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Theoretical FrameworkCarague (Creencia,2002) expressed that the accountingsystem then, known as the Standard Government Chart ofAccounts (SGCA), answer the needs of times. But the roleand responsibilities of public managers had become moreand more involved in the everyday needs of the people.They needed a much centralized and comprehensibleinformation in order to manage their scarce resources towhich the inevitable needs for them have by grown leapsand bounds. The accounting system provides valuableinformation that is essential in the public managers’needs to cater a more effective financial management. Thepresence of such needs have to be addressed while takinginto consideration that many of them is deficient in thetechnical knowledge required in accountancy; hence theneed to simplicity and understandability postulate. Toensure commonality in the interpretation of theinformation there is a need for the system to followpolicies and procedures set by standard-settingorganizations.