Kautilya’s Arthashastra discusses accounting, budgeting and general principles of financial management that the State must endeavor to achieve in order to promote good governance. Indian history records the importance given by kingdoms and enlightened rulers towards the better management, custody and control of public finances, and reporting of expenditures and revenues.’ Observed former President of India Shri. Pranab Mukharjee,
Indeed, public financial management is an indispensable key to deliver sustainable and quality public services. Reliability of financial statements impact quality of decisions based thereon. Thus, financial reporting is vital ingredient of public financial management. Dynamic financial reporting caters to needs of the stakeholders that leads to improved governance and measurement of end results. Committee on Public & Government Financial Management (CP&GFM) of the ICAI is making dedicated efforts to prescribe and support in implementing quality Accrual Accounting Framework for Local Bodies. It is at par with the internationally accepted accounting and financial reporting standards in this arena. The CP&GFM functioning unfolds useful role of chartered accountants if this field.
CA. Chandrashekhar Vasant Chitale