Ms Hilary Murphy-Fagan:

The policy sits within the Department of Public Expenditure and Reform so the NSSO is implementing the decision of that policy taken by the Minister. From a simple point of view, our current system of accounting is cash accounting. It records cash in and cash out. It is a very simple way of recording transactions. When we introduce the second system, which is the accrual accounting system, effectively it will record a cost as it arises and not necessarily record it when it is paid. This is quite a different system from the one we currently operate. While we have had some level of accrual accounting to date, we do not have it as a dual accounting system. What it will mean for the Government primarily, and for the State, is that it will give us a bigger view of commitments that are falling due. It is a little bit like the opposite of prepayments. It will look at what payments will fall due but have not yet been paid, as well as giving the Government a better understanding of the assets and liabilities from a balance sheet point of view. Does that help?