Actual Problems of Public Sector Accounting and Reporting Reforms

Аннотация

At the end of the last century, after changing the political and economic formation in Georgia, carrying out reforms in every field of social life became an important task. The constant growth of state costs increased the interest in utilizing these costs more efficiently. The economic reform was partly directed to the commercialization of the state sector, which later developed accounting. Accounting became close to the public sector as it adopted its methodology and standards of accounting. In modern conditions, this created specific challenges and required the reformation of the accounting system. 

The paper includes a retrospective review of the reformation of accounting and financial reporting of the public sector of Georgia. The modern state of regulation of this particular field is analyzed and existing disadvantages are emphasized. Also, based on the analysis, proposals in regards to perfecting the accounting and the financial reporting in the public sector are developed.