Group 1

1. Group 1 Russian Federation, Armenia, Ukraine, Kazakhstan, Kyrgyzstan, Uzbekistan, Belarus, Moldova, Tajikistan

2. The discussion focused on accounting and reporting reforms • Russian experience of transition to accrual method is of great interest for many countries • Including analytical approach to justification of the needs in accrual method, definition of goals and objectives comprehensible for non-specialists (enhancing stability, transparency and accountability, increase the role of the state in public finance management) • Sequence of transition (defining of subjects and objects of accounting; defining, standardization of accounting and reporting rules and principles, unification of documents and processes; on-line methodological support of the reform)

3. Also, the majority of the countries are very interested in the activity on preparation for implementation of international accounting standards • Official publication of IPSASin Russian • Draft of developed standards and respective methodological materials • Methodological solutions of certain complicated technical issues (for instance, consolidation of reports) • Interesting possibilities for cooperation between countries in development of methodological solutions of other complicated issues (Ukraine - Russia– Kazakhstan?)

4. … as well as • Approach to budget classification and chart of accounts integration • Standardization of public institutions’ reporting • Accounting of revenues by the administrator on accrual basis • Mandatory aggregation level required by the MoF • Possibility for accounting centralization once future integrated information system is implemented

5. Other interesting aspects of the reforms • Budget users (in future – renunciation from guaranteed budget financing, transition to market-based principles in public services • Unified portal for public procurements (though integration with the treasury system is still to be implemented) • Elements of performance-based financial motivation system used in the treasury