Accounting body calls for transparency in govt finances
   
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Accounting body calls for transparency in govt finances

Last Updated: Tuesday, May 11, 2010, 17:27
 
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Accounting body calls for transparency in govt finances
New Delhi: The international accounting body IFAC Tuesday attributed the escalating sovereign debt crisis in the Eurozone region, particularly in Greece, to 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. 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


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