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Budget Reporting

Budget Reporting

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Published by Atif Rehman

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Published by: Atif Rehman on Jul 10, 2011
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03/09/2013

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To be useful, budget reports must be presented in a timely manner. All information needed to
prepare complete and accurate budget reports may not be available in time for preparation of the
budget or legislative action may delay the approval of the budget. Conversely, if reporting is
delayed until all aspects are known, the information may be highly reliable but of little use to
users who have had to make decisions in the interim. In achieving a balance between relevance
and reliability, the overriding consideration is how best to satisfy the decision-making needs of
users. In addition, a balance must be maintained between benefit and cost to assure that the
benefits derived from the budget reports do not exceed the cost of providing it. Further,

RESEARCH REPORT ON BUDGET REPORTING

37

professional judgment must be applied to achieve a balance between the qualitative
characteristics in order to meet the objectives of the budget reports.

Recommendation #9: Budget reports should meet the qualitative characteristics
(understandability, relevance, reliability, and comparability) of financial reporting
specified in IPSAS 1.
In order to assure that these qualitative characteristics are achieved,
external validation (after considering the constraints on relevant and reliable information) of the
budgetary data by the external auditor will be necessary.

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