For the first time in it's over 160-years history as independent state, Liberia has taken a giant leap to ensuring accountability by adopting a new accounting standard.

The government through the Ministry of Finance Wednesday, November 18, 2009, announced the official adoption of the Cash Basis International Public Sector Accounting Standard (IPSAS) as the official accounting standard for all central government financial transactions.

The Cash Basis IPSAS will be the required accounting for the preparation of all government's financial statement, including revenue, budget, and expenditure and debt management for the period covering1st July 2009 to 30th June 2010, Finance Minister Augustine Kpehe Ngafuan told a news conference in Monrovia.

He said for the past generations, Liberia, unlike other countries, has not had its own accounting standard, and described the new standard as a "big leap towards modernity, transparency and accountability".

He said the development was part of the government's efforts aimed at making wide-ranging reforms in public financial management since 2006.

"[The accounting standard] is yet another milestone on the government's path towards comprehensive public sector reform which, among others, has witnessed the coming into existence of the General Auditing Commission, Liberia Anti-Corruption Commission, Law Reform Commission and the Public Financial Management Law," Minister Ngafuan said.

The adoption of the new accounting standard followed consultations with the General Auditing Commission, the Central Bank of Liberia, the University f Liberia, among other stakeholders, including international partners.

The Finance Minister disclosed that the government will adopt a "full accrual basis accounting" system, "But because of the current fiscal policy of cash based balanced budget, it was only logical at this point in time to begin with the cash basis accounting."

Minister Ngafuan said the new accounting standard will be taught at universities in the country so that graduates will not have to go through extra training when they are considered for jobs in government.