Govt finalizing draft for new state accounting standard

Govt finalizing draft for new state accounting standard

The Jakarta Post, Jakarta

A new accounting standard in the drawing up of state financial
reports is being drafted and is expected to be finalized in June
next year, before coming into effect in 2005, according to
Minister of Finance Boediono.

"There is still time left, but we need to work hard to prepare
the whole thing," Boediono told a seminar on state accounting on
Thursday.

He added that the drafting of the new bookkeeping standard was
mandated by the Law on State Finance, which was enacted early
this year.

Under the law, executives at all level of government --
including the president, governors, mayors and regents -- are
obliged to draw up an accountability report using a revised
accounting standard, which is a more advanced and transparent
one.

No details of the items to be changed have been made
available, while according to Boediono, the drafting process had
been underway since last year.

As the new accounting standard will also be effective in the
local governments, Boediono expected an active role on the part
of provinces, regencies, and municipalities in their preparations
to comply with the new regulation.

"Because of that, we expect local governments to take the
initiative... and display their achievements in improving the
management of the regions' finances," he said.