OECD Member countries are at the forefront of fiscal transparency practices. Delegates discussed various aspects of the draft OECD Best Practices for Fiscal Transparency which draw together examples highlighting best practices in this area based on Member countries' experiences. Delegates consider the document as an important reference in order for Member and non-Member countries to improve their fiscal transparency practices. Delegates emphasised, however, that this should not be interpreted as a legal code. A working group was formed in order to finalise the document for general release, including how it can best complement the International Monetary Fund's Code on Fiscal Transparency.
Fiscal transparency is a dynamic area.
The OECD Best Practices need to be updated in future years in order to take account of new innovations being made in this area. Accrual Accounting and Budgeting A significant number of Member countries have been adopting accrual-based accounting and budgeting practices to one degree or another. This move has taken very different forms in Member countries. Fiscal target setting in an accrual environment is a new challenge for an increasing number of Member countries who have adopted accrual budgeting, or are in the process of doing so. Delegates welcomed the efforts of the Public Sector Committee of the International Federation of Accountants to harmonise public sector accounting standards.