A Discussion on the Accounting and Budgeting Systems of Korean Local Governments - An Appraisal"s Perspective

A Discussion on the Accounting and Budgeting Systems of Korean Local Governments

  The purpose of governmental accounting and budget is to insure that the public revenues are lawfully and honestly collected, held, and expended. While the rules controlling accounting must be neutral as to fiscal policy, the budgeting system is almost completely policy-oriented. This study examines the accounting and budgeting systems of Korean local governments from an appraisal"s perspective. The kinds of accounting system - cash basis, accrual basis, and modified accrual basis, - and financial reporting pratice of Korean local governments are analyzed. The study also shows the problems and constraints of the budget analysis, appropriations, revenue system of Korean local government finance, and hence suggests more accurate and reliable budgetary accounting for Korean local governments. In a good budgetary accounting, the accounting system should provide the basis for appropriate budgetary control, and budgetary comparison should be included in the appropriate financial statements.