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Finance & Accounting
Pages 5 (1255 words)
Public Sector Accounting Name Course Institution Date Executive Summary The following is a discussion of the accounting differences that emanate from public and private sectors. Evidently, business environment has two main categories of business entities: public and private sectors.
In respect to accounting there are differences in objectives of accounting process between public and private sectors. In addition, this paper identifies some of the critical differences in accounting between public and private sectors. Amongst such differences identified is measurement of performance through profits, as well as rate or return as in the case of private sector, which is lacking in the public sector. Other than the critical differences, this paper identifies accounting differences that emanate from the financial control aspect, whereas legislators or parliament financially controls public sectors, private sectors are financially controlled by the shareholders. Another important difference identified is the aspect of spending as public sectors unlike private sectors do not have a choice but to spend. Lastly, the paper identifies the auditing aspect of accounting, which differs in these two sectors in respect to its objectives. From the discussion, the paper concludes that the differences in accounting stem from varied management and control aspects of public and private sectors. Introduction Public sector refers to national, regional and local governments, in addition to various institutional units that are governed and controlled by governments of different nations or economies. ...
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