices, Accounting rule, Accrual accounting, Balance sheet, Budget deficits, Currencies, Deficit device, Financial statements, Fiscal accounting and reporting, Government accounting, Government finance statistics, Present value, Recognized assets, Surplus, Targeted surplus, WP

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2012/228
Stock No:

WPIEA2012228
ISBN:

9781475510577
ISSN:

1018-5941

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