Accrual basis, open up the future of public finance The government has adopted accrual basis accounting system to operate government’s finance more efficiently and to increase transparency of financial information. As a result, 1.The management system for fiscal soundness has changed. 2.The government’s hidden assets have been found. 3.The government’s financial condition can be understood easily through financial statements. 4.The various indices of government can be compared to the indices of other countries. we have obtained the desired outcome. 5th Anniversary: Achievements and tasks (to complete) I’ve heard of the word “accrual basis” many times, and I wonder what it really means and how it is utilized. One of the advantages of adopting accrual accounting is to identify the sizes of assets and liabilities at a glance. Previously, only those debts incurred from contracts were managed. However, as liabilities which are highly likely to be paid(provisions) are also considered liabilities currently, it has gotten more efficient to manage the government’s financial condition. The examples of the liabilities include pension liabilities for public officials and professional soldiers. Since these liabilities began to be recognized, the pension reform has been triggered. Likewise, accrual basis government accounting will play a role to raise a red-flag in times of risky situations. The limitations of accrual basis information include low accessibility and low degree of understanding for citizens due to the complexity of financial statements. In addition, the use of information, such as performance evaluation for the businesses of government departments, is not very frequent. The future improvement directions are (1) internally, to strengthen the education of pubic officials so that they utilize the information more actively and (2) externally, it is necessary to provide tailored information considering the level of intelligence, the demand, and the utilization of information users. Especially, I think it is necessary to use tables, figures, etc., so that citizens understand the government’s financial information better. Domestically, the Statistics Korea (KOSTAT) provides various services, including the Micro Data Integration Service, in order to enable the citizens to understand statistics more easily and conveniently. Externally, the KOSTAT tries to maintain the credibility of information for international comparison purposes. It is also necessary to increase the use of government accounting information by making the information easy to understand. Moreover, it is essential to put much efforts to maintain credibility and objectivity through international comparisons as well as foreign information exchanges. After all, these processes will increase accounting transparency. Although we have made many results from the adoption of accrual basis government accounting for a short period of time, there are still many tasks to be done. We will try hard to make more people utilize the information and make fiscal management more efficient. Thank you.