1. Accrual accounting practices from a statistical viewpoint
Léonard Haakman
27 February 2012

2. Financial reporting standards in the Netherlands
General standards for private corporations:
Standards financial reporting in Title 9 Book 2 of Civil Code (BW2)
Additional guidelines from Dutch Accounting Standards Board (DASB)
EU-IFRS
Specific standards for government institutions:
cash accounting (State)
accrual accounting: specific regulations
Municipalities, provinces, police districts
accrual accounting according to Civil Code and DASB
Railway infrastructure provider Prorail, schools, universities
Accrual accounting practices from a statistical viewpoint

3. Experience cash accounting
Pros:
Data available shortly after reporting period
“Easy” to interpret
Cons:
Need to correct for accrual recording, only limited insight in corrections (about 20 corrections identified in the NL)
Need to discriminate between financial and non-financial transactions
No recording of non-cash transactions
No concept of economic ownership
No integrated balance sheet
Accrual accounting practices from a statistical viewpoint

4. Experience accrual accounting
Pros:
Time of recording close to ESA95
Clear distinction financial and non-financial transactions
Recording complex transactions similar to ESA95 (not always!)
Concept of economic ownership
Cons:
Sometimes difficult to interpret, large variety of accrual accounting rules
Need to identify and to correct for provisions and reserves booked as revenues/expenses
Need to identify and to correct for (un)realized holding gains/losses
Recognition of revenues/expenses and assets/liabilities sometimes not clear (-> more harmonization!)
Accrual accounting practices from a statistical viewpoint

5. Lessons to be learnt
More harmonization of accrual accounting within countries (and within Europe)
More harmonization of accounting standards between financial reporting and statistics
Statistical adjustments always needed but try to minimize them (IPSAS/GFS convergence project)
Accrual accounting practices from a statistical viewpoint