The Recent Reform of Spanish Local Governmental Accounting: A Critical Perspective from Local Governmental Accountants As Internal Users Of Budgeting And Financial Accounting Information.

  • Jose Manuel Vela-Bargues Polytechnic University of Valencia
  • Rosa María Dasí-González Universitat de València, Facultat d’Econmia
  • Amparo Gimeno-Ruíz Universitat de València, Facultat d’Econmia
Keywords: usefulness of accounting information, budgetary accounting, accrual accounting, local government accountants, local government, Spain

Abstract

Local Government Accounting and Financial Reporting in Spain has been recently reformed by the new Accounting Instructions published in 2103 and in force since the 1st of January 2015. Once the financial reports corresponding to 2016 fiscal year have been published, the main purpose of this paper is to empirically evaluate, the perceptions and opinions that local governmental accountants have about the recent reform. Our analysis has found a clear gap between the aims of the reform and the opinion of local governmental accountants, who consider the system too complex and clearly biased towards financial accounting information.

Author Biography

Jose Manuel Vela-Bargues, Polytechnic University of Valencia

Ph. D, Professor, Universitat Politèncica de València. Camino de Vera s/n, 46022 Valencia, Spain, email: jovebar@upv.es

References

Anessi-Pessina, E., Nasi, G. & Steccolini, I. (2010) Accounting innovations: a contingent view on Italian local governments, Journal of Public Budgeting, Accounting & Financial Management, 22(2), pp. 250-271, https://doi.org/10.1108/JPBAFM-22-02-2010-B005.

Arnaboldi, M. & Lapsley, I. (2009) On the implementation of accrual accounting: a study of conflict and ambiguity. European Accounting Review, 18(4), pp. 809-836, https://doi.org/10.1080/09638180903136225.

Arnaboldi, M., Lapsley, I. & Steccolini, I. (2015) Performance management in the public sector: The ultimate challenge. Financial Accountability & Management, 31(1), pp. 1-22, https://doi.org/10.1111/faam.12049.

Brusca, I. & Montesinos, V. (2013) From Rhetoric to Practice: the case of Spanish local government reforms. Financial Accountability and Management, 29(4), pp. 354-377, https://di.org/10.1111/faam.12019.

Brusca, I., Montesinos, V. & Vela, J. M. (2015) Public Sector Accounting and Auditing in Spain, In: Brusca, I., Caperchione, E., Cohen, S. & Manes Rossi, F. (eds) Public Sector Accounting and Auditing in Europe. The Challenge of Harmonization (London: Palgrave Macmillan), pp.173-188.

Dasí, R. & Gimeno, A. (2014) Financiación Básica. Especial referencia a las subvenciones y Patrimonio Neto, In: Bargues, V. (ed) La nueva contabilidad de la Administración Local: una aproximación normativa, práctica y conceptual (Valencia, Spain: Universidad Politècnica de València. Diputación Provincial de Valencia), , pp.189-211.

Ellwood, S. (2001) Accruals accounting approaches in the UK public sector: diversity and convergence, In: Bac, A. D. (ed) International comparative issues in government accounting (US: Springer) , pp. 213-232.

Fuertes, I. & Vela, J. M. (2000) La contabilidad de la Administración Local en Europa. Revista Española de Financiación y Contabilidad, 29(105), pp.657-686.

Grossi, G. & Tagesson, T. (2008) Consolidated financial reports in local governments- a comparative analysis of IPSAS and SCMA, In: Jorge, S. (ed) Implementing reforms in public sector accounting (Coimbra: Universidade de Coimbra/Coimbra University Press) , pp. 337-349.

Grossi, G., Mori, E. & Bardelli, F. (2014) From Consolidation to Segment Reporting in Local Government: Accountability Needs, Accounting Standards, and the Effect on Decision-Makers, Journal of Modern Accounting and Auditing, 10(1), pp. 32-46.

IFAC (International Federation of Accountants) (2012) Reporting on the Long-Term Sustainability of a Public Sector Entity's Finances (New York: IFAC).

IFAC (International Federation of Accountants) (2014) Handbook of International Public Sector Accounting Pronouncements (New York: IFAC).

Montesinos, V. & Brusca, I. (2008) Whole of government financial reporting: Fashion or necessity, Workshop on whole of government financial reporting: International trends, Siena, Italy.

Montesinos, V. & Vela, J.M. (2003) Spain, In: Lüder K. & Jones, R. (eds) Reforming governmental accounting and budgeting in Europe (Frankfurt, Germany: Price Waterhouse Coopers), pp. 671-753.

Montesinos, V., Vela, J. M. & Benito, B. (2001) Accounting and Financial Reporting in Spanish Regional Governments: Exploring Similarities and Differences, In: Bac, A. (ed) International Comparative Issues in Government Accounting (Springer: US), pp. 195-212.

Navarro-Galera, A., Rodríguez-Bolívar, M. P., Alcaide-Muñoz, L. & López-Subires, M. D. (2016) Measuring the financial sustainability and its influential factors in local governments, Applied Economics, 48(41), pp. 3961-3975, https://doi.org/10.1080/00036846.2016.1148260.

OECD/IFAC (2017) Accrual Practices and Reform Experiences in OECD Countries (Paris: OECD publishing), https://doi.org/10.1787/97892642270572-en.

Pina, V., Torres, L. & Yetano, A. (2009) Accrual Accounting in EU Local Governments: One Method, Several Approaches, European Accounting Review, 18(4), pp. 765-807, https://doi.org/10.1080/09638180903118694.

Tagesson, T. (2009) Arguments for proportional consolidation: The case of the Swedish local government, Public Money and Management, 29(4), pp. 215-216.

Van Helden, J. (2016) Literature review and challenging research agenda on politicians' use of accounting information, Public Money and Management, 36(7), pp. 531-538, https://doi.org/10.1080/09540962.2016.1237162.

Vela, J. M. (1996) Latest Developments on Local Government Accounting in Spain, Financial Accountability and Management, 12(3), pp.205-224, https://doi.org/10.1111/j.1468-0408.1996.tb00423.x

Vela, J. M. (2014) La normalización de la Contabilidad de la Administración Local, In: Vela Bargues, J. M. (ed) La nueva contabilidad de la Administración Local: una aproximación normativa, práctica y conceptual (Valencia: Universitat Politècnica de València. Diputación Provincial de Valencia).

Vela, J. M. (2015) La normalización de la Contabilidad Pública española: una visión crítica tras cuatro décadas de reformas (Valencia: Real Academia de Cultura Valenciana).

Published
2018-07-30
Section
Articles