ROAD TOWN, British Virgin Islands (AP) - This British Caribbean dependency
is adopting an accounting policy preferred by the private sector to better
reflect its wealth and obligations, the territory's top financial official said
Sunday.
Financial Secretary Neil Smith said the switch from cash accounting to
accrual accounting -- a system that determines revenues and expenses when a debt
is incurred rather than after a payment is made -- will take two years to fully
adopt.
"The government is the largest business in the territory and it needs high
quality financial information with which to manage itself," Smith said in a
statement. "Cash accounting is simply too poor a system to deliver that quality
of information."
The world's governments are increasingly adopting accrual accounting, which
international accounting experts recommend to best ensure reliability, he added.
Located just west of the U.S. Virgin Islands, this sun-soaked chain is a
thriving offshore financial center and enjoys one of the world's highest
per-capita gross domestic products.
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