Presidential Decree 54/2018 | Public Sector Accounting

Presidential Decree 54/2018 introduces a new approach to public sector accounting and financial reporting, establishing a unified framework that fundamentally reshapes financial management across both Central and General Government.

What Is Presidential Decree 54/2018?

Presidential Decree 54/2018 goes beyond the introduction of a new accounting standard. It represents a fundamental change in the way public sector financial data is organized and presented, laying the foundations for more transparent, reliable and comparable public financial management.

It establishes a comprehensive accounting framework covering both accounting and budgeting, enabling the consistent presentation of financial information across public sector entities.

Key Features

• Unified Classification: Introduces a new classification system with unified coding for both budgeting and general accounting, facilitating the comparison and analysis of financial data.
• New Financial Statements: Introduces new financial statements, including the Statement of Financial Position (Balance Sheet), Statement of Financial Performance, Statement of Changes in Net Assets/Equity, Statement of Cash Flows and Notes to the Financial Statements, as well as new budgetary reports.
• Adoption of International Accounting Standards: The new framework follows the principles of the International Public Sector Accounting Standards (IPSAS) and incorporates the classifications and concepts of the European System of Accounts (ESA 2010).

Benefits for Public Sector Entities

The implementation of Presidential Decree 54/2018 provides several important benefits:

• Reliability: Provides reliable and comparable financial information across General Government entities.
• Transparency: Enhances transparency in public financial management by making financial information more accessible and understandable.
• Comparability: Enables financial data to be compared across different public sector entities and against international standards.

Challenges and Requirements

Transitioning to the new accounting framework requires:

• Training: Public sector entities need appropriate training on the new standards and procedures.
• Process Adaptation: Existing processes for managing assets, inventories and receivables need to be adapted to the new requirements.
• Technology Support: The adoption of appropriate information systems, such as Government ERP solutions, is critical to the successful implementation of the new framework.

Limeone Government ERP

In response to these changes, Limeone Solutions provides specialized technology solutions designed to meet the requirements of Presidential Decree 54/2018 and support public sector entities throughout their transition to the new accounting framework.

Through the Limeone Government ERP platform, we have developed a modern and fully compliant information system that incorporates the requirements of Presidential Decree 54/2018.

The Limeone Government ERP platform supports:

• Unified coding and classification
• Management of all required registers, including fixed assets, inventories, customers, suppliers and leases
• Automated preparation of financial statements
• Comprehensive budgetary and financial reporting
• Integration with myDATA
• B2G electronic invoicing and integration with GSIS
• Integration with DIAVGEIA and KIMDIS platforms
• Electronic payments
• Specialized requirements tailored to each public sector entity

With a strong focus on compliance, efficiency and adaptability, Limeone Solutions serves as a strategic technology partner for public sector entities seeking to successfully address the requirements of the new financial management framework.