New Delhi: Controller General of Accounts (CGA), which is in the process of reforming accounting procedure, plans to adopt a modified accrual-based system with advanced software to check frauds in government books, official sources said.

"As part of the latest initiative in accounting reform, CGA is presently examining the merits of transition from a cash-based system of accounting to an accrual-based system," Additional Controller General of Accounts B S Thapliyal said in New Delhi.

To debate on this issue, World Bank and CGA is organising a 3-day seminar on 'accounting for results' beginning in New Delhi on June 9, to be attended by top government officials from Pakistan, Afghanistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Mauritius and Myanmar.

World Bank and IMF (International Monetary Fund) officials will also participate in the seminar to be inaugurated by 12th Finance Commission Chairman C Rangarajan.

Although the accrual-based system is in practice in matured economies, official sources said further modification is required as there has been a series of accounting scams.

"CGA has the mandate for ensuring that accounting practices and systems of government are not only soundly structured but are also in line with best international practices," Thapliyal said.

He said CGA has initiated e-governance in the Centre's accounting systems, computerisation of pension disbursements and advisory services for restructuring of PSUs (Public Sector Undertakings).

CGA and NIC has also developed a software "COMPACT" which would reduce time of transaction, improve accuracy and minimise frauds, he said.

PTI