MoF launches remaining section of accrual accounting programme4 min read
The MoF aims to increase economic planning in the UAE in accordance with the very best worldwide techniques.
In line with its initiatives to enhance fiscal scheduling in the country in accordance with the best global procedures, the Ministry of Finance (MoF) announced on Saturday the prosperous start of the third and closing period of government entities to changeover to accrual accounting.
The venture overcame all the problems it faced in 2020 together with performing remotely owing to the COVID-19 pandemic – which had a direct effects on the transition’s system of action.
Obaid Humaid Al Tayer, Minister of State for Money Affairs highlighted the worth of launching the last phase of the federal government’s changeover to accrual accounting, as it delivers an impressive and superior infrastructure that would enhance the country’s top situation in world wide competitiveness indices. His Excellency Al Tayer praised the ongoing attempts of MoF’s function groups, and lauded the cooperation involving the federal entities and the Ministry of Finance.
Al Tayer said: “Despite the excellent circumstances that the nation and the entire world are witnessing, the Ministry of Finance has demonstrated its overall flexibility and ability to prevail over different issues, by adopting ground breaking and inventive strategies to establish and implement action ideas. The ministry devised realistic solutions in the operate-from-dwelling period, and executed a detailed approach to continue to do the job and cooperate with all parties involved in the venture. To assist comprehensive the job on time, the ministry also allocated a specialised team to provide specialized and accounting assist to federal entity buyers, supply sophisticated technical sorts and answers, and immediate them in making ready opening balances and gathering and exchanging info and knowledge.”
The 3rd stage contains the important entities in the federal authorities, namely: the Ministry of Interior, the Ministry of Education and learning, the Ministry of Overall health and Prevention, the Ministry of International Affairs and Global Cooperation, and other people. These entities commenced implementing accrual accounting from Jan.1, 2021, and ended up equipped to attain sizeable achievements in counting and recording most of the assets and liabilities on the new accounting foundation as on January 1, 2020. This contributed to the transfer of expertise and modify management in these entities to include accrual foundation of accounting in recording their financial operations.
MoF has amended and automated the Federal Financial System and aligned it with the accrual foundation ideas of the third stage-federal entities. Thus, the updated Federal Monetary Procedure on the accrual foundation of accounting was launched to all federal entities – which allows them to file their money transactions dependent on the ideas and standards of Federal Authorities Accrual Accounting Specifications (FGAAS). The new process procedures the functions of tangible and intangible assets – which incorporates processing and automating the asset use, and extracting comprehensive and unified asset reports for the federal govt. That, in addition to automating the federal federal government expenditures and revenues recognition and extracting ultimate experiences dependent on the detailed and cumulative accrual basis at the federal governing administration amount.
The federal government’s transition to accrual accounting has attained many achievements, foremost of which is launching accrual accounting in all federal entities transferring information and building knowledge in the federal governing administration and adopting the alter administration and participatory approach. That, in addition to updating and upgrading accrual accounting software steerage and ensuring the software of the federal authorities accounting specifications.
MoF performs a groundbreaking position in furnishing methods guides and manuals that help employees in the federal entities to apply accrual accounting. The ministry was keen to update the manuals repeatedly – in buy to assure that they comply with the intercontinental specifications for accounting in the general public sector and facilitate their use. It also supplies these guides and scientific materials within MoF’s Digital Library – which can be accessed by all personnel of the economical departments at the federal federal government at any time and in an simple and safe fashion.
Aimed at improving their competencies and self-expertise, the digital library is intended with teaching elevating and transfering knowledge to the human means in federal ministries and entities – in purchase to accomplish a easy and effective transformation course of action at federal entities. Also, MoF is eager to sustain the speed of operate in accordance to the maximum specifications, particularly while mitigating the repercussions of the COVID-19 pandemic. It introduced distant trainings utilizing visual systems and progressive interactive purposes that depend on the lively participation procedure and varied contemporary schooling techniques.
The ministry has supplied 18 interactive schooling programs that have been attended by more than 2,000 federal government workers, and has manufactured offered films of the recorded workshops as a result of the electronic library for reference at any time.
The initially group to changeover to accrual accounting programme was launched on June 1, 2020, while the 2nd group was released on Oct.1, 2020. The third and closing team was launched on Jan.1, 2021.