Public Sector Accounting

PUBLIC SECTOR ACCOUNTING

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LECTURE 1 INTRODUCTION

LEARNING OUTCOMES

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At the end of this course, students should be able to:

1.

Describe the components of public sector, the statutory requirements related to financial provisions and the relationship between federal and state governments. Explain major issues in the management accounting and control, budgeting, performance measurement, financial accounting and reporting and auditing of the public sector. Elaborate the initiatives of Accountant General’s Department (AGD) and International Federation of Accountants (IFAC) in relation to public sector accounting. Differentiate between public sector accounting and private sector accounting. Assess the importance of accountability and ethics in public sector organisations.

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3.

4. 5.

ASSESSMENT

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Continuous Assessment 40%

  

Tutorial* Mid semester test Group assignment

5% 15% 20%

Final examination 60% * Some of the tutorial assignments will be assessed based on participation during tutorial sessions.

TOPICS COVERED

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 Week 1: Introduction  Week 2: Malaysian governmental system  Week 3-4: Management accounting and budgeting

 Week 5: Performance measurement

 Week 6-10: Financial accounting and reporting  Week 11: Auditing

 Week 12: Public sector development

 Week 13: Local government etc.

Introduction

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 What is public sector  Environment and characteristics  Public sector accounting concepts

What is Public Sector?

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 

Literally - “state-controlled part of an economy, industry, etc.” (Oxford Dictionary, 1992, p. 725). Public sector can be looked at from three criteria: 1. Structure - normally refers to the administrative structures as established by the constitution or statutes of a country, headed by elected or appointed officials. 2. Ownership - controlled by the government, either through legislation or share holding 3. Activities and how those activities are financed i.e....