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THE EVOLUTION OF ACCOUNTING AND PUBLIC CONTROL
National Public Accounting System-SNCP
The General Public Accounting System is a set of policies, principles and technical accounting procedures structured logically, when interacting with operations, resources and activities developed by the operators information required for public entities to generate decisions in the public administration in the public administration. The National Book is composed of branches, entities or institutions of public power at the national level as autonomous and independent national institutions, institutions established by the Constitution and national laws. Or any branch with a special law system. Public power, natural or legal person and any other type of organization or society that manages or manages national resources. About these.
The public accounting system includes the formulation of standards, must be applied by public accounting entities, and includes public accounting (PGCP), procedure manuals and public accounting theory. The actions generated by the budget execution must the objects of each registry, are the source of the organization. Financial information on which the results of national accounting or the national public accounting system are based.
In the legal aspect, the accounting, entity and procedural standards that must be governed in the Colombian public sector. Thus, orderly evidence of the economic facts and documentary evidence of the decisions taken, at different times, by the public administration.
Scope of the accounting dimension
They are the operational phase of the accounting process from the data acquisition of the base to generate financial statements and complementary reports. Financial, economic and social activities, highlighting 145 Article 70 of Law No. 298 of 1996 146 General Accounting of the Nation. Bogotá Public Accounting System, 2007 370 The Tenth Unit. Public Accounting and Control Recognition of its effectiveness, registration, valuation, dissemination and interpretation, at the micro and macroeconomic level. SGCP applies to all public entities in the following countries and regions: central and decentralized orders, except for express stipulation the current legal system is subject to a special accounting system.
The conceptual framework of public accounting in its foundation establishes a method of logical reasoning from a logical process, recognizes the legal, economic and social environment of the public sector, determines needs and goals, through induction to identify the needs and needs andobjectives. The established procedures are constituted in doctrines and are mandatory, the conceptual framework of public accounting includes: assumptions, purpose, users, accounting characteristics, general rules and technology. The postulates between those that are counted and the purpose of accounting, are the following:
Given its characteristics, public accounting information reflects the financial, economic and social facts of a public entity, ensures sufficient reliability and constitutes an indispensable tool in decision making.
- Of Citizen Culture: This helps to understand the activity. Public entities to enhance legality and commercial recognition Public Accounting.
- Management: so that financial decisions, administration, planning and budgeting can be made.
- Of analysis and dissemination: so that you can develop the purpose, research and recommendations, according to user public accounting information.
Public Accounting Principles
They are essentially basic concepts and general guidelines that guide and explain the analysis and interpretation of the accounting process. Information related to the issues and activities of public entities, specify and define accounting processes of common parameters and standards for the quantification of financial, economic and social facts, and financial statements and complementary reports of public administrations, within the principles of accountingpublishes are considered the following:
- Control: the company and administrations can control it in different ways since the public accounting process allows the efficient proportion of the evidence of the company’s economic and financial facts.
- Equity: pay attention to the rights and obligations of the country, the company and individuals, the information contained in reports and financial statements and complementary reports -absolute justice. The accounting process is an equanimous model of balance, certainty and credibility.
- Compliance with legal norms: financial, economic and social facts, of administrations or public entities must be registered in advance in the accounting process to comply with current and relevant regulations.
GENERAL RULES OF PUBLIC ACCOUNTING
In public accounting the following general rules have been established:
- Unit of measure: A legal tender for mandatory tender is the monetary unit used to evaluate the economy and budgetary operations, the financial and hereditary properties of public entities.
- Public entity: It is formed by entities, agents, institutions, company, company, company, unit or other institution belonging to the public sector, central or decentralized level must comply with the national and regional orders of PGCP within the scope of application.
- The real involvement: means that the operation has the following characteristics: they are past facts that represent results, surplus or deficit, changes in available or required activities or resources.
The following are considered valuation bases:
- Historical cost: It constitutes the cost of acquisition, production or consumption, and is the recognition of financial, economic and social facts. Unless otherwise indicated, this basic principle must be maintained, in which case special legal exceptions should be used as footnote notes of the financial statements.
- Re-expressed cost: It is due to present value because it is exposed to exogenous variables, such as inflation or devaluation specific general characteristics.
- Current replacement cost or value: Represents the amount of cash or equivalent, it can be paid by buying similar assets or equivalent value, or cancellation obligations may be required currently has similar or identical characteristics.
- Present value: It is up to subtract ‘total assets or liabilities‘ used in generating discount rate
Internal control in public finance management
The execution method combined with budgetary and public investigations, control of effective and preventive management can constitute an indispensable element when the financial situation is good, so that the culture of corruption does not continue to produce disastrous consequences. Of course, in a country that suffers the same scourge, if the appropriate internal controls do not apply in financial management, the risk of a deviation in operations can be run, considering that internal control will be used as the basis or means of administrative control, which includes organizational planning and procedures with the sole purpose of protecting assets and FCCPV accounting reliability, all the methods and coordination measures used to protect and protect the company, examine the precision and reliability of accounting data and their operations to improveOperational efficiency and productivity with promoting compliance with the practices of each company’s practices.
Financial control: establishes internal control from a financial point of view, is the management and sustain of the assets of companies and administrations, in order to avoid undue disbursements of funds and offer the security that obligations will not be contracted withoutAuthorization, also, the concept of internal control is a completely study and evaluation of the existing internal control as a basis for determining the tests to which audits procedures will be limited. The objective of internal control is to improve the effectiveness and efficiency of the organization, through the use of this control, thus promoting operations.
The objective of this concept is to protect the assets of the circumstances, it is considered that it is in danger of loss, that is, if this happens frequently, try to eliminate or reduce the loss as much as possible. His idea is to encourage the efficiency of operations management is greater than that of operations management. Establish organizational policies and, ultimately, guarantee internal control. Therefore, the address must be informed at any time. Operational and financial management, and the information is reliable and accessible at the most appropriate time, so that the address can make a decision. Suitable for the real situation of the company.
Possible applications to the economy
Accounting allows a country to understand the economic and social conditions of the organization because it helps to measure the capital generated and redistribute capital in the economic process of investors. Public accounting implies not only registering figures, but also solutions must be provided when an economic crisis occurs in a country, so we say that the economy is the method of production and distribution of wealth, while public accounting is responsible for registeringand analyze (the production and time method) and its quantity. Public Accounting as a tool to solve economic problems.
Public finances play an important role in the decision making of the Government because they study the way in which the country itself finances and invests in resources that are considered income. Finally, public finances are decisions on income and expenses (liquidity) in the public sector.
Public accounting is a specialized branch of accounting that, through various processes, allows to take into account the economic, social and environmental realities of public institutions and enable adequate management, custody and distribution of public resources. The organizations that are part of the public sector differ from those of the private sector in which the first operate disinterestedly, offering goods and services to meet the needs of the community. Your income also comes from a source that is not private. The international public accounting model is concerned with capturing the reality of this sector analyzing all the aspects involved in it, always establishing a chronological order, which goes from the most general in this case to the gnoseological aspect of accounting. More specific aspects of the subject of the sector -ranking in this case the accounting of the public sector.
With the passage of time, accounting has been developed in response to the demand for environmental information, that is, it is an answer to this demand, so its development depends on the economic development of each country, which means that they existmultiple impacts. The factor of this evolution is that the property of a company determines the type of accounting system, because the higher the number of companies that distribute capital among many owners, the greater the demand for companies in relation to the number of family businesses. If accounting figures are published, if the property belongs to the State, the demand will decrease, because in this case, the impact of centralized control will require an accounting system that serves macroeconomic goals.