Accounting and Fiscal Reporting in EU Countries

This Working Paper explores the relationship between the uptake of accrual basis of accounting in government and the use of the resultant accrual information in fiscal statistics, using the European Union (EU) as a case study. The Paper looks at the current state of accounting practices in the general government sector (GGS) of the 27 EU member states. The study of accounting practice is based primarily on two sources that provided a comprehensive picture of government accounting in all the 27 member states, namely the PwC/Eurostat survey of Accounting Maturities of EU Governments and the International Federation of Accountants and the Chartered Institute of Public Finance and Accountancy (IFAC/CIPFA) International Public Sector Financial Accountability Index. The analysis then uses data compiled by Eurostat, the EU statistical office, to explore the extent to which the accrual information is being used in the separate statistical reporting of EU member state public finances. The study draws out some general observations which may be of relevance to all countries during accounting and fiscal reporting reforms.