ABSTRACT: (SOME ISSUES ABOUT TH TRANSITION PERIOD FROM THE TRADITIONAL TO THE HARMONIZED ACCOUNTING SYSTEM OF LOCAL AUTHORITIES). The European integration process gave a significant boost to the need to harmonize national public accounting. Legislative Decree 118/2011 aims to harmonize public administration’ schemes and accounting standard setting. The new rules, after a first testing period, became effective. The research provides a first contribution aimed to analyse the impact of the new financial basis of accounting principle on positive and negative residuals management and, indirectly, on the end year result. This first exploratory analysis regards local authorities involved in the three-year testing period. In order to better highlight the issues concerning the harmonization introduction, the research analyses effects by splitting up local authorities according to dimension and geographical localization. The study examines balance sheets since 2011st up to 2014th, identifying the consequences of applying the strengthened cash accounting standard on local authorities’ management. The research, by using testing local authorities’ experience, tests if the new strengthen cash accounting standard helps with improving residual management and, indirectly, the annual result of local authorities. Results highlight a progressive decrease of the residual (active and passive) stocks, both at national and a local level. Moreover, results show an upturn in the financial situation due to a simplification in residual management and to a general improvement in the financial situation. This research highlights the first consequence of the accounting harmonization process in the local authorities’ balance sheet. The study poses the base for further analysis about not only testing local authorities but also to about others local government involved in the accounting harmonization process.
KEYWORDS: accounting harmonization, local authorities, cash accounting
