Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

Investigating the role of accounting in the management of the recent global crisis (Case study: Italy)

Document Type : Review Article

Author
Mozafar Shahmohammadi
Accounting Group, Hashtgerd Branch, Islamic Azad University, Alborz, Iran
Abstract
The recent global Covid 19 disease crisis is unprecedented in its kind. The crisis spread rapidly and affected not only financial markets but also the real economies and many countries in a short period of time through quarantine and social distancing. One of the countries that suffered a lot from this crisis is Italy, which we will focus on in this article. Computational methods for information on solutions, reassurance and conflict resolution play an important role in crisis management. Italy has used special accounting methods and bank guarantees to address government financial issues resulting from the recent global crisis. However, studies show that financial commissions and standardizers in this country still consider cash accounting to be the most targeted and legitimate body of information it has chosen to evaluate its financial performance. But the important thing is that a major reference to cash accounting, regardless of the accrual information as well as the modified accrual information, has a short-term perspective. This view downplays some effects and does not take into account long-term effects. This is exactly what researchers do not recommend. Given the countries' studies and experiences of past crises, accrual accounting seems to facilitate decisionmaking on emergency measures. 
Keywords
Crisis management
Covid 19
Accrual accounting
Cash accounting
Budgeting

Subjects

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  • Receive Date 04 March 2021
  • Revise Date 06 April 2021
  • Accept Date 18 April 2021