Details

Technical Note

Educator Copy

On The (IR) Relevance of Private Sector Accounting For The Public Sector

Muhammad Junaid Ashraf


INDUSTRY : Public Sector

AREA : Accounting & Control

ORGANIZATION : Pakistan

LENGTH : 8

LUMS No : 01-003-2014-2

PUBLICATION YEAR : 2014

DESCRIPTION

KEYWORDS:

Private Sector Accounting,Public Sector,Financial Management Reforms,Development of Public Sector,International Standards,Accountability,Capitalism


DESCRIPTION:

Accounting reforms lie at the center of recent public sector financial management reforms in both developed and developing countries. In these reforms, private sector accounting has been considered an ideal towards which public sector accounting should also gradually move. Development of public sector international accounting standards on the lines of private sector accounting standards is a move in this direction. This note is an attempt to critically evaluate this trend by analyzing the historical origins and functions of private sector accounting. The note then assesses the relevance of private sector accounting as an accountability mechanism for the State (and its functionaries).


LEARNING OBJECTIVES:

1) Basic assumptions of private accounting and its relevance for capitalistic modes of production. 2) The nature of the State and how it differs from corporations. 3) Private sector accounting and its fit with public sector accountability.


SUBJECTS COVERED:

Accounting & Control