R. G. Walker

Issues in the Preparation of Public Sector Consolidated Statements

Issues that have arisen in the preparation of public sector consolidated statements are identified by reference to audit qualifications, by noting items recognized (or not recognized) in different reports, and by consideration of items or treatments that are peculiar to the public sector. Australian governments have agreed to align government financial reports with local interpretations of Government Finance Statistics, and this has secured some standardization of reporting. Suggestions are offered as to how reporting issues might be resolved, by reference to decisions routinely made by stakeholders. Proposals relate to asset and liability identification, the disclosure of details of inter-sector transfers, the disaggregation of reports on expenditure in terms of both line items and policy areas of government; and that these reports be accompanied by performance indicators relating to policy areas.

Reporting on Infrastructure in Australia: Practices and Management Preferences

A major responsibility of governments worldwide is to maintain and upgrade state-owned physical infrastructure. Yet contemporary accounting reports fail to recognize commitments arising from deferred maintenance, and the usefulness of descriptions of book values and depreciation charges on those assets is questionable. A range of options for reporting more fully on infrastructure assets has been proposed but little evidence has been presented as to how stakeholders view alternative forms of information obtained in terms of those options. This study presents evidence obtained from telephone and mail surveys about the attitudes of engineers, accounting and finance professionals and other senior managers of Australian public sector agencies towards current infrastructure reporting practices. Most of the surveyed agencies actively managed their infrastructure assets and routinely compiled information about asset condition. The majority of respondents indicated that maintaining the functionality of physical infrastructure was critical to the success of their organization. Against this background, respondents were asked to indicate which among five nominated reporting options was likely to better aid judgments about a series of issues concerning the status and management of infrastructure, and finally what reporting option had the most overall usefulness to decision making. The judgments identified were likely to be common to both managers and external stakeholders. The findings were that respondents, irrespective of their organizational affiliation or professional background, overwhelmingly preferred information about the physical condition of assets, combined with estimates of the current cost of bringing those assets to a satisfactory condition (with some respondents indicating a preference for the data to be accompanied by information about written-down replacement costs). Historical cost accounting received little support from respondents.