Public sector accounting: shifting concepts of accountability

Abstract

Allan Barton held strong views about governmental accounting reforms that failed to recognize the unique characteristics of the public sector, particularly the need for public accountability. The Allan Barton memorial lecture of 2013, developed in this paper, pointed out that Australia's public finance legislation reinforces the need for public accountability, but through delegated regulatory powers terms such as accountability and public accountability are undergoing subtle reinterpretation. At issue is whether IFRS should apply to all governments, and whether government departments should be viewed as not publicly accountable and therefore permitted reduced disclosures in their published financial reports.

Keywords:

• Accountability
• delegated regulation
• governmental accounting
• IFRS for SMEs
• public accountability

Notes

* The previous framework noted the shortcomings for economic decision-making of financial statements that ‘largely portray the financial effects of past events’, but this information about past events was thought to support the accountability objective (IFRS Foundation, 2009, paras 12–14, see also Whittington, 2008).

* Australia's federal arrangements result in a three-tiered governmental structure comprising: the Australian Commonwealth government; state and territory governments; and local governments. The Commonwealth government and the six states (New South Wales, Victoria, Tasmania, Queensland, South Australia, and Western Australia) each have their own constitution, while the territories (Australian Capital Territory and Northern Territory) do not but, nevertheless, they have their own government. Whole of government financial reports published by the Commonwealth government include Commonwealth government departments and other Commonwealth entities but not state governments. Each state and territory publishes its own whole of government financial report.