The accounting purification and reconciliation process (PDCC) is generated, as a consequence of the change in the government accounting system supported by the Government Accounting Standards adopted by Decree No. 234 of December 22, 1997, the Government Accounting System based on IPSAS, on an accrual basis, approved by Decree No. 01-2017-DNMySC of January 3, 2017. (Contraloria General de la República de Panamá, 2018). The accounting purification and reconciliation is composed of administrative, accounting and legal actions that must be carried out by the Public Sector entities, which are responsible for carrying out the processes, which must be programmed to be carried out in the long term, to order the situation of Movable Property, surpluses, shortages, adjustments, reclassifications and incorporations of accounting information, in order to establish the real existence of the rights and obligations that affect the institutional assets. This process will allow financial statements to be reflected without errors. Giving the entities that apply these processes a better presentation of the accountability required by transparency laws. The tool to carry out this work is the Accounting Purification and Reconciliation Process Manual that will provide support to entities from the: (i) legal, (ii) administrative and (iii) accounting points of view.
