Financial Performance - an Approach from the Public Sector Perspective

The accounting standard settings for the public sector entities go through a process of adaptation, on one hand the international accounting standards and, on the other hand, the particularities of this sector. Initiated by the European Commission and professional bodies, this process led to a series of changes in the Romanian specific legislation. Application of accrual accounting increased confidence and transparency of financial reports prepared by governments and their agencies. A special importance in financial reporting of public sector entities is given to financial performance and, more recently, to the performance of services provided by them. Problems encountered in recent years due to the global financial crisis require improving management control in the public institutions to increase performance, efficiency and effectiveness in public spending of funds. In this article we aim to point out some of the concerns of the setters regarding reporting performance information of public sector.