A Study on How to Improve the Accountability of National Defense Financial Information for Government Sustainability

Accrual-based accounting enables external users to make informed decisions by reporting an entity’s management performance them. It also helps managers accurately record resource usage and increase efficiency. Despite the Republic of Korea’s expectations for introduction accrual-based in national from 2011, aimed at achieving efficient comparable private companies, results audit Board Audit Inspection indicate that settlement accruals is still insufficient. This paper examines whether financial reports compiled are suitable competition decentralized organizations. We present status Ministry National Defense analyze actual cost index control use defense resources information. For our analysis, we compared analyzed costs two divisions seven brigades using cash-based budget spending based on accrual basis, data system 2015 2016. found comparison result between nominal was different. In particular, reflects degree decision-maker who manages resource. Our show evaluating efficiency units can improve Ministry’s accountability achieve purpose introducing double-entry bookkeeping.