Presentation of the annual accounts
The annual accounts of the European Environment Agency include the financial statements, the report on implementation of the budget, and the report on budget and financial management during the year.
The financial statements comprise the balance sheet and the economic outturn account at 31 December, the cash-flow table and the statement of change in capital.
The objective of finanaical statement are to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users. For a public sector entity such as the European Environment Agency, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it.
If they are to present a true and fair view, financial statement must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but also do o in a clear and comprehensible manner which allows comparisions between financial years. It is with these goals in mind that the present document has been drown up.
The accounting system of the European Environment Agency comprises budget accounts and general accounts. These accounts are kept in euro on the basis of the calender year. The budget accounts give a detailed picture of the implementation of the budget. They are based on the modified cash accounting principle1. The general accounts allow for the preparation of the financial statements as they show all revenues and expenses for the financial year and are designed to establish the financial postion in the from of a balance sheet at 31 December.