In considering the adequacy of adopting accruals and
IPSASs, this paper tests the appropriateness of existing modified accrual
accounting and financial reporting system in Croatian public healthcare
sector. The paper indicates that accounting information system contains
discrepancies and constraints in assuring true and fair view of
organization’s financial position and performance. Our statistics
confirms low level of cost and managerial accounting methods
development, and external and internal financial reporting convergence.
Having in mind its specificities, we argue that Croatian public
healthcare sector represents a segmental accounting subsystem within
the integral public sector accounting framework, where accruals
implementation might prove justifiable.