Other than account settlement based on government accounting (cash-basis) the Tokyo Metropolitan Government (TMG) prepares financial statements through a new public accounting system that has added double-entry bookkeeping and accrual-basis accounting concepts to traditional governmental accounting procedures, and discloses account settlement information to the public.
1. Account Settlement Information based on Government Accounting (Cash-basis)
Japanese local government account settlements contrast actual revenues earned and expenses incurred during a fiscal year (April to March) against budgets prepared on estimated revenues and expenses for the same fiscal year. These documents allow judgments to be made regarding the efficiency and effectiveness of the budget’s use, and also provide a reference for making the following fiscal year’s budget.
Preparing account settlements based on governmental accounting procedures is mandatory under the Local Autonomy Law, and the settlements must also be approved by the assembly.
- Summary of the TMG annual accounts for fiscal year 2015 based on governmental accounting (cash-basis)
2. Account Settlement Information based on Financial Statements (Accrual-basis)
From the fiscal year 2006 closing, the TMG has been releasing financial statements based on the new public accounting system. These comprise (1) a Balance Sheet; (2) a Statement of Operating Cost; (3) a Cash Flow Statement; and (4) a Statement of Changes in Net Assets. These financial statements are prepared based on the accounting standard independently formulated by the Tokyo Metropolitan Government, which, while conforming with generally accepted accounting principles of the private sector, also gives consideration to the special characteristic of public administration.
- Summary of the TMG annual accounts for fiscal year 2015 based on governmental accounting (accrual-basis)