Advertisement

Comparing Cameral and Accrual Accounting in Local Governments

  • Norvald Monsen
  • Salme Näsi
Chapter

Abstract

Historically the accounting models applied in the governmental and business sectors differ strongly. This difference is due to the fact that there are differences between governmental and business organizations, a point to be discussed further in the next section of the paper. In spite of these differences, however, there seems to be an international trend towards the replacement of traditional governmental accounting (e.g., cameral accounting) with business accounting (i.e., accrual accounting). For example, such a change occurred in the local governmental sector in Sweden in 1986 and a similar change occurred in Finland 10 years later. Currently there are similar changes going on with regard to state accounting in these two countries.

Keywords

Local Government Cash Flow Balance Sheet Income Statement Liquid Asset 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Belkaoui, A. (1993) Accounting Theory, 3 Edition, Academic Press, London.Google Scholar
  2. Brunson, N. (1986) Organizing for Inconsistencies: On Organizational Conflict,Depression and Hypocrisy as Substitutes for Action, Scandinavian Journal of Management Studies, 165–185.Google Scholar
  3. Chan, J.L, Jones, R.H. and Liider, K.G. (1996) Modelling Governmental Accounting Innovations: An Assessment and Future Research Directions, Research in Governmental and Nonprofit Accounting, 1–19.Google Scholar
  4. Estes R. (1996) Tyranny of the Bottom Line, Why Corporations Make Good People Do Bad Things, Berrett-Koehler Publishers, San Francisco.Google Scholar
  5. Filios, V.P. (1983) The Cameralistic Method of Accounting: A Historical Note, Journal of Business Finance & Accounting, 443–450.Google Scholar
  6. Guthrie, J. (1998) Application of Accrual Accounting in the Australian Public Sector-Rhetoric or Reality, Financial Accountability & Management, Volume 14, No1, (February 1998 ), 1–19.Google Scholar
  7. Hay, Leon B. and Mikesell, R.M. (1974) Governmental Accounting, Richard D.Irwin, Inc. Homewood, Fifth Edition, Illinois.Google Scholar
  8. Hendriksen, E.S. (1982) Accounting Theory, International Edition, Fourth Edition, Irwin, Homewood, Illinois.Google Scholar
  9. Hopwood, A.G. (1983) On Trying to Study Accounting in the Context in which It Operates, Accounting, Organizations and Society, 287–305.Google Scholar
  10. Hogheim, S., Monsen, N., Olsen, R. and Olson, O. (1989) The Two Worlds of Management Control, Financial Accountability and Management, 163–178.Google Scholar
  11. Jones, R. and Pendlebury, M. (1996) Public Sector Accounting,Pitman Publishing, 4th Edition, London.Google Scholar
  12. Jönsson, S. (1982) Budgetary Behaviour in Local Government - A Case Study over 3 Years, Accounting, Orgnaizations and Society, 287–304.Google Scholar
  13. Lee, T.A. (1972) A Case for Cash Flow Reporting, Journal of Business and Finance, 27–50.Google Scholar
  14. Lee, T.A. (1986) Towards a Theory and Practice of Cash Flow Accounting, Garland Publishing, Inc., New York.Google Scholar
  15. Littleton, A.C. (1985) Structure of Accounting Theory, American Accounting Association, Monograph No. 5, Sarasota 1953 (13th printing 1985 ).Google Scholar
  16. Meklin, P. (1998) Tuliko kunnista yrityksiä? Polemiikki, Uuden kuntatiedon erikoislehti, 2 /98, 10–11.Google Scholar
  17. Mellemvik, F., Monsen, N. and Olson, O. (1988) Functions of Accounting; A Discussion, Scandinavian Journal of Management, 101–119.Google Scholar
  18. Monsen, N. (1983) Regnskap i politikken? Om ârsrapportens funksjoner foe en kommune og dens toppledelse, Fagbokforlaget, Bergen.Google Scholar
  19. Monsen, N. and Näsi, S. (1986) Local Governmental Accounting in Finland and Norway: A Historical Note on Cameralism, Research in Governmental and Nonprofit Accounting, 259–274.Google Scholar
  20. Monsen, N. and Näsi, S. (1998) The Contingency Model of Governmental Accounting Innovations: a discussion, The European Accounting Review, 7: 2, 275–288.CrossRefGoogle Scholar
  21. Monsen, N. and Olson, O. (1986) Silent Accounting Harmonisation: Towards the Presentation of Cash Flow Models in the Local Governmental and Business Fields in Norway, Scandinavian Journal of Management, 411–423.Google Scholar
  22. Morgan, G. (1986) Images of Organization, Sage Publications, Beverly Hills.Google Scholar
  23. Musgrave, R. and Musgrave, P. (1973) Public Finance in Theory and Practice, McGraw-Hill, New York.Google Scholar
  24. Näsi, S. (1995) Financial Reporting in the Public Sector, The development of local authority accounting and accountability in Finland from the 1920s to the present, Paper presented at the 18th Annual Congress of the European Accounting Association, 10–12 May 1995, Birmingham, United Kingdom.Google Scholar
  25. Näsi, S. (1996) Criteria for Choosing a Business Accounting Model in the Finnish Public Sector, Paper presented at the 19th Annual Congress of the European Accounting Association, NHH, Bergen, Norway, 2–4 May 1996.Google Scholar
  26. Olson, O. (1983) Ansvar och ändamâl - om utveckling och användning av ett konmmunalt ekonomsisystem, Doxa, Karlshamn.Google Scholar
  27. Potthoff, E. and Sieben, G. (1994) Eugen Schmalenbach (1873–1955), in Twentieth-Century Accounting Thinkers, Edited by John Richard Edwards, Routledge, London.Google Scholar
  28. Robinson, M. (1998) Accrual Accounting and the Efficiency of the Core Public Sector, Financial Accountability and Management in Government, Public Services and Charities, Volume 14, No 1, February 1998.Google Scholar
  29. Rombach, B. (1986) Rationalisering eller prat. Kommuners anpassning till en stagnerande ekonomi, Doxa, Lind.Google Scholar
  30. Saario, M. (1945) Realisointiperiaate ja käyttöomaisuuden poistot tuloslaskennassa, Liiketaloudellisen tutkimuslaitoksen julkaisuja 6, Helsinki.Google Scholar
  31. Saario, M. (1968) Kirjanpidon meno-tulo teoria, Keuruu.Google Scholar
  32. Schmalenbach, E. (1933) Dynamische Bilanz, 6. Auflage, Leipzig.Google Scholar
  33. Sterling, R.R. (1979) Toward a Science of Accounting, Scholars Book Co. Houston, Texas.Google Scholar
  34. Walb, E. (1926) Die Erfolgsrechnung privater und öffentlicher Betriebe. Eine Grundlegung, Industrieverlag Spaeth & Linde, Berlin.Google Scholar
  35. Wysocki, K.V. (1965) Kameralistisches Rechnungswesen, C.E. Poecschel Verlag: Stuttgart.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2001

Authors and Affiliations

  • Norvald Monsen
  • Salme Näsi

There are no affiliations available

Personalised recommendations