Public sector entities’ aim is to provide services to their citizens. They operate in a specific environment and thus, their accounting system differs from the one used by business enterprises, and its development moves towards greater achievement of the international financial communication,...

This technical note and manual (TNM) explains what accrual accounting means for the public sector and discusses current trends in moving from cash to accrual accounting. It outlines factors governments should consider in preparing for the move and sequencing of the transition. The note...