Global government accounting development trends indicate strong accruals implementation encouragement. This refers to a threefold harmonization process: the convergence of IPSASs towards IASs/IFRSs, national and international public sector accounting standards harmonization, accounting and statistics systems’ harmonization. The processes are directed towards the reconciliation of accounting/financial reporting and budgeting goals, encouraging the international comparability of the national economies regarding public expenditures. In the context of recent international public sector reforms and in the context of the accession of Croatia to the EU, this paper aims to contribute to the existing literature by indicating the compliance of financial reporting in the Croatian budgetary system with ESA, GFS and IPSASs. We find Croatia particularly interesting to study for several reasons: (a) its existing government accounting/financial reporting system has been based on modified accruals, (b) national public sector accounting standards have not been developed, (c) IPSASs appliance has not been mandatory, but the implementation of certain accounting solutions defined by IPSASs has been recommended by certain Croatian regulations, (d) the general government sector in Croatia conforms to GFS standards, and (e) EU countries follow the ESA standards regarding the general government sector components/aggregates.