Importance of Financial Accounting of Government Affairs in World and Research Paper

Importance of Financial Accounting of Government Affairs in World and More Specifically in Africa - Research make-up ExampleGovernment news report is the process that encompasses recording, analysis, classification, summary, communication, and interpretation of financial information about authorities conduct in financial domain in aggregate. It is particular reflection of transactions and other economic events involving the receipt, payments, spending, transfer, usability and disposition of assets and liabilities (International Federation of Accountants, 2000). 1.2 Purpose of Government Accounting Government disclosure in accounting provides citizen evidence and argument for the raising of funds from public and donors and domains where the said amount is made useful with its cost and benefits information in addition exportable from such secernatements. Government accounting is also an important source of information for national and outside(a) investors about how the economy is being run based on internal revenues, local or international debts. Information disclosed in government accounting statements are fulfillment of their right to know about the government strategy regarding the accounting and finance of the rustic (GASB 2006, p. 5). Government accounting, concisely, is required to serve the following three purposes based on their priority (Chan, 2003) BASIC PURPOSE Basic purpose of government accounting is to foreclose and detect public treasury from corruption and graft. Citing report by the International Monetary Fund (IMF) and the International Development Association, Thomas (2001, p. 38) mentioned that countries with heavy debt and poor state of economic stability lack the practices and procedures necessary for budgeting, monitoring, and reporting on the use of public resources. INTERMEDIATE PURPOSE Intermediate purpose of government accounting is to ensure the plentiful and thorough financial management of public resources through budget p lanning and presenting actual activities. ADVANCE PURPOSE The advance purpose of government accounting is to table service government ensure its accountability to public. To achieve this purpose it is required to have efficiency on three levels accountability of the bureaucracy to the chief executive, of the executive to the legislature, and of the government to the people. Transparency in government accounts serves to ensure efficiency in economy and a weapon against government theft and frauds. Accounting information can be used to monitor and enforce the terms of economic, social and political contracts when government conduct any market transaction its information from financial statements can be used for economic accounting of government. Similarly, when government levies any tax to finance its budgetary needs, details regarding its need and benefit can be assessed for political accounting of government (Chan, 2003).Hence, accounting for government is more for accountability a s it involves public resources. Acknowledgment of the importance of government