INDICATIVE ASSESSMENT OF THE FINANCIAL SITUATION OF LOCAL GOVERNMENT UNITS

Abstract

The Indicative assessment is most often equated with the assessment of financial statements of economic entities, on the basis of which the entity's authorities make certain decisions concerning, inter alia, its functioning, development or introduction of a new product to the market. On the other hand, the indicative assessment can also be used to assess the financial situation of local government units. These indicators also enable the assessment of its functioning, implementation of specific tasks from the moment of planning to their implementation and meeting the needs of the local community. The onlydifference is that local government units deal with public money, and economic units must generate profit that can be allocated to their development. The aim of the article is
to present local government units subjected to the indicator assessment, similarly to economic units.