Assets
Buildings, infrastructure, land, equipment and other resources used by the government.
The government has the data. The key is whether it puts that data to use.
Is government data used to improve public finances?
Government accounting information shows not only cash flows, but also assets, liabilities, expenses, revenue and the government's long-term financial position. It can inform the budget process, strengthen accountability for public finances, and support decision-making and management.
At a glance
What is government accounting?
Government accounting provides a comprehensive picture of public-sector finances. It captures not only cash flows, but also assets, liabilities, expenses, revenue and other economic events that help assess the government's financial position.
Accounting information helps answer fundamental questions
What does the government own? What liabilities has it incurred? What expenses arise from delivering public services? How does its financial position change over time?
Liabilities
Obligations and debts that have arisen and must be settled, either now or in the future.
Expenses and revenue
Information on the consumption of economic resources and the value associated with public-sector entities' activities.
Trends over time
The ability to monitor changes in financial position and compare individual reporting periods.
Beyond cash flows
Why accrual accounting?
A cash-based view shows when money is received or paid. Accrual accounting adds information about when an economic event actually occurs and how it affects assets, liabilities, expenses or revenue.
Understand what the government owns
An investment is more than a one-off cash outflow. The accrual-based view also recognises the resulting asset and its value in subsequent reporting periods.
Recognise liabilities as they arise
An obligation may arise before payment is made. Accounting can therefore recognise a liability in the period to which it relates.
Understand expenses more clearly
An expense is recognised in the period in which it is incurred, even if the invoice is paid later. This makes results for different periods more comparable. An expense represents the consumption of economic resources—not merely a cash payment. It therefore provides a better measure of financial performance than cash movements alone and enables more meaningful comparisons of financial performance.
Gain a longer-term perspective
Accounting information makes it possible to monitor not only current-year cash flows, but also changes in the value of assets, liabilities and the government's financial position over time.
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The point at which an economic event occurs is not necessarily the point at which cash is paid.
This timing difference is one of the key reasons accrual accounting provides a more complete information base.
Expert perspectives
Why the accrual perspective matters
Insights from the Making Use of Government Accounting Information conference (7 April 2026)
“Accounting is a fundamental source of information for users' economic decision-making.”
doc. Ing. David Procházka, Ph.D.
Department of Financial Accounting and Auditing, Prague University of Economics and Business
“Government accounting in the Czech Republic has the potential to serve its users well.”
Ing. Luboš Rokos
Director of the Financial Audit Department, Supreme Audit Office of the Czech Republic
“Reliable macroeconomic statistics cannot be compiled without reliable accrual data and sufficient granularity.”
doc. Ing. Václav Rybáček, Ph.D.
Director of the Macroeconomic Statistics Department, Czech National Bank
“Relevant data are a prerequisite for sound decision-making and transparency.”
Ing. Jiří Fojtík
Director General of the Financial Management and Audit Section, Ministry of Finance of the Czech Republic
Real-life examples
Select a scenario to see how it is reflected in government accounting.
Church restitution payments
Since 2013, the government has been paying compensation to churches over a 30-year period. The outstanding liability is adjusted each year for inflation recorded two years earlier.
What happened
Outstanding liability increases
In 2024, high inflation (more than 15% in 2022) resulted in an inflation adjustment to the outstanding liability that exceeded the regular annual instalment.
Cash-based view
Annual instalment
Shows only the amount of the annual repayment.
Accrual-based view
Outstanding liability and inflation adjustment
Shows the outstanding liability, the inflation-related increase, and how the balance has evolved over time.
Why this matters:
Accrual accounting shows that, as a result of high inflation, the outstanding liability in 2025 had returned to its 2017 level.
School
A public-sector entity builds and equips a new school building.
What happened
Investment in the building and equipment
The project creates a building and other assets that will support education for many years.
Cash-based view
When invoices are paid
The cash-based view shows the cash outflows when construction work, technology and equipment are paid for.
Accrual-based view
Assets acquired and consumed over time
The accrual-based view shows whether an asset is still under construction or has been brought into use, and then allocates its use and wear and tear over the relevant periods through depreciation.
Why this matters:
This makes it easier to distinguish investment in non-current assets from the school's day-to-day operating expenses.
Healthcare
A public hospital receives medical supplies in December and pays for them in January.
What happened
Supplies delivered in December
The economic event arises when the supplies are delivered and used in the provision of care.
Cash-based view
Payment is made in January
The cash-based view records the expenditure when the hospital actually pays the invoice.
Accrual-based view
The expense is recognised in the correct period
If the supplies were consumed in December, the expense is recognised in December and a trade payable is recognised until payment is made.
Why this matters:
Healthcare expenses can be attributed to the period in which the care was actually provided.
Grant
A municipality receives a grant in December to renovate a school, but uses part of the funding only in the following year.
What happened
Grant paid in December
The grant provider transferred the funds to the beneficiary.
Cash-based view
Recognition follows the cash transfer
Expenditure is recognised when the grant is paid.
Accrual-based view
Recognition reflects how the funds are used
Accounting shows whether the grant has been used or whether it still represents an advance. If the grant conditions are not met, an obligation to repay part of the funding may arise.
Why this matters:
The cash-based view shows how much the government has disbursed. The accrual-based view shows how much of the funding has actually been used and whether any amount may have to be repaid.
Government building
The government owns an office building that it uses over the long term.
What happened
An asset provides services over time
The building has value, requires maintenance and its service potential changes over time.
Cash-based view
Acquisition, repairs and operating payments
The cash-based view records individual outflows when they are paid.
Accrual-based view
Asset value and consumption
Accounting recognises the building as an asset and tracks its carrying amount, depreciation, and maintenance and repair expenses.
Why this matters:
This ensures that the government does not lose sight of the value of its assets simply because no cash is paid for them in a particular year.
Litigation
The government is involved in litigation that may give rise to a payment obligation in the future.
What happened
A potential obligation exists
The likelihood and potential financial impact of the ongoing litigation must be assessed.
Cash-based view
No payment, no cash expenditure
Until payment is made, the cash-based view will generally recognise no expenditure.
Accrual-based view
Risk information can be recognised earlier
Depending on the circumstances, the accounts may recognise a probable obligation as a provision, or disclose a contingent liability where an outflow is not probable or the amount cannot be measured reliably. This provides information before any payment is made.
Why this matters:
Users of accounting information can learn about significant financial risks before cash leaves the government's bank account.
Fire service
A municipality finances the acquisition of new fire engines with a loan.
What happened
The municipality has acquired new fire engines using loan financing.
The vehicles improve public safety and enable firefighters to respond more effectively.
Cash-based view
Loan proceeds, repayments and operating expenditure
Shows cash movements only: loan proceeds received, loan repayments and routine operating expenditure on the fire engines.
Accrual-based view
Non-current assets and depreciation
Shows not only cash flows, but also the new vehicles recognised as non-current assets, their depreciation over time, and the loan liability, including the outstanding balance yet to be repaid.
Why this matters:
Cash-basis accounting shows how much has been paid. Accrual accounting also shows which assets the organisation owns, what liabilities it has, and whether it will be able to continue delivering services in the future.
Video for this example
Watch the Fire Service video
Watch on YouTube →
Latest updates
Articles on government accounting, recordings of conferences and workshops, and other news and perspectives, including posts from social media.
VideoIn English
Statement by Thomas Müller-Marqués Berger
Video about new website on public sector accounting
10. 11. 2026
Watch on YouTube
VideoIn English
Video about new website
Video about new website on public sector accounting
10. 11. 2026
Watch on YouTube
Press releaseIn English
Government accounting can help improve budget planning. The Czech SAO launches a new website on public sector accounting
Press release about new website on public sector accounting
10. 11. 2026
Visit nku.gov.cz
PublicationIn English
Joint report by the SAO and Prague University of Economics and Business in english
Use of central Government Accounting – a joint report by the SAO and the Faculty of Finance and Accounting at Prague University of Economics and Business
10 November 2026
View report
ConferenceIn Czech
The Conference Accounting 2027+ (Transition to a New Era)
Conference organised by the Union of Accountant and the Czech Chamber of Tax Advisers
2. 11. 2026
LinkedIn - Union of Accountants
ArticleIn Czech
Practical use of accounting data in the public sector
Special supplement to the Ministry of Finance Information Bulletin: Public Sector Accounting (10/2026)
3 September 2026
Read article
ArticleIn Czech
Expert conference on the use of accounting information
Article in Accounting for Non-profit Organisations and Municipalities (Czech-language journal, 2/2026)
8 June 2026
Read article
ArticleIn Czech
Making Use of Government Accounting Information
Article in Internal Auditor (Czech-language journal, 1/2026)
1 April 2026
Read article
ArticleIn Czech
Government accounting information is underused
Article in Auditor (Czech-language newsletter, 4/2026)
29 April 2026
Read article
ConferenceIn Czech
Conference: Making Use of Government Accounting Information
Professional conference organised by the Supreme Audit Office of the Czech Republic
7 April 2026
Visit nku.gov.cz
ArticleIn Czech
Making Use of Government Accounting Information
Article in Accounting for Non-profit Organisations and Municipalities (Czech-language journal, 4/2025)
8 December 2025
Read article
VideoIn Czech
Video accompanying the joint report by the SAO and Prague University of Economics and Business
Video accompanying the joint report by the SAO and the Faculty of Finance and Accounting at Prague University of Economics and Business, “Making Use of Government Accounting Information”.
13 November 2025
Watch on YouTube
PublicationIn Czech
Joint report by the SAO and Prague University of Economics and Business
Use of central Government Accounting – a joint report by the SAO and the Faculty of Finance and Accounting at Prague University of Economics and Business
13 November 2025
View report
Press releaseIn English
State accounting can do more than the state currently uses it for
Press release on the joint report by the SAO and the Faculty of Finance and Accounting at Prague University of Economics and Business, “Use of central Government Accounting”.
13 November 2025
Visit nku.gov.cz
ConferenceIn Czech
Data for Decision-Making Conference
Professional conference organised by the SAO of the Czech Republic
13 November 2025
Visit nku.gov.cz
Key milestones in the Czech Republic's public-sector accounting reform
Selected milestone2007
Government Resolution of the Czech Republic No. 561/2007
Formal launch of the accounting reform.
Professional data and resources
State Treasury Monitor
Ministry of Finance Information Portal
(monitor.statnipokladna.gov.cz)
Public Finance Accounting Reform – Government Accounting
Ministry of Finance website
(mf.gov.cz)
Public Sector Satellite Account
Czech Statistical Office website
(csu.gov.cz)
ARAD – Economic Data
Czech National Bank website
(www.cnb.cz)