Article 2 of Legislative Decree 118/2011 established the adoption of an integrated accounting system whereby the legislator requires Authorities to attach to the financial statements the Balance Sheet and Income Statement, drawn up in full compliance with the general principle of accrual accounting.
Financial and asset accounting, as indicated in accounting standard 4.3, complements financial accounting to record costs/charges and revenues/income arising from transactions carried out by Authorities in order to:
- prepare the Income Statement to represent the “economic benefits” acquired and used during the fiscal year;
- allow the preparation of the Balance Sheet to record, in particular, changes in assets;
- enable the preparation of the consolidated financial statements of each public administration with its instrumental bodies, companies and subsidiaries;
- prepare the internal information base necessary for the analytical determination of costs, and the external one to allow various stakeholders to obtain further information.
To support Authorities in this requirement, we have developed a system called BabylonWeb Financial and Asset Accounting which, regardless of the accounting software used by the Authority, makes it possible to produce the documents necessary to comply with legal obligations in the area of Financial and Asset Accounting.