The accounting of the public sector in Estonia is regulated by the Accounting Law and the General Guidance of the Public Sector Accounting. The accounting principles are fully accrual based and consistent with IPSAS.
Starting from 2004 the new Accounting Law became effective for central government, local governments and other non-business institutions of the government sector. Under this law the Ministry of Finance has the authority to establish accounting principles and terms of reporting to all institutions of the Estonian public sector, including business companies, controlled by the public sector entities. The Ministry of Finance is responsible for the consolidated financial statements of the state, of the government sector and of the public sector. Annual report is presented by the Ministry of Finance to the Government of Estonia, who submits it to the Parliament.
From the year 2004 the minister of finance enforced General Guidance of the Public Sector Accounting. This prescript includes:
- general accounting principles for the public sector entities;
- the uniform chart of accounts, obligatory for the reporting purposes to the public sector institutions (in practice all units of the central and local governments use the same chart of accounts as well as many other public sector institutions);
- reporting form and due dates about the reports, inserted via internet monthly or quarterly in the public sector financial statements database of Ministry of Finance.
The chart of accounts consists of five different types of codes:
- accounts;
- transactions partners codes (to verify intra-group balances and for automatic consolidation process);
- activity codes (COFOG);
- source codes;
- movement type codes (to prepare automatically cash-flow statements and other notes to the financial statements).
All members of the Government Sector present their reports monthly, others (public sector business enterprises and financial corporations) quarterly.
The State Accounting department is responsible for:
- preparing and improving the General Guidance of the Public Sector Accounting;
- collecting and checking the financial statements of the public entities;
- preparing and presenting the consolidated financial statements of the State, the Government Sector and the Public Sector.
Contacts of the State Accounting Department:
Ms. Juta Maar
Head of the state accounting department
juta dot maar at fin dot ee
+372 611 3449
