Public Sector Accounting System in India- A Study

Abstract

Public Sector Accounting is the process of recording, analyzing, classifying, summarizing, communicating and interpreting financial information of Government organization. Present Government Accounting System is primarily based on Cash basis of accounting. It is conducted by Government Accounting Rules, 1990 (GAR) framed under article 150 of the Constitution of India. GASAB has developed accounting standards under cash basis known as Indian Government Accounting Standards (IGAS) for the existing accounting system, and standards for accrual basis under Indian Government Financial Reporting Standards (IGFRS). Regarding the various reforms, Many State Governments have agreed in principle to introduce accrual accounting system in their Government organizations. Most of the developed countries have used accrual basis of accounting in their Government organizations. We can say that if the government is adopting accrual basis of accounting in a phased manner over a span of 10 years, it is useful for all the stakeholders in the country.