Technical Note
ON THE [IR] RELEVANCE OF “PRIVATE SECTOR ACCOUNTING” FOR THE PUBLIC SECTOR
INDUSTRY :-
AREA :ACCOUNTING & CONTROL
ORGANIZATION :-
LENGTH :8
LUMS No :01-003-2014-2
PUBLICATION YEAR : 2014
ABSTRACT:
Accounting reforms lie at the centre 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 analysing 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).