Abstract:
Project accounting is a combination of cost centre analysis and financial accounts. The
basic document for any project is the "Project Preparation Report" (PPR). This is
prepared by the borrower government, with the help of consultants, giving the outline
of the project and details of Project Components. The estimated cost of the project is
compiled under certain broad categories of expenditure and also under the major
components of the proposed project. The project cost is computed, year by year,
taking into consideration the physical and price contingencies, to cover the inflation
factor