Accrual accounting and financial management in the public sector in developing countries

The objective of this paper is to show that a successful implementation of accounting represents infrastructural support for successful management therefore its content and structure should be more closely monitored in the function of increasing the effectiveness of the financial management, and not just in the function of execution of the objectives in the budget. The paper indicates that the essence of the reform of the accounting system and financial reporting by public sector entities is the use of the concepts and principles on which the financial reporting by private sector entities is based, or the transition to the financial reporting based on accrual accounting. Public sector managers who often do not see themselves as managers who manage available resources, but rather as managers who pursue a policy of some of the specialized public sector functions, need instead to be fully engaged in the financial management and control.