Authors : Marco Sorrentino
Abstract: Within the new public management, a fundamental role is played by changes in accounting measurement and recognition systems (in this case, the literature speaks specifically of new public financial management). It has been substantially characterized by a gradual shift from cash to accrual accounting. In light of it, this study aims to analyse some of the most significant conceptual and practical implications associated with the use of accrual accounting in the public sector by looking closely at one full-accrual standard that seem to lend themselves better and more directly than others to show the systems innovative reach: IPSAS 12-inventories. The switch-over broadens the scope of the accounting system, thereby leading to the recognition and consequent valuation of all the resources of any public-sector entity in its financial statements. As is often the case, though, greater utility implies greater complexity and innumerable elements of uncertainty are evidently still present.
Marco Sorrentino , 2017. Towards a Full Accrual Accounting in the Public Sector: A Critical Analysis of IPSAS 12. International Business Management, 11: 2196-2202.