Resource consumption concept

Resource consumption concept is a characteristic feature of the new public accounting. Not only the money consumption (money consumption concept) is recorded, as is the case in traditional public budgeting and accounting, but the actual consumption of resources (new municipal accounting).

This means, in particular, the consideration of depreciation on fixed assets, the application of imputed costs to the tied capital, the recognition of provisions for liabilities that have already arisen but will only become cash-effective in the future (e.g. pension provisions) and changes to the coverage principles in the sense of the compensation of expenses and income.

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