논문

Local governments in Korea have been preparing the transition to accrual from cash accounting at the trial level beginning with two of 248 local governments, since the late 1990s. Its aim is to encourage the efficiency, effectiveness and transparency of the public service and also to provide better management information on the fiscal operation in the government sector. With regards to this in particular, financial information need to be integrated to understand the comprehensive financial conditions of reporting entity such as assets, liabilities, net assets, revenues and expenses. Considering these aspects, this paper covers general perspectives of the accounting and financial reporting system, mainly focusing on the subjects concerning the consolidated financial statements of the individual reporting unit. The study suggests the short-term and long-term perspectives based on the scope and method of consolidation, the type of financial statement, and the nature of internal transactions.