engleski

Public Sector Accrual Accounting application: Can Croatia learn from New Zealand experience?

This paper analyses public sector accounting development in two countries: New Zealand and Croatia over a 25-year period (1990-2015). The goal is to compare the path of development and identify key influences on solutions in a particular period of time (several phases of accounting system development) in that period. Public sector (governmental) accounting system in Croatia has been based on a modified accrual model, where the application of modified accrual accounting has been regulated as obligatory by extensive set of laws, decrees and rules. In addition, being a member of the EU Croatia is obliged to harmonize its national accounting framework with the EU directives and regulatory framework, which assumes the implementation of full accrual accounting. Starting from the fact that the accrual accounting, as the model that is inaugurated at the international level, was adopted by the New Zealand Government over 25 years ago, the authors set the research question of whether it is possible to apply any of the NZ experiences as an example of good practice, in Croatia. Therefore, in this paper we analyse the characteristics of public finances and national governmental accounting system in these two countries. Authors identify factors that have influenced the developments. In addition, this paper explores the similarities and differences between the current characteristics of governmental accounting and financial reporting in NZ and Croatia. Authors also explore the assumptions that must be met for accrual accounting implementation in Croatia and discuss possible implementation obstacles. The results of this paper might be helpful to national authorities in continuing the improvements of national governmental accounting legislation. They also might be useful to other countries that are in comparable situations.

Public sector accounting; accruals; Croatia; New Zealand

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