The Financial Statements (or Annual Accounts) of the
Solomon Islands Government are used to:
- provide information to people and organisations on the financial performance of the Government;
- provide information on how the Budget has been implemented and where funds have been spent;
- help the Government in its financial planning.
Section 38 of the Public Finance and Audit Act 1978 requires the preparation of Annual Accounts, and they are prepared using cash accounting principles.
Chapter 2 of the Financial Instructions requires the Solomon Islands to undertake reforms so that it can adopt International Public Sector Accounting Standards (IPSAS) at some stage in the future. The Ministry has started developing the framework and supporting arrangements to allow for moving towards the IPSAS Cash Standard, and being able to meet other international reporting obligations in the future. Much work is still required, and the Government is not ready for adoption at this time.