RECONCILIATION OF AMOUNTS IN BUDGET EXECUTION REPORTS AND FINANCIAL STATEMENTS USING THE EXAMPLE OF THE UNITED NATIONS’ FOOD AND AGRICULTURE ORGANIZATION (FAO)

Aleksandar Savić; Milan Mihajlovic; Radan Kostić

doi:10.59267/ekoPolj25041163S

Authors

Aleksandar Savić Military Academy, University of Defense, Veljka Lukica Kurjaka 33, 11040 Belgrade, Serbia
Milan Mihajlovic Military Academy, University of Defense, Veljka Lukica Kurjaka 33, 11040 Belgrade, Serbia
Radan Kostić Military Academy, University of Defense, Veljka Lukica Kurjaka 33, 11040 Belgrade, Serbia

DOI:

https://doi.org/10.59267/ekoPolj25041163S

Keywords:

budget, financial report, international accounting standards, FAO

Abstract

Budget execution reports and financial statements have a complementary function, but present different data on revenues, expenditures and liabilities. In order to make the differences between these reports clearer, the International Public Sector Accounting Standards (IPSAS) require reconciliation of actual amounts from budget execution reports with data in financial statements. This paper analyzes how different entities approach this reconciliation process, which makes comparisons difficult. The paper points to the need for more detailed guidance to increase comparability between these reports. An analysis of available financial statements of international organizations in the public sector, prepared in accordance with IPSAS, has identified differences in practices and insufficient explanations of these differences. Particular emphasis will be placed on the interpretation of the financial report of the UN Food and Agriculture Organization (FAO). The purpose of such measures is to strengthen transparency and ensure greater comparability of public sector financial reports, which contributes to greater credibility of financial reporting in this sector.

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