Possibility of Accrual Accounting Application in Case of Active Reserve Forces of the Czech Army
Possibility of Accrual Accounting Application in Case of Active Reserve Forces of the Czech Army

Author(s): Miroslav Krč, Vladimír Golik, Aleš Olejníček, Vladan Holcner
Subject(s): Military policy, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: accrual accounting; active reserve forces; cost centre; analytical accounts; synthetics accounts;
Summary/Abstract: The article „Possibility of Accrual Accounting Application in case of Active Reserve Forces of the Czech Army” analyses the application of the accrual accounting by way of Active Reserve Forces example. Accrual accounting is considered as a potential tool of resource management system effectiveness increase in the Czech Army. The Active Reserve Force is monitored as a cost centre that is managed by actual and predetermined costs. The three training situation are simulated. The analysis takes into account only activities directly connected with training of the Active Reserve unit influenced by training type and military vehicles involvement. The data are displayed by synthetic and analytical accounts. The training price of separate Active Reserve soldiers is generated through the synthetic and subsidiary accounts under accrual accounting system. Each Active Reserve serviceman have assigned own analytical cost account. This account have displayed all cost items associated with his training. The closing balance of all analytical accounts provides the sum of total costs that were connected with Active Reserve member training.

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