In order to demonstrate the differences an organization from each sector has been taken. The chosen public sector organization is The Royal Mail Holdings Plc and the publicly listed company is Aviva Plc. Royal Mail is a 100% UK Government owned organization involved with the postal services throughout UK, Ireland and Europe (Royal Mail Group Ltd, 2012). Aviva is a UK-based largest global insurance company and world’s sixth largest (Aviva, 2012). The third section demonstrates the effect of the objectives of public sector accounting and the rules and regulations governing public sector organizations in the form of differences and similarities in the format, style and accounting policies in the annual reports of Royal Mail and Aviva. The fourth section deals with the role of auditor in both the organizations. Overall the four sections in the project analyze if the differences between the two sectors’ accounting practices are prominent or if there is any reduction in their differing frameworks. Accounting Needs & Objectives The public sector encompasses all the organizations that are not owned or operated by private organizations. The organizations’ control lies in the hands of the Government, either national or local. Public sector in UK is diverse and includes nationalized industries, Government agencies and public service organizations. Nationalized industries are commercial organizations that sell goods to market but are mainly governed by government-appointed boards and ministers rather than markets or shareholders. The surplus generated from their operations is expected to enable replacement investment. The government agencies include welfare services and taxation body. These agencies are required to deliver satisfactory services to the claimants and taxpayers by using the resources at their disposal. The public service organization provides health, policing and defence services on behalf of central or local government. These services are financed from the tax revenues and therefore not charged from the public directly. Unlike the private sector with a clear objective of profit-making, the public sector has a complex mix of objectives and demands. It is primarily concerned with serving the general public. The importance of public sector accounting and disclosures, and their differences from the private sector accounting is due to the following reasons: Lack of making Profits: The ultimate objective of a private organization if profit making and/or creating wealth for its shareholders. However a public sector organization’s objective is not considered profit making. Sometimes this suggests the possibility of inefficient use of resources or absence of commitment to provide good service to the clients due to no profit-making. Lack of Competition: A private sector organization usually operates in an industry with direct competitors and subject to regulations by oversight regulatory bodies. Contrary to this the public sector organizations are not subject to disciplines of the markets and lack the comparability with other firms. Public Interest: There is a corporate governance framework and audit rules for private organizat
Public Sector Accounting Table of Contents Table of Contents 2 Introduction 3 Accounting Needs & Objectives 4 Accounting Laws, Regulations & Guidelines 5 Public Sector Performance Assessment 7 Role of Auditor in Public/Private Organizations 8 Conclusion 9 References 11 Bibliography 12 Introduction This project includes a critical analysis of public sector accounting in UK as to how the public sector organizations demonstrate accountability…
Earmarked taxes can therefore be identified as certain amount of taxes collected by the government which are reserved for undertaking certain activities leading towards the development of the country. In other words, earmarked tax is defined as the practice of allocating revenue collected by the government in the form of various taxes for undertaking specific activities related to a certain area.
Accounting is not only a way to portray the financial performance of a company, but it entails guiding any decision making involving every single aspect in the company. There are two main types of organisations in the market today. These are the public and private sectors.
Differences in operational rules and guidelines and work environments vary among these sectors and may influence an accountant’s preference to work in one sector than another. I, in this paper, explore the difference between the scope of an accountant’s work in the public sector and in the private sector and outline personal goal and interest in the accounting profession.
As there is a need for proper understanding between public sector bodies and their auditors, including the various roles of public sector bodies and auditors, there should be cooperation between them in order to facilitate efficient arrangements for auditing.
This observation provides the hypothesis for the research paper that measuring the performance of the public sector is more difficult compared with measuring the performance of the private sector.
The discussion has five parts. First, organisational types and the importance of performance measurement are linked together and discussed.
Financial accounting records are mainly therefore for external purposes whereas managerial accounting records are maintained for the internal purpose- the controlling of costs, budgets, schedules during the
This is because the public sector exists to help the members of the society and carry out governments policies. The idea is to improve the welfare of people and not to benefit from them. This is in contrast with the
d long term loans, is a basis through which investors judge the reputation of a company to invest in, and provides the strategic goals and dimensions of the company in line with its vision, mission and objectives. Accounting is not only a way to portray the financial
Fund accounting used by Yorba Linda improved presentation visibility of financial information as it segregates funds into their component units which increases presentation visibility and allow user to know the position of their investments at any point in time.
The state liability at the end of Financial Year will be 536 trillion of yen, the corresponding of 12 decades of overall account tariff proceeds; and that local as well as federal Japan aggregate long-standing
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