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Brussels, 16 March 2005
This year witnessed the introduction of a new and improved accounting system for the European Commission, marking a great step forward for precise, transparent and up-to-date accounting of income and expenditure. European taxpayers expect no less, and the new system of Accrual Based Accounting, or ABAC, will deliver what they seek.
ABAC represents a great advance in several respects. Information fed into the EU’s general accounts, which include not only cash transactions but also assets, debts and liabilities will be intergated into a single system. These accounts are distinct from the budgetary accounts, which log financial transactions as they happen (cash based accounting.)
ABAC will bring the Commission into line with International Public Sector Accounting Standards or IPSAS. Computer systems will be enhanced to integrate existing functions, introduce new ones and improve security.
This process is part of a wider drive to introduce cultural change across the Commission’s administrative structure.
The beneficiaries from this reform fall into three camps:
The taxpayer can rest assured that:
Managers will benefit from:
The bodies controlling EU accounts – the Court of Auditors, European Parliament and the Council – will see their task greatly facilitated by:
Please find further information on the new system at
and on the management of the EU budget at: