The Anachronism of the Local Public Accountancy Determinate by the Accrual European Model

Abstract

Placing the European accrual model upon cash accountancy model, presently used in Romania, at the level of the local communities, makes possible that the anachronism of the model to manifest itself on the discussion’s concentration at the nominalization about the model’s inclusion in everyday public practice. The basis of the accrual model were first defined in the law regarding the commercial societies adopted in Great Britain in 1985, when they determined that all income and taxes referring to the financial year “will be taken into consideration without any boundary to the reception or payment date.”1 The accrual model in accountancy needs the recording of the non-cash effects in transactions or financial events for their appearance periods and not in any generated cash, received or paid. The business development was the basis for “sophistication” of the recordings of the transactions and financial events, being prerequisite for recording the debtors’ or creditors’ sums.