Government Accounting System In India, 2

A well designed and well managed accounting system helps ensure proper control over funds.

Self employed examples philippines. It does not help in management of assets and cash. Reserve bank of india as its agent under the provisions of sub section i of section 45 of the reserve bank of india act 1934 2 of 1934. C chief accounting authority means the secretary of a ministry or department of the government of india in which the departmentalised system of accounting has been introduced.

Later with entry of east india company had made a huge impact on trade and commerce of ind. Whilst the government entities have the primary responsibility of fiscal accountability in private sector the main. What is the accounting system followed by the government.

Several shortcomings in the functioning of the accounting system in the indian government are identified. Difference between private sector system of accounting and governmental accounting arises mainly because of the environment of the accounting system. In the government environment public sector entities have differing goals as opposed to the private sector entities one main goal of gaining profit.

Current accounting practice in india. Indian government accounting standards igass formulated by gasab are for cash system of accounting and become mandatory from the effective date after their notification by ministry of finance govt. The constitution of india envisages the accounts of the union and the states to be kept in such a form as the president may prescribe on.

The difference between private and government system of accounting arises mainly because of the environment of accounting system. Government accounts the financial management of any organization must have a prudent financial system backed by sound and effective accounting procedures and internal controls. The roots of accounting system in india had been evolved in early sixteenth century when india had built trade links with europe and central asia.

This chapter looks at the cash accounting system in the indian government to determine how it has worked and in particular how it has responded to the challenge of change in the nature of accountability. Asb is a committee under institute of chartered accountants of india icai which consists of representatives from government department academicians other. Indian accounting standard abbreviated as ind as is the accounting standard adopted by companies in india and issued under the supervision of accounting standards board asb which was constituted as a body in the year 1977.

Such exercise is undertaken by government it known as government accounting.