CAPITAL ASSETS IN FLEMISH LOCAL GOVERNMENT ACCOUNTING REFORMS: A PRACTICAL EXAMINATION

Prof.dr. Johan Christiaens

Vakgroep Accountancy en Beheerscontrole, RUG

St Pietersplein 5

9000 Gent, Belgium

Tel + 32 (0) 9 264.35.32 of 40

Fax + 32 (0) 9 264.35.88

E-mail johan.christiaens@rug.ac.be

Abstract

Although a few researchers and standardsetters have made some efforts over the last 20 years, capital assets are in terms of financial accounting still the issue of many unresolved questions.

This paper aims at presenting an overview of the current differing accounting standards or point of views and how they are applied in Flanders (i.e. in municipalities, OCMWs, provinces).

The lack of accounting research on this topical subject and the lack of a generally accepted conceptual accounting framework, lead to the research questions: RQ1 Are the Flemish accounting regulations considering capital assets in accordance with internationally existing concepts? RQ2 Are the Flemish accounting regulations considering capital assets in harmony? RQ3 What are the major areas (if any) of non-accordance and differing accounting practices?

The approach is technical and considers a literature review (standardsetters, Pallot, Lapsley, Rowles, Anthony, Cheng, Harris, Mautz, ...), an examination of the adoption in Flemish local governments and an empirical review of accounting practices. Finally, some attempts are made to canalize the existing ideas and point of views particularly looking at the practical problems (e.g. capital assets in the first balance sheet).