Accrual Practices and Reform Experiences in OECD Countries Financial reporting is one of the foundations of good fiscal management. High quality financial reports are essential to ensure that a governments fiscal decisions are based on the most up to date and accurate understanding of its financial position. Financial reports are also the mechanism through which legislatures auditors and the public at large hold governments accountable for their financial performance. Over the past two decades a growing number of governments have begun moving away from pure cash accounting toward accrual accounting to improve transparency and accountability and better inform fiscal decision making. This study reviews and compares accounting and budgeting practices at the national government level in OECD countries. It also discusses both the challenges and benefits of accruals reforms. Finally it looks at some steps countries are taking to make better use of accrual information in the future. This is a joint publication with the International Federation of Accountants and the OECD.