Accountant Hierarchy and its Policies
Accountant hierarchy is prevalent is every field of accountancy. There is a hierarchy prevalent in the development, adoption, and also in implementation of accounting standards and accounting systems. The most basic part of the hierarchy is formed by the framework of accounting system. The next level present in the accountant hierarchy are the standards, addresses specific categories of accounting and reporting needs which are used in all types of participatory organizations. The accounting policies relevant for specific entities apply the concepts of framework and standards to that entity. After the concepts have been applied, the detailed instructions are given to bookkeepers and accountants on how to record transactions and other events. This way the results achieved are in agreement with policies and standards and work best within the framework of accounting.
There should be a single framework and a single set of standards for the entire public sector in any country. The accounting systems should also allow gathering of additional information for managerial and for fiscal statistical reporting and for other purposes as well. For example, capital assets should be recognized under the accumulation basis for a depreciated historical cost, according to standards for chief services. Also, conventional cost or contemporary value should be recorded for the same assets as required by both accounting and statistical reporting standards. The appraisal of assets at current value or current cost can be disclosed in the general purpose financial statements or in the notes of the financial statements.
Accounting policies for each public sector accountant hierarchy organization will have a common methodological base for function. Although due to differences between state and local governments and other special purpose public sector bodies, some accounting policies will be public sector entity specific and some might be applicable for only specified individual entities. Accounting instructions are sometimes similar to many public sector entities. Although every entity has its own accountant hierarchy and operation mode within its own managerial and organizational procedures, new processes, time frames and accounting instructions will be developed at the entity level with specific application to that entity.