Comparing Public and Private Sector Accounting

INTRODUCTION TO PUBLIC heavens ACCOUNTING Public Sector account statement is related to government and different from mysterious welkin write up system. Accounting and financial describe for earthly concern vault of heaven argon establish on distinctive concepts, standards, and procedure knowing to accommodate their environment. This also based on the postulates of their accounting information users. Derbyshire (1987) defined a world heavens as a device for regulating human race activities so that men and women can bear together in reasonable harmony. The public sector is providing basic government function whether federal, state or local/municipal.It encompasses world-wide and critical serve such as a national defense, healthc ar, public roads and primary education. The public sector is relegate of economic and administrative life that deals with the saving of goods and services by and for the government. A stakeholder is a party who has an interest in the ner ves activities, project or program. This is including whose affects, or can be affected by, the geological formations actions and decisions. More institutional stakeholders are lying under the public sector compared to private sector.For examples the parliament, the Auditor General and the Cabinet. They are mainly from individuals who are directly or indirectly involved in the fraternitys action such as the shareholders and suppliers. The public sector operates within a framework of public authorization and control. adept common feature of all public sectors bodies is Parliament will derived the specific exponent ultimately. However, the formal and informal networks such as the ministers, local councils, and pressure groups impacted on the way of how the public organizations operate. The public sector also has a plurality of objectives.Political, economic, social, regulatory, skilful and performance of services often extend on the basis of perceived need rather than in respons e to stringent market-related demand. For example, in Malaysia, plurality of objectives of the government is intelligibly observed. The observation is through the setting up of different ministries with a variety of portfolios. In addition, public sector organization has no direct financial interest or benefits to the contributors of resources. Any direct or proportionable share of those organizations goods and services will not been get windd by the contributors of resources.For instance, an individual who is a tax payer in Malaysia will not receive direct benefits from the Inland Revenue Board. Instead, they know indirect benefits from the provision of education at all levels, provision of health services, never-ending clean water supply and every other benefits. The public sector is alter accounting principles and practices. In general, fund accounting where separate accounts are maintained for to each one fund so that limitations and restriction primed(p) on use of the resources allocated can be properly monitored and accountability is ensured.The private sector is chiefly using the entity accounting which a term used to identify the organization. The accounting service is to be provided and whose accounting or other information is to be analyzed, roll up and reported. Lastly, the public sector is more to policy-making rather than financial control which bear on about delivering social responsibilities to the public at large. Hence, the priority on resources allocation is generally governed by the priority set by the government. The national agenda sets the priority, not by any investment appraisal and advantageousness criteria.