: The international accounting body IFAC Tuesday attributed the
escalating sovereign debt crisis in the Eurozone region, particularly in Greece
opaque accounting practices of the governments and called for more transparency
in financial management.
"There is an urgent need for an
increased level of transparency in the governments, in respect to how they use
their finances; and what we are advocating is high quality financial reporting
among governments. Greece
is a financial reporting crisis... and that's a serious problem," said
International Federation of Accountants (IFAC) chief financial officer Ian
Ball said no crisis is local anymore and
given the ripple effect it can have worldwide, governments need to be more
responsible and transparent in the way they handle finances.
But the Institute of Chartered Accountants
of India (ICAI) president Amarjit Chopra said the government is moving towards
greater accountability. "Our
government is moving towards more transparency.
They are moving from cash accounting
(single-entry system) to double-entry system. Look at the Railways, look at the
Municipal Corporation of Delhi
they are all adopting the double-entry system. It is a phase the government has
to go through and they are doing it," Chopra said.
The double-entry book-keeping refers to a
set of rules to record financial information wherein every transaction or event
impacts at least two different accounts to avoid error.
The Greek economy is facing an over 12-per
cent deficit, with Athens
struggling to meet its debt obligations.
The European Union and the International
Monetary Fund on Sunday hurriedly unveiled a mammoth USD 1-trillion (750
billion euro) bailout package for the troubled Eurozone countries in their bid
to contain the Greek contagion to Greece
itself and also to rescue
their common currency, the euro, which has been battered since the breakout of
the Greek crisis last month. Greece
is part of the 16-nation Eurozone grouping which use the common euro currency.PTI
First Published: Tuesday, May 11, 2010, 17:27