Public sector and management accounting Essay Example | Topics and Well Written Essays - 3000 words

Public sector and management accounting - Essay Example Most accounting standards organisations set standards for the running of companies. This is because such companies are in the majority in most nations. And such companies have stakeholders who demand timely and comprehensive financial statements. However, the public sector has distinct requirements and expectations. Due to this unique posture, the public sector requires different standards and frameworks for accounting. The International Public Sector Accounting Standards Board (IPSASB) sets standards for the public sector in the international community. And these standards are applicable to government agencies and other public sector entities as well as intergovernmental organisations. These standards are known as International Public Sector Accounting Standards (IPSAS). The aim of this paper is to examine the framework for such standards and how they operate. The paper would examine the important framework and systems for the creation and the operation of IPSASs. It would include a critical review of IPSASB and how they operate as well as their scope. The main objective of the IPSAS is to improve the quality of financial reporting by public sector entities (Jorge, 2008). This is to provide a framework for the provision of periodic reports by these entities that exhibit transparency and accountability (Muller-Marques, 2010). IPSAS is a major set of standards that tries to provide the rules and definitive guidance for the creation of financial statements for these public oriented companies around the world. The main reason why a different set of accounting reporting rules are needed for the public sector is that they have a welfare oriented system which is in contrast with the profit-orientation of the private sector. Hence, there is the need to create a system of rules for the public sector. The main scope of the IPSAS is to provide guidelines for central and decentralised