As highlighted in National Council of Governmental Accounting (NCGA), the overall primary goals of accounting and financial reporting for government/ public sector unit is to provide financial information useful for making economic, political and social decisions, and demonstrating accountability and stewardship.

Required:

i. Explain why the public sector in general should use a different reporting framework from the private sector.

ii. Discuss on how the qualitative characteristics of financial report can enhance the quality

b)

of public sector reporting.

Differentiate the following:

i. Statement of Financial Position prepared by the public sector entity and private sector entity.

ii. The matching principles used in preparation of financial statement by the public sector entity and private sector entity.

c) Explain the type information needed by the following users and what kind of decision to be made by them:

Government auditors and oversight committee

Taxpayers and voters

d) Discuss on how financial reporting by public sector enhance can enhance public sector accountability.