The Accounting

Framework
Governmental Accounting
Accounting Framework

 Accounting
principles
 Accounting
Policies
 Procedures
 Where need
also adopts
GAAP
Accounting Framework
 Basis of Accounting
 Methods of accounting
 Cash accounting

 Modified Cash Accounting

 Accrual Accounting
Accounting Framework
 Cash accounting
 Record only increase and decrease of Cash
Balances
 No relationship with relevant reporting period
 Little or no indication of entity's financial
position
 Obligation for future payments are not
identified properly
Accounting Framework
 Modified Cash Accounting
 Receipts and payments are made as usual
 Provides recording of
 Commitments
 Fixed assets

 Financial assets and liabilities

 Logical progression from cash to more advance

model i.e. accrual
Accounting Framework
 Accrual Accounting
 Used to measure actual financial performance
 Expenses are recording to the period getting
its benefit
 Revenues are recognized to the period to
which they relates
 Adopted in IAS and GAAP
 Use in government sectors is increasing
Summary of Accounting
Models
Financial Reporting
Requirements
Annual Requirements
 Each AG (for provinces) and AGPR (for federal
govt.) shall produce separate financial
Statements.
 Reports shall be submitted to followings through
AGP
 President/Governors
 Finance Division (MoF)/ Finance Deptt
 National /Provincial Assemblies
 Public Account Committee
 Reports must be in accordance with Constitution
and PAAO 1973
 AGP is responsible for such compliance
 The AGP’s observations are presented separately
from following reports
Annual Requirements
 Reports to be Submitted
 Statement of Assents and Liabilities
 Statement of Revenues and Expenditures
 Statement of Cash Flows
 Notes to Financial Statements
 Analysis of Surplus/Deficit
 Analysis of Revenues etc.
 Consolidated Financial Statements
 By Comptroller General (CG)
 These statements are for whole of the Republic
 Each consolidated statement for all above
Half Yearly and Quarterly
Reports
 Produced by AG/AGPR offices
 Short Version of Annual Financial
Statements
 Intended to Provide to PAD and Finance
Division/Deptt.
 The reports assist in preparing annual
reports
 Exceptions can be identified earlier
Monthly Reports
 All subsidiary offices to AG/AGPR offices prepare
monthly accounts
 To be consolidated by AG/AGPR officers
 Subsidiary officers are
 DAO’s and their Subordinate offices Sub-Treasury
Offices
 In addictions to this accounts of self accounting
offices are also submitted to AG/AGPRs
 The focus is to report receipts and payments
 Provide monthly and progressive totals of
expenditures against budget for each division and
deptt.
Monthly Reports
 Before reporting the accounts must be matched
with DDO records and bank statements
 At AG/AGPR these shall be consolidated
 And referred as Consolidated monthly Accounts
 Consolidated monthly account are submitted to:
 AG
 Finance Division/Deptt.
 Other Divisions and Deptts
Self Accounting Entities
 National Savings organizations
 Pakistan railways
 Forest Deptt.
 Pakistan Public Works Deptt
 Pakistan Mint
 Food Wing for Food and agriculture Deptt
 Geological Survey of Pakistan