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2 May. 2018

New AASB Research Report on public sector entities

The financial reporting framework that governs public sector entities has not been reviewed for many years. The public sector needs to be transparent and accountable to parliament for its financial outcomes, with the primacy of the budget and the provision of information for economic management, both nationally and internationally.

Public sector entities however, complain of financial reporting complexity, inconsistent requirements and that the reports do not focus on the needs of stakeholders. The cost of preparation (including valuation of non-financial assets) and audit of these financial statements is estimated to be more than $1 billion annually.

To understand the basis for public sector entities’ criticism, AASB Research Report No 6: Financial Reporting Requirements Applicable to Australia Public Sector Entities benchmarks the financial reporting requirements applicable to public sector entities in Australia and seven comparable international jurisdictions, and presents findings to contribute to discussions about how to overcome these criticisms.

This Research Report is part of a larger AASB and the Auditing and Assurance Standards Board project to assist in reviewing the financial reporting framework in Australia for all sectors.