Monsen - Enterprise Cameralistics

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International Journal on Governmental Financial Management 39

Enterprise Cameralistics

Professor, Dr. Oecon. Norvald MonsenNorwegian School of Economics and Business Administration (NHH)Norvald.Monsen@NHH.NO

It is the merit of Walb first to have proved, that by help of the bookkeepingmethod of classical cameral accounting it is possible to prepare a performance (accrual) result and balance accounts (i.e., enterprisecameralistics) corresponding to the ones that are prepared by using themerchant’s double-entry bookkeeping method (i.e., commercial accrualaccounting), without using the latter method.

(Wysocki, 1965, p.15, translated from German)

Introduction

Cameral accounting (CAM, see Monsen, 2008a) was developed for use in governmentorganizations in the German speaking countries in continental Europe. It consists of twomain versions, namely

administrative cameralistics

(ACAM, see Monsen, 2008b) and

enterprise cameralistics

(ECAM). The purpose of the latter version is to allow forreporting precisely the same type of information as the one reported within commercialaccrual accounting. While the merchant’s double-entry bookkeeping method is used incommercial accounting, a developed version of systematic single-entry bookkeeping isused in enterprise cameralistics. In this way, it is possible to continue to use cameralsingle-entry bookkeeping for all parts of a government organization, namely the

single-entry bookkeeping method of administrative cameralistics

(see Monsen, 2008b, for furt-her details, including numerical examples) and the

systematic single-entry bookkeepingmethod of enterprise cameralistics

for government enterprises. The purpose of this paperis to explain the latter bookkeeping method to a non-German speaking audience.

Bookkeeping within enterprise cameralistics

Like administrative cameralistics, enterprise cameralistics use the cameral account, con-sisting of two sides:

Receipts

and

Payments

(see Table 1). Both administrative camera-listics and enterprise cameralistics use the principle of single-entry bookkeeping, but thisprinciple has been developed in a systematic way within enterprise cameralistics. In thissection, the systematic single-entry bookkeeping method of enterprise cameralistics isexplained, before a numerical example is used in the next section to illustrate thisapproach.

International Journal on Governmental Financial Management 40

Table 1: The cameral account.

Receipts PaymentsBal-ances orresidualdues b/f (BD)Currentdues(CD)Actuals(A)Bal-ances orresidualdues c/f (B)Bal-ances orresidualdues b/f (BD)Currentdues(CD)Actuals(A)Bal-ances orresidualdues c/f (B)

When cameral bookkeeping was developed from single-entry bookkeeping as used withinadministrative cameralistics to systematic single-entry bookkeeping as used withinenterprise cameralistics, the content of the various columns on the cameral account (seeTable 1) was extended as follows: (1) all revenues (receipts) and expenditures (payments)which had occurred were entered in the balance columns, and not only those revenues(receipts) and expenditures (payments), for which payment instructions had been issued,but which were not paid, such as the case is within administrative cameralistics, and (2)assets and liabilities, which are not entered on the cameral account within administrativecameralistics (e.g., fixed assets and long-term debt), as a result of the fact that nopayment instructions have been issued, are also entered in the balance columns withinenterprise cameralistics. By extending the interpretation of the balance columns in thesetwo ways, it becomes possible to prepare performance (accrual) accounts in the form of profit and loss accounts and integrated complete balance accounts. These accounts haveprecisely the same content as the corresponding accounts reported when using themerchant’s double-entry bookkeeping method for preparing commercial accrualaccounts.Table 2 shows the basic version of the cameral account as it is used within enterprisecameralistics. This particular account represents a developed version of the cameralaccount as it is used within administrative cameralistics (see Table 1).Theare two specific cameral bookkeeping rules, which apply separately to the receiptsand payments sides of the cameral account:1) No A-entry without an earlier or simultaneous CD-entry2) B = BD + CD - AThese two rules

techincally

apply both within administrative cameralistics and enterprisecameralistics. The

interpretation

of these rules, however, differs between the two ver-sions of cameral accocunting. Monsen (2008b) uses numerical examples for explainingthese rules within administrative cameralistics. The following section provides anumerical example to explain the rules of enterprise cameralistics.

International Journal on Governmental Financial Management 41

Table 2: Basic version of the cameral account within enterprise cameralistics(Source: Wysocki, 1965, Abbildung 24, p.60, translated from German).

Receipts PaymentsBal-ances orresidualdues b/f (BD)Currentdues(CD)Actuals(A)Bal-ances orresidualdues c/f (B)Bal-ances orresidualdues b/f Currentdues(CD)Actuals(A)Bal-ances orresidualdues c/f (B)Balance account OpeningbalancesIncrease De-creaseEndingbalancesOpeningbalancesIncrease De-creaseEndingbalancesProfit and lossaccountRevenueearnedExpenseincurredCash account CashinflowsCashoutflowsÁccountingentries´, transferswithin the balanceaccounts andbetween thebalance and profitand loss accountsÁcc-ountingreve-nuesÁrti-ficialcashinflowsÁcc-ountingexpen-dituresArti-ficialcashoutflows

Numerical example

Beginning of the period:Cash account 2000Long-term debt 1600Equity 400During the period:(1) Various operating revenues 12000(1a) of which immediate cash inflow 10500(1b) of which later cash inflow 1500(2) Various operating expenditures 11000(2a) of which immediate cash outflow 9900(2b) of which later cash outflow 1100(3) Interest revenues (immediate cash inflow) 50(4) Interest expenditures (immediate cash outflow) 100(5) Loan instalment (immediate cash outflow) 300(6) New loan (immediate cash inflow) 2000(7) Investment expenditure for fixed asset (immediate cash outflow)on the first day of the period 3000End of the period:(8) Depreciation of fixed assets: 0,5%Revenues and expenditures referred to by the numbers (1)-(4) also have a performance (accrual orprofit/loss) effect during the accounting period.

It is common to group the accounts into different ´Accounting Sections´ (AS) withinenterprise cameralistics:

Accounting section I: Performance result accounts (profit and loss account).This section contains the performance result accounts.Accounting section II: Assets.This section contains the accounts for the intermediate or permanent non-performance result effective transactions.Accounting section III: Money and capital accounts.

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