Professional Documents
Culture Documents
Mario Abela
Uresha Walpitagama
Financial reporting and its
impact on decision-making
Mario Abela
Leader – Research and Development
Central Govt
Public
Local Govt
Corporations
Australia: WGR
Local Gov Local Gov Local Gov Local Gov Local Gov Local Gov Local Gov
New Zealand: WGA
Central Govt
Local Govt
Canada
Federal
Local
Sweden
Central Govt
Local Govt
Defining use
• International variation
• Dependent on constitution
• Global Labelling
• Push for unifying “Conceptual Framework”
• Local Solutions / Adaptations
Key reform drivers
• Rhetoric
– Greater decision making / macro-econ links
– Improved accountability
• Strength of accounting professions
• Politics: Transparency deficit
Competition
• Systems
– National Accounts/Statistics
– GAAP/Accounting
• Global leadership
• Professions/Commercial vs. Public Sector
The impact of accounting for Public Private
Partnerships
30
Accounting for PPPs
• IFRIC 12 Service Concession Arrangements 2006
• IPSASB issued IPSAS 32 Service Concession
Arrangements – Grantor 2011
32
Issues arising from accounting
treatment (2)
• Many European governments are in the process of
adopting IPSAS, but the net debt problem still remains:
33
Issues arising from contracts (1)
• Poor transparency/restricted access to contract detail
34
Issues arising from contracts (2)
• There are opportunities for further arbitrage around
contracts to avoid meeting the IFRIC 12 definition
• Furthermore, contract negotiation is not a neutral activity:
– Many contracts are subject to political will
Decision makers:
Government officers, politicians (government or
opposition), institutions and the general public
Need of financial reporting for the government sector:
Why?