Comparison of Accrual and Cash Accounting Principles in Slovakia

Abstract

Quality financial information is necessary for effective management in the public sector sphere. A role of accounting in the public sector is to ensure a database of relevant information necessary for public finance management and for the needs of the presentation of results of our country´s economy within the European Union. This information can currently be divided into two basic groups: State budget (central government), which comprises all budget chapters and their subordinate organisations. Public administration budget (public sector), which comprises state budget and other components of public administration budget, e.g. public universities, Social Insurance Company, health insurance companies, state funds, etc. Our article will deal with public administration and the process of international harmonisation and accounting regulation within the European Union as well as accrual accounting, thus contributing to the equivalence and comparableness of financial information in time and space.

Keywords: Information, Accounting, Accrual principle, International Accounting Standards.