Public And Private Sector Accounting

After reading this article, the author gave readers a bunch of ideas about the public policy field. The author illustrated the definition of public policy clearly, explained specifically the broad field of public policy, and absolutely brought out reliable theories. It is a very useful chapter for the novice of public policy or public administration. By all means, this article provides multidimensional fashions to analyze or determine the

A public sector business is a business that usually composed of organisations that are owned and operated by the government (PrivacySense2015).

4. The paper must logically develop the thesis in a way that leads to the conclusion, and that development must be supported by facts, fully

What are the main ideas and/or issues of the article as it relates to the chosen topic?

16. Which of the following federal officials is a "principal" of the Joint Financial Management Improvement Program who considers and approves or disapproves accounting and reporting standards recommended by the Federal Accounting Standards Advisory Board?

The paper will include an overall analysis of what

When talking about accounting, the first thing we should know is the history of its development. Traditionally, the development is from inductive to deductive. Inductive theory assume what is done by the majority is the most appropriate practice. However, It did not seek to evaluate the logic or merit of

Public sector refers to the part of the economy concerned with providing essential government services. The public sector includes such services as a police, military public roads, primary education and healthcare for the poor.

The need for financial stringency in public organizations due to budgetary pressures and tax resistance coupled with the need to Managing /balancing budget deficits and provide quality services with a reduction in revenue has always been a major challenge for public organizations. The need to save money and at the same time provide quality services, had forced government agencies to privatize and contract out. Recently, there is greater involvement of the private and nonprofit sector in public service delivery. More and more government functions in service delivery are now carried out by private and nonprofit organization. This is one part attributed to the belief that private organizations can provide services more efficiently and effectively than government operated services. And the other is the fact that it is cost effective and takes a lesser time frame. These two process are indeed unarguably beneficial to the government and private sector as well as the beneficiaries, but they can be also very daunting accompanied with huge challenges especially when not executed in the rightful manner. The case of the crummy contractor by Rainey depicts such a complex situation , where the process of contracting out was poorly conducted. The case highlights the demand for privatization and contracting-out and most importantly some of the challenges of privatization and contracting in government organization. it goes on further to identify some crucial pointed to be

However, there are many other differences between public and private organizations. The funding for public agencies derives mostly from taxation, which contrasts with private agencies receiving funds predominately from consumers in the form of fees. In the public sector, organizations are largely controlled by political forces, which also results in the imposition of constraints by the political system. Subjection to constraint results in frequent changes in policies within public organizations. The owners and shareholders of private organizations have a direct incentive to monitor the behaviour of managers to promote better performance and financial gain.

In order to understand the difference between public and private accounting, we must first understand what accounting is. Accounting is simply an information system used to identify and communicate financial information to users of that information. Accurate, reliable and pertinent information is extremely important in evaluating a company’s financial position in order to attract investments. The accountant’s role is to ensure, that the information presented is in fact a truthful representation of the company. Falsifying information, whether intentional or not can have serious, even legal implications for the accountant. That’s why

“Good” accounts must accord a series of principles. In general, good principles of social accounting have to be inclusive, involving dialogue with stakeholders; to be complete, highlighting the key areas of the individual company’s activities; to be embedded within the organization; to be comparable, undergo external verification, and give room for continuous improvements. These principles should take both companies own management practices and the performance measurements comparison with other companies into consideration (Montgomery and Porter, 1991). Such principles have to be incorporated within the

Public organizations and the public administrators have an important duty of promoting and maintaining democratic government especially by ensuring good governance. Social and economic development can be achieved through good governance. Collaborative governance is a primary component of good governance (Ansell & Gash, 2008). Admittedly, public management reforms are fundamental to improving the abilities of various nations to address issues that touch on democratic government. Some of the

For decades, there has been a separation between public and private companies and the method in which they account for their activities. As a result, there can be great complexity in the preparation of the financial statements for private entities who have been required to conform to the reporting standards of public companies. This has led to poor comparability among companies and has left investors frustrated. In 2012, as an attempt to remedy this situation, a council known as the Private Company Council (PCC) was established. Moving forward in this paper, the reader shall gain a greater understanding of the duty and purpose of the PCC. In addition, you shall gain a general idea of how it is working towards a more common ground for public and private companies to co-exist in regards to the accounting standards of which they abide.

The cultural shift and market pressures prompted birth of the first truly comprehensive regulation of the independent Poland which is the Act on Accounting, 1994 (CPAA). This document was noticeably modeled on the 4th Directive (Formats and Rules of Accounting), 7th (Consolidated Accounting), and 8th (Qualifications and work of Auditors) EU Directives. As it is visible the concepts and notions included in the Accounting Act also relate to the last issued decree of 1983. Therefore, for accounting 1994, it determined the Western oriented direction in line with socio-political movement with simultaneous. The next important regulation is the Decree of Minister of Finance of August 1995 which resolved amongst other the issue of auditing the budgetary sector. Noticeably, solutions unique to Poland, feeding from West, East and within were developed. Very important requirements of this act, were recognition of only ‘acquired goodwill’ and use of ‘purchase method’ only when accounting for mergers and acquisitions. In these respect it can be noted that the solutions offered in IAS 38 IFRS 3 Business Combination. Additionally Poland already then was strongly recommending the cost method, which the current IAS 40 requires, even though the solutions at the time (ED 40) were recommending the equity method for long term investments measurement. Moreover already then, not in line with either EU 4th Directive or IAS 7 at the time, Poland was one of the few in Eastern Europe