 Accounting of Expenditure in the National AccountsJoaquim Miranda Sarmento
Chapter Chapter 12 in Public Finance and National Accounts in the European Context, 2018, pp 149-155 from Springer Abstract: Abstract Public expenditure is accounted in accordance with the “accrual” principle. Therefore, transactions are recorded when economic value is created, transformed, or extinguished, or when claims and obligations arise, are transformed, or are cancelled, but not when there is a payment. In the National Accounts, expenditure is classified as follows: expenditure with staff, intermediate consumption, social benefits (in kind or in cash), interest and other current expenditure, or capital expenditure (gross fixed capital formation and other capital expenditure). Expenditure from court decisions with retroactive effects is accounted in the year when the decision is definitive. In the recording of interest from public debt, are accounted the interest that would be paid in the period and not the ones effectively paid. This means that interest are recorded based on the principle of economic specialization (recorded as continuously maturing over time in favour of the creditor based on the amount of the capital in debt). When they are not effectively paid, the increase of capital should be recorded in the financial account as a new acquisition of that type of financial asset. Date: 2018 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-030-05174-7_12 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-05174-7_12 Access Statistics for this chapter More chapters in Financial and Monetary Policy Studies from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.