OPINION: What Accrual Accounting Would’ve Exposed
While California lawmakers have become notorious for using questionable accounting practices, had they adopted the accrual accounting method been employed, taxpayers today would have significantly decreased debt burdens, writes David Crane in Fox and Hounds Daily. One major source of debt is an agreement made in 1999 that increased pension benefits. While the consequences of this agreement were not fully disclosed in 1999, the use of accrual accounting would have shown the agreement to be a poor financial decision.
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