The Harmonized Accounting Model (HAM2) shifts the focus of accounting by public sector institutions toward a more business-based perspective.
The HAM2 shifts the focus of accounting by public sector institutions.
In light of developments in public sector accounting (new public management, cost-accounting approaches) and stronger influence of the International Public Sector Accounting Standards (IPSAS), a revision of the accounting principles applied by the public sector was inevitable. HAM2 is the harmonized public sector accounting model and a mandatory minimum standard for all municipalities and cantons in Switzerland. The chart of accounts set forth in HAM2 has been harmonized with that of the federal government and meets the requirements of financial statistics. It demands a true and fair view based on the International Public Sector Accounting Standards (IPSAS) yet still offers greater latitude. It not only permits accrual accounting but also still allows the creation of hidden reserves.
Prof. Dr. Reto Eberle