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NRB Account 2081 Government Accounting System 1
NRB Account 2081 Government Accounting System 1
Introducing
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the government accounting system. Explain the principles, basis and accounting framework of government
accounting in Nepal. 3+7
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, ! Introducing
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the government accounting system. Explain the principles, basis and accounting framework of government
accounting in Nepal. 3+7
Government accounting means keeping accounts of public financial transactions in accordance with
prevailing laws. In this, financial transactions are organized, regularly, and scientifically recorded and
the prescribed reports are prepared.
According to the Fiscal Procedures and Financial Responsibility Act, 2076, 'accounts' means the initial
entry vouchers and records, accounts, books, etc. prepared on the basis of the prevailing law in order to
show the transaction, and the proof documents to verify or confirm the transaction and prepared on the
basis thereof. Financial statements and reports should be remembered and the term also refers to records
kept electronically or electronic records that prove transactions.
Government accounting informs the stakeholders about the budget allocated for various government
agencies, its use, the returns received from it, government revenue, foreign aid, internal and external
debt, etc.
Principles, Basis and Accounting Framework of Government Accounting of Nepal
The constitution and laws of Nepal have made the following provisions regarding the principles, basis
and framework of government accounting.
(a) Constitutional provisions: According to Article 241(4) of the Constitution of Nepal, the accounts
to be audited by the Auditor General shall be kept in the format prescribed by the Auditor General in
accordance with the federal law.
(b) Legal system: Section 25 of the Fiscal Procedures and Financial Responsibility Act, 2076 states
that the principles, basis and structure of public accounting in Nepal shall be as follows:
o Accounts of allocation, revenue, bonds and other government transactions should be kept in the
prescribed format according to the principle of double accounting system.
o Other bases of accounting of transactions shall be as prescribed.
o The process of accounting and reporting shall be as determined by the Comptroller General's
Office in accordance with the valid principles of accounting, the latest concepts developed in
this field and the guidance of the prescribed public sector accounting standards.
o For the purpose of keeping accounts, the Comptroller General's Office shall formulate and
implement the format of accounts and financial indicators and classifications approved by the
Auditor General.
o To publish the format of accounts and financial indicators and classification approved by the
Auditor General in the Nepal Gazette.
o Provincial and local levels can keep accounts on a prescribed basis with the approval of the
Comptroller General's Office.
Conclusion
In the context of Nepal, the accounts maintained by the federal government, state government, local
level and other designated bodies in a format approved by the Auditor General are called government
accounts.
? & _ OU & ) 3 ! What is the
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government accounting system of Nepal? Briefly describe the general principles of government accounting systems.
2+8
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? & _ OU & ) 3 ! What is the
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government accounting system of Nepal? Briefly describe the general principles of government accounting systems.
2+8
In the context of Nepal, government accounting is the overall process adopted to systematically account, record,
prepare details, prepare reports, analyze and conduct audits of all types of income and expenses received in
accordance with the prevailing laws in all 3 governments of the federal, province and local levels and the agencies
under them. It includes allocation accounting, revenue accounting, debt accounting, project accounting, financial
accounting, etc. Government accounting system is considered as an important administrative tool of federal
government, state government and local level.
Principles of Government Accounting System
To make accounting management based on standards, to make uniformity, continuity, and universality, various
recognitions and principles are being developed in this field. Such beliefs and principles are called (General
Accepted Accounting Principles -GAAP). Some of the major principles that have been proposed and used so far
are as follows:
o Principle of Law: The prevailing legal system existing in the country should be followed.
o Cash-based theory: Government financial transactions are based on cash.
o Principle of stability: Maintaining stability in accounting policies and systems, i.e. the condition of not
changing in a short period of time.
o Principle of uniformity: Uniformity should be maintained in the accounting and reporting system
prepared by all agencies.
o Principle of Cost Price: Accounts should be kept based on the cost price of the transaction of goods or
services.
o Principle of economic unit: Each economic unit shall have separate accounts.
o Principle of full disclosure: Full and true disclosure of financial transactions.
o Principle of Continuity: Any transaction or matter should be considered as a continuous process rather
than a random event.
o Principle of matching: Transactions of one financial year should be matched in the same financial year.
o Principle of reliability: Accounts of business should be reliable.
o Recognition Principle: Recognition and accounting of income and expenses.
o Principle of time period: Preparing accounting statements and reports based on a certain period of time.
o Principle of Objective Basis: Accounting should be factually based on the nature and importance of
goods or services.
o Publication principle: Financial statements should be prepared and published in a manner that provides
accurate information to the stakeholders of the agency.
o Principle of comparison: Obtaining comparable details and data between one financial year and another
financial year and one agency and another agency.
Conclusion
The government accounting system of Nepal plays a positive role in providing the necessary data to the
government as well as in establishing budget control and financial responsibility.
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What is the government accounting system of Nepal? Write down the problems and solutions of
government accounting system of Nepal. 2+4+4
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