Adapting the Balance Sheet for the Local Self-government Accounting

バランスシート

財政危機

企業会計

アカウンタビリティ

local self-government accounting systems

balance sheet

financial crisis

business accounting system

accountability

In the financial crisis of local self-governments after the 'bubble' economy collapses, there are many arguments over the reforming their accounting systems. The conventional accounting system of local self-governments is the cause of the financial crisis. The reformation consists in adapting the business accounting system, which contains double-entry bookkeeping, accrual accounting, and balance sheet, for the local self-government accounting. Balance sheet has been already made of conventional account data in a lot of local self-governments (e.g. Kumamoto and Miyagi prefecture, Tokyo metropolis, and Fujisawa and Usuki city). But there are some problems in the disclosure, which are (1) introducing consolidated statement, (2) liability out of book, (3) valuation of assets, and (4) meaning of the balance between assets and liability. JICPA proposed accounting standards and external auditing system for local self-governments. The argument of the reform hereafter will be more developed.