Maatstawwe vir die vergelyking van finansiële resultate van plaaslike owerhede

Abstract

The analysis and evalua t ion of disclosed financial and other re sul t s in t he fi nancial st at ements of l oc al au t hori t ies cannot be done without me asures. The se measu r es can be in the form of a local authori ty' s past or budgeted r esults , results of other local authorities, or averages and average ratios of comparable local au t horities . No such measures are , however, available at present. The main purpose of this study was therefore to ind i ca te that such measures can be calculated for local authorities in Sou t h Africa. A secondary purpose was to indicate that measures can be used and that they are of assistance for evaluation purposes . . Before measures can be calculated, the information disclosed in financial statements should be based on uniform accounting principles and practices. ·Another purpose of this study, therefore, was to introduce a conceptual framework for the accounting of local authorities in South Africa in order to reduce the differences between the accounting of local authorities and that of the private sector. The research for this study consisted of the following: * * * Extensive literature study on the accounting theory, the need for a conceptual framework and measures to evaluate financial results. Empirical research on the analyses done by treasurers and their view regarding measures. Calculation of averages and average ratios from the f i nancial results of a number of local authorities and the testing there of. From the research the following became evident: * There is a need to formulate accounting standards in the form of principles and practices for local government accounting in South Africa. (v) * Treasurers are of the opinion that measures in the form of averages and average ratios, will assist in the evaluation of results and that there is a need for such measures. The most important recommendations are: * That the Institute of Municipal Treasurers and Accountants attend to the formulation of a conceptual framework (taking the framework of the Accounting Practices Board into account) for local government accounting in South Africa. * That official measures in the form of averages and average ratios be calculated by a suitable institution. * That the use of simplified financial statements by smaller municipalities be investigated.