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| Article Name : | | | FINANCIAL ACCOUNTING AND REPORTING PRACTICES OF MUNICIPALITIES IN WEST BENGAL: A STUDY OF THE LEVEL OF COMPLIANCE WITH NEW REGULATORY REQUIREMENTS | | Author Name : | | | KRISHNAPADA DASH | | Publisher : | | | Ashok Yakkaldevi | | Article Series No. : | | | ISRJ-91 | | Article URL : | |  | Author Profile | | Abstract : | | | The regulatory system governing the preparation and presentation of financial accounting reports by municipal organizations in West Bengal has undergone massive changes in the recent years. These changes have been underpinned by the need for appropriate planning, quality budgeting, the execution and monitoring of plans and budgets, transparent and user-friendly financial reporting that will assist decision makers and the public to measure performance and service quality. One of the major changes made in the regulatory requirements relating to municipal accounts relates to the replacement of the old cash-basis single entry system of accounting by the accrual-basis double entry system. The West Bengal Municipal (Financial and Accounting) Rules, 1999 has been amended suitably in order to bring about the matching changes in the layout and presentation of the financial statements. The implementation of the new system requires the preparation of an opening balance sheet, which is a complex and challenging job. The preparation of opening balance sheet requires the collection of information on fixed assets, including their location, service levels and value, and determination of liabilities as of the date the fiscal year begins. Guidelines have been formulated as to how the various issues involved in the preparation of the opening balance sheet should be addressed. The reformed municipal accounting system has been brought into force for the municipalities in Kolkata Metropolitan Area (KMA) from the financial year 2006-2007. Other municipalities have been given one year's extra time for the transition. Under the new regime, municipal organizations are required to generate the following financial statements: Trial Balance; Income Expenditure Statement; Receipts and Payments Account; Cash Flow Statement; and Balance sheet. | | Keywords : | | - municipalities
- organizations
- kolkata metropolitan area
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