Report on accrual and deferral entries in government accounts


Report no. 27/2013

The report concerns how a number of government bodies make accrual and deferral entries in the accounts at year-end to address timing differences.

The report focuses on entries that are based on an assessment of whether they should be deferred to the following accounting year or be reported in the current period. In some instances, the government bodies will also be required to estimate the size of the amounts involved.

In 2012, the Danish government introduced a budget ceiling, which – among other things – means that government bodies are not allowed to transfer and use surpluses accumulated in previous accounting years. There is therefore a risk that government bodies use these entries as a cover for transferring or hiding funds across fiscal years.

The purpose of the study is to determine whether the examined government bodies have established satisfactory practices for inclusion and distribution of expenses at year-end based on a clear and comprehensive set of rules.

The audit is based on the outcome of audits performed in the spring 2014 concerning the fiscal year 2013. Rigsrevisionen took initiative to the study.

Read the 1st chapter of the report (PDF)