International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

ACCOUNTING RECORDING SYSTEM ON ACCRUAL BASIS AT LOCAL AUTHORITIES IN TURKEY: AN APPLICATION IN GAZIANTEP LOCAL MUNICIPALITY
Dr. Ekrem KARA, Yunus KILIÇ

ABSTRACT
Saving and storing all the financial data needed by the public sector on a daily basis, accurately, and reliably; processing and analyzing these data, thereby presenting the management information and financial information to administrators in decision-making status is vital. In a decision-making process, a well-designed management information system provides timely and adequate information and generates related reports for the managers. Therefore, as it helps managers make effective, timely and accurate decisions, it has a critical role in fulfilling managers’ obligations of accountability. Local government accounting practices have been performed according to 5018 Public Administration and Control Act 5018 since 2004 in Turkey. With this law, cash basis accounting which causes most of the information loss and unrecorded entries important for reporting, is replaced by a local government accounting system on accrual basis. In this system, as mentioned before, an expense is recorded when the purchased good or provided service causes a local government debt, whereas an income is recorded when it accrues. With the help of this system, the information about assets and liabilities of local municipalities are completely recorded on time. In this study, the primary aim is to identify problematic entries in terms of accounting records which local governments face and determine crucial points in accounting reports in Turkey. Also the accrual basis accounting systems at local municipalities in Turkey and their practices have been analyzed and an application has been done at Gaziantep Municipality.

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