Index

Abstract

Citation (2023), "Index", Caruana, J., Bisogno, M. and Sicilia, M. (Ed.) Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence (Emerald Studies in Public Service Accounting and Accountability), Emerald Publishing Limited, Bingley, pp. 239-250. https://doi.org/10.1108/978-1-80117-161-820231017 Publisher: Emerald Publishing Limited Copyright © 2023 Josette Caruana, Marco Bisogno and Mariafrancesca Sicilia INDEX Accountability, 42, 222 purpose of NFP organization, 229–230 Accountable government, 42 Accounting for asset categories, 56–58 asset recognition and matching method adapted to public sector specificities, 51 asset under historical cost and current value accounting models, 49–51 derecognition of asset in public sector accounting, 51–52 developing consistent design for CF, 40–43 disadvantages of current value accounting for public sector assets, 54 for heritage goods, 222–223 historical cost accounting for assets adapted to public sector specificities, 46–54 illustrative examples of some asset categories, 54 matters of asset measurement in public sector accounting, 52–54 models, 43–48 policy, 29, 187, 221 for post-employment, 122 practice, 107–109 principle, 160 proposals for accounting for revenue, 117–118 proposals for accounting for transfer expenses, 121–122 in public sector, 153–156 for public sector assets, 49 standards set for NFP sector, 231–233 system, 5 visual guideline for applying our CF, 55–56 Accounting Directive 2013/34/EU, 67 Accounting Harmonization of Italian Subnational Governments (ARCONET), 157 Accounting Standards Board (ASB), 223, 226 Accrual accounting (see also Historical cost accounting), 152, 154, 162 move from cash to accrual accounting and opening balance sheet, 21–22 principle, 153, 161, 163 in public sector, 152 system, 10, 19, 21, 133, 157 Accrual conversion process, 33 Accrual methodology, 106 Accrual-based systems, 20 Acquisition costs, 204 Administrators, 42 Amortised cost, 145 Applied accounting principles, 153 Art galleries, 220, 228, 231 Asset Information Management System (AIMS), 31 Asset inventory, 24 Australia, 31 Malaysia, 25–26 South Africa, 27–29 Switzerland, 29–30 Asset Management Accountability Framework (AMAF), 30 Asset Premise Registration, 25 Asset register, 24 Australia, 31 Malaysia, 25–26 South Africa, 27–29 Switzerland, 29–30 Assets, 3, 6, 19, 48, 152, 159, 193, 195, 223 derecognition of asset in public sector accounting, 51–52 historical cost accounting for assets adapted to public sector specificities, 46–54 under historical cost and current value accounting models, 49–51 inclusion of COV as measurement basis for, 91–93 information framework, 31–34 information system, 22–24 management framework, 22, 27 matching method adapted to public sector specificities, 51 measurement in public sector accounting, matters of, 52–54 recognition method adapted to public sector specificities, 51 valuation, 20 Associate companies, 135–136 Associate entity, 135 Asymmetric loss function, 65 Asymmetric prudence, 64–65 assessment of IPSASB’s accounting standards with respect to, 74 from normative perspective, 65–68 prudence in Europe with Germany as exemplary framework including, 67–68 Auckland Museum, 188 Australia, 30–31 asset inventory and asset register stages, 31 background and policy development, 30–31 Australian Accounting Standards Board (AASB), 232 Balance sheet approach, 49 Banca Dati Amministrazioni Pubbliche (BDAP), 140 Basis for Conclusions (BC), 67 Benefit, 134 Borrowing costs, 123–124 Bottom-up approach, 41 Budgetary accounting systems, 21 Budgets statements, 42 Building block concepts, 19 Business accounting models, 43, 45 Canterbury Museum, 187–188 Cantonal Finance Ministers (CFM), 29 Capital expenditure, 118, 124–125 Capital goods, 220, 224 Capitalised investment costs (CIC), 201, 203 Case study method, 157 Cash, 21, 56 cash-based accounting systems, 21 cash-based process, 49 equivalents, 56 move from cash to accrual accounting and opening balance sheet, 21–22 transfer, 120 Cautious prudence in IASB CF, 66–67 from normative perspective, 65–68 Charities, 220, 228 Charities Statement of Recommended Practice (SORP), 232 Child benefit organisations, 228 Churches, 220 CL, 94 feedback obtained from CLs to ED 76 and ED 77 in relation to COV, 91–100 Classification of functions of government (COFOG), 121 Collective services, 120 delivering, 121 Commitment-based accounting system, 162 Comparability, 89 Conceptual framework (CF), 40, 63, 196 developing consistent design for, 40–43 visual guideline for applying our, 55–56 Concessionary loans, 117 Conditional conservatism, 66 Conservatism, 66 Consolidated financial statement in measurement of local government liabilities associate companies and joint ventures, 135–136 consistency in liability’s measurement between LG and private entities in consolidation area, 145–146 control under IPSAS 35 and line-by-line consolidation method, 133–135 empirical evidence of consolidation on measurement of liabilities, 140–144 financial and overall debts, 141, 143 international background, 133 Italian Accounting Standard on CFS, 136–139 LG Group and consolidation area, 142 sample and methodology, 139–140 Consolidated financial statements (CFS), 131, 140 Italian Accounting Standard on, 136–139 Consolidation methodologies, 144 Consultation Paper (CP), 105, 194, 220 Control approach, 133, 138 Control under IPSAS 35 and line-by-line consolidation method, 133–135 Controlled companies, 138 Controlled institutions, 137 Cost approach, 90, 99 Cost principle, 107 COVID-19 pandemic, 65 Cultural, heritage, scientific, and community collections (CHSCCs), 198 Cultural assets, 159, 175 Cultural heritage, 221 Current expenditure, 118 Current operational value (COV), 85–88, 97 alternatives to, 96 approach, 94 definition and guidance of, 93 definition and guidance of COV, 93–95 feedback obtained from CLs to ED 76 and ED 77 in relation to, 91–100 inclusion of COV as measurement basis for assets, 91–93 measurement techniques for, 90–91, 96–100 and QCs of IPSAS CF, 88–90 recommendations for future standard-setting process, 100–101 replacement cost, 96 SMC 5 in ED 77, 93 SMC 6 in ED 77, 94–95 suggestions from respondents, 95–96 fair value, 96 Current replacement cost, 97 Current value accounting for public sector assets, disadvantages of, 54 Current value accounting models, 50 asset under, 49–51 Current value measurement bases, 199 Current value model, 87, 145 Data, 157 sources, 27 Decision-making, 222 rights, 134 Department of Provincial and Local Government, 27 Department of Public Works, 27 Department of Treasury and Finance, 30 Departments, 136 Depreciated replacement cost (DRC), 93 Depreciation, 19, 52 Derecognition of asset in public sector accounting, 51–52 Deviations, 132 Direct flows, 203 Directive 2013/34/EU, 146 Documentary research, 109 Documentary sources, 168 Economic principles, 107–109 Economic theory of value, 10 and concept of ‘usability’, 199–201 Education, 228 Elderly care, 228 Empirical analysis, 31 Empirical evidence, 64 Employee benefits, 121n3, 122–123 Entity theory, 43 Equity method and elimination of accounting option for proportionate consolidation, 135–136 Equity/net assets, 12 Europe with Germany as exemplary framework including asymmetric prudence, prudence in, 67–68 European accounting systems, 65, 67 European Commission (EC), 72, 131 European Public Sector Accounting Standards (EPSASs), 64, 194 Conceptual Framework, 7 project of European Commission, 64 role of prudence principle in IPSASB CF and in EPSAS CF, 68–73 European standard, 109 European System of Accounts (ESA), 6, 106, 112–113, 116–117, 119–122, 124, 125 system, 124 terminology, 123 European Union (EU), 72 Accounting Directive, 72 Eurostat, 72–73 Evaluation, 154 in public sector, 153–156 Exchange transaction, 113 Exercise of prudence, 67 Expenditure, 118 borrowing costs, 123–124 capital expenditure, 124–125 collective and individual services, 120–121 employee benefits, 122–123 proposals for accounting for transfer expenses, 121–122 social benefits, 118–120 Exposure Draft (ED), 7, 145, 220 ED 70, 117 ED 71, 117 ED 76, 8, 85, 96 ED 77 ED 78, 194 feedback obtained from CLs to ED 76 and ED 77 in relation to COV, 91–100 SMC 5 in ED 77, 93 SMC 6 in ED 77, 94–95 External Reporting Board (XRB), 176n1 Fair values, 48, 87, 96, 113n2, 145 of assets, 116 principle, 107 Faithful representation, 89 Faro Convention on the Value of Cultural Heritage for Society, 200 Federal Accounting Standards Advisory Board (FASAB), 226 Financial accountability, 174 approach, 133, 138 rationale of, 139 Financial Accounting Standards Board (FASB), 232 Financial assets, 58 Financial benefits, 134 Financial debt ratios, 140 Financial liabilities, 145 Financial Management Act of Parliament (FMAP), 29 Financial performance, measurement of, 110–112 Financial policies, 134 Financial reporting, 4 Financial Reporting Standard (FRS), 226, 232 Financial statements, 42 measuring and reporting elements of, 12 Financial sustainability of LGs, 148 Finnish Government Accounting Board (FGAB), 49, 49n3 Fixed assets asset information framework, 31–34 Australia, 30–31 developing asset information system, 22–24 Malaysia, 24–26 move from cash to accrual accounting and opening balance sheet, 21–22 register, 20, 23, 27 research methodology, 24 South Africa, 26–29 Switzerland, 29–30 Full method, 141 General accounting principles, 153 General Purpose Financial Reports (GPFRs), 86 General purpose financial statements (GPFS), 40 German Accounting Framework, 7 German accounting principles, 64, 79 German Commercial Code (HGB), 68 German Generally Accepted Accounting Principles (German GAAP), 68 Germany as exemplary framework including asymmetric prudence, prudence in Europe with, 67–68 GFSM, 106 Government Asset Management Policy, 24 Government expenditures, 118 Government Finance Statistics (GFS), 105 Government Immovable Asset Management Act 19 (2007), 26 Government Revenue, 114 Governmental accounting harmonization, 156n2 Governmental entities, 220n1 Governmental/Public Accounts, 106 Governments, 220n1 Gross fixed capital formation, 124 Gross investment, 124n4 Harmonised Accounting Model (HAM), 29 HAM1, 29 HAM2, 29–30 Health care, 228 Heritage, 6, 198 accounting standard regulations in public sector, 226–227 focusing on, 12–13 in governments, 222–223 items as heritage assets, 195–198 project, 194 Heritage assets, 57–58, 86, 100, 152, 172, 175, 188, 194, 197, 226 context of analysis, 193–195 economic theory of value and concept of ‘usability’, 199–201 empirical application of proposed approach, 206–208 findings, 201 heritage items as, 195–198 interventionist research approach, 198–199 new proposal for assessing, 201–206 in public sector financial reporting, 193 reporting in NZ, 175–178 Heritage goods, 220 accounting standards set for NFP sector, 231–233 characteristics and definition, 221–222 recognition, valuation, and disclosure of, 222–225 research question, 225–226 Highest value principle, 68 Historical cost accounting accounting for public sector assets, 49–54 approach, 44 asset under, 49–51 for assets adapted to public sector specificities, 46 choosing between accounting models, 46–48 model, 40, 43–44, 50, 53 public sector-specific approach in line with GASB, 48–49 Historical cost approach, 46, 55, 87, 145 Holistic approach, 223–224 IFMIS, 33 Immovable Asset Management policy and guidance, 25 Immovable Asset Management Procedure, 25 Immovable assets, 25 Imparity principle, 68 Inclusion of COV as measurement basis for assets, 91 of indirect flows, 203 SMC 3 in ED 76, 92–93 Income approach, 91 arguments in favour of retaining income approach as measurement technique for COV, 97–98 Indirect flows, 203 Indirect returns in three cases, 215 Individual services, 120–121 Inductive approach, 21, 24 Infrastructure assets, 86, 100, 152 Institution concept, 137 Integrated Financial Management Information System (IFMIS), 24 Intellectual vulgarism, 13 International accounting frameworks, 66 International Accounting Standard Board (IASB), 5, 63–64, 146 cautious prudence in IASB CF, 66–67 Conceptual Framework, 7 International Accounting Standards (IAS), 46, 65, 131–132, 220 International Federation of Accountant (IFAC), 46 International Financial Reporting Standards (IFRS), 65, 131–132, 135 IFRS 9 Financial Instrument, 146 IFRS 13, 92 International Monetary Fund (IMF), 106 International Public Sector Accounting Standards (IPSAS), 47, 53, 63, 79, 86, 109, 112, 115–116, 118, 122, 131, 133, 145, 201 control under IPSAS 35 and line-by-line consolidation method, 133–135 framework, 107 IPSAS 1, 162 IPSAS 9, 122 IPSAS 17, 22, 176, 188–189 IPSAS 23, 122 IPSAS 33, 22 IPSAS 36, 135 IPSAS 39, 122 IPSAS 41, 146 IPSAS 42, 118–119 IPSAS CF, COV and QCs of, 88–90 International Public Sector Accounting Standards Board (IPSASB), 11, 24, 40, 46–47, 53, 64, 74, 86, 109, 117, 131, 134, 172, 175, 194, 220 assessment of IPSASB’s accounting standards with respect to asymmetric prudence, 74 Conceptual Framework, 5–7, 10, 86, 145 measurement project, 105–106 project, 112n1 role of prudence principle in IPSASB CF and in EPSAS CF, 68–73 Study 14, 22–23 International Public Sector Financial Accountability Index, 24 International Valuation Standards (IVS), 105 Interpretations, prudence and different, importance of, 65–66 Interventionist research approach, 198–199 Inventory data, 28 Italian ‘Heritage’ working group, 200, 206 Italian accounting reform framework, 159 Italian Accounting Standard (IAS), 136 on CFS, 136 considerations on Italian CFS, 138–139 IAS 16 regime, 187–188 Italian LG Group, 136–138 Italian accrual-based accounting principle, 163 Italian Applied Accounting Standard 4/3, 146 Italian Applied Accounting Standard 4/4, 136, 138–139, 146 Italian CFS, 138–139 Italian commercial law, 138 Italian context, 8 Italian law, 139 Italian legislature, 139 Italian LG Group, 136–138 Italian public sector, 194 Italian Standard Setter Board (Italian SSB), 194 Italian system, 153n1 Italian territorial governments, 156 Joint ventures, 135–136 Land database, 25 Landscape assets, 221 Liabilities, 3, 152, 159 consistency in liability’s measurement between LG and private entities included in consolidation area, 145–146 measurements, 132 Line-by-line consolidation method, control under IPSAS 35 and, 133–135 Line-by-line method, 135, 140–141 Liquidation method, 52 Local governments (LGs), 9, 131 financial debts, 143 group, 136 and private entities included in consolidation area, consistency in liability’s measurement, 145–146 websites, 140 Local museums, 178 Lower of cost principle, 68 Malaysia asset inventory and asset register stages, 25–26 background and policy development, 24–25 fixed assets, 24 Malaysia Public Works Department, 25 Manual on Government Deficit and Debts (MGDD), 109 Māori heritage item, 177 Market approach, 90, 100 measurement technique, 90 Market output, 114 Market principle, 68 Market value, 145 principles, 111 Matching method, 51 Measure, 155 Measurement, 6 accounting practice vs. economic principles, 107–109 approach, 48 arguments in favour of retaining income approach as, 97–98 of assets, 86 bases, 87 concept, 156 empirical evidence of consolidation on measurement of liabilities, 140–144 expenditure, 118–125 of financial performance, 110–112 of heritage assets, 173 implications of book chapters for public sector accounting, 10–13 of income and expenditure, 106 literature review, 106–107 measurement of financial performance, 110–112 measurement-related EDs, 172 methodology, 109–110 models, 87 of PPE, 175 in public sector, 87, 153–156 revenue, 112–118 SMC 8 in ED 77, 97 suggestions on way forward for measurement techniques, 99–100 techniques for COV, 90–91, 96 theoretical frameworks and methodological approaches, 6–10 Military assets, 57 Ministry of Economy and Finance (MoF), 157, 194 Monetary-based items, 152 Moveable Asset Management System, 25 Moveable assets, 25 Multi-dimensional value, 194 Municipal Finance Management Act, 26 Museums, 187, 220, 228, 231 National Accounts, 8, 12, 106–107, 110–111, 116–117, 120–121, 124 rules, 111 terminology, 119 Natural assets, 57–58 Net assets/equity line, 9 Net direct returns in three cases, 214 Net lending/borrowing, 110 Net present value techniques, 201 Net saving, 112 Neutrality, 45 New Zealand (NZ), 171 Auditor-General, 174 heritage assets reporting in, 175–178 history of IFRS, 172, 177 IAS 16, 187–188 IPSAS 17, 188–189 literature review and theoretical foundations, 173–175 methodology and data collection, 178 museums, 173, 178 OAG, 187 reporting of heritage assets in financial statements of NZ Museums, 179–186 standard setter, 177 Treasury, 175 New Zealand Accounting Standards Board (NZASB), 176, 176n1, 177 New Zealand Auditing & Assurance Standards Board (NZAuASB), 176n1 New Zealand Society of Accountants (NZSA), 195 NFP organisations, 228–229 sector, 227–228 Non-commercial transactions, 53 Non-controlled companies, 138 Non-controlled entities, 141 Non-controlled institutions, 137 Non-exchange transactions, 113 Non-financial assets, 55, 86, 100 Non-financial benefits, 134 Non-market output, 114 Non-Moveable Asset Management System, 25 Non-reciprocal transfers, 112 Office of the Auditor-General (OAG), 174 Opening balance sheet, move from cash to accrual accounting and, 21–22 Operating policies, 134 Operational value, 6 Organisations transactions, 152 Organismo Italiano di Contabilità (OIC), 140 Organization for Economic Co-operation and Development (OECD), 223 Otago Museum, 187, 189 Other comprehensive income (OCI), 68, 73 Output, 114 Paramount principles of protective function, 68 Perceived utility, 201 Politicians, 42 Present value of future net returns (PVNR), 201, 203 of heritage assets, 217 Presentational prudence approach, 79 Principle of prudence in government accounting assessment of IPSASB’s accounting standards with respect to asymmetric prudence, 74 cautious and asymmetric prudence from normative perspective, 65 cautious prudence in IASB CF, 66–67 findings, 74–79 importance of prudence and different interpretations, 65–66 prudence in Europe with Germany as exemplary framework including asymmetric prudence, 67–68 prudence within IPSASB CF, 68–72 role of prudence principle in IPSASB CF and in EPSAS CF, 68 Private entities, 132 Private entities in consolidation area, consistency in liability’s measurement between LG and, 145–146 Private NFP organisations, 220–221 Productive process, 45 Professional accountants, 152 Project Management System, 25 Property, plant and equipment (PPE), 73, 107, 172, 175, 194 accounting standard for NZ public sector, 176 valuation, 26 Proportionate consolidation, equity method and elimination of accounting option for, 135–136 Proportionate method, 141 Province of Brescia, 139 Prudence, 66 concept, 63, 116 in Europe with Germany as exemplary framework including asymmetric prudence, 67–68 importance of prudence and different interpretations, 65–66 within IPSASB CF, 68–72 principle role in IPSASB CF and in EPSAS CF, 68–73 Prudent measurement, 68 Public accountability, 174 Public Accounts, 12, 106–107, 110–111, 115, 124 Public administrations equity (net assets) measurement, evaluation, and accounting in public sector, 153–156 method, 157–158 research design, 156 research site, 156–157 results, 158–162 Public assets, 25 Public Benefit Entity Standards (PBE Standards), 226 Public context project, 132 Public domain assets, 159 Public entities, 132 Public Finance Management Act 1 (1999), 26 Public finances, 29 Public heritage facilities, 222 Public management of fixed assets, 20 Public resource management system, 198 Public sector, 54, 133, 228–229 asset recognition and matching method adapted to public sector specificities, 51 historical cost accounting for assets adapted to public sector specificities, 46–54 measurement, evaluation, and accounting in, 153–156 organisations, 4 public sector-specific approach in line with GASB, 48–49 public sector-specific matching mechanism, 46 Public sector accounting (see also Accrual accounting), 45, 64, 152, 172 derecognition of asset in, 51–52 focusing on heritage, 12–13 frameworks and methodologies, 10–11 implications, 10 matters of asset measurement in, 52–54 measuring and reporting elements of financial statements, 12 Public sector assets, 56, 194 accounting for, 49–54 disadvantages of current value accounting for, 54 Public sector entities (PSE), 40, 58, 220 financial statements, 42 Public Sector Financial Reporting, 6 Public value, 4, 230 Qualitative characteristics (QCs), 86 COV and QCs of IPSAS CF, 88–90 Qualitative methodology approach, 109 Qualitative research, 109 Realisation principle, 68 Regional museums, 178 Relevance, 5, 11 Reliability, 5, 11 Representative evaluation, 156 Research design, 198 Research question (RQ), 132 Reserve matching mechanism, 51 Resources, 116, 196 Revenues, 51, 112 proposals for accounting for revenue, 117–118 taxes, 115–116 transfers, 116–117 Schemes, 123 Sector-neutral reporting, 226 Separate financial statements (SFS), 140 Service delivery objectives, 96 Social benefits, 118–120 Social insurance in National Accounts, 123 Social risks, 118 Social services, 228 Social transfers, 120 South Africa, 26–29 asset inventory and asset register stages, 27–29 background and policy development, 26–27 Specific Asset Registration, 25 Specific matter for comment (SMC), 91 SMC 5 in ED 77, 93 SMC 6 in ED 77, 94–95 Standard-setting process, recommendations for future, 100–101 Statement of Changes in Net Assets/Equity, 152 Static accounting, 45 Statistical guidelines, 114 Stipulations, 116 Straight-line allocation method, 51 Swiss central government, 29 Switzerland, 29 asset inventory and asset register stages, 29–30 background and policy development, 29 Tangible assets, 25, 194 Taxable amount for direct taxes, 203 Taxes, 115–116 Temporal attribution of cash flows, 116 Theoretical analysis, 40, 48, 55 Third sector, 227 Timeliness, 89 Total expenditure, 118 Total net returns in three cases, 216 Tout court application, 152 Transactions, 52 Transfer expenses, proposals for accounting for, 121–122 Transferability of accounting policies for governmental heritage to private NFP organisations, 227 accountability purpose of NFP organization, 229–230 NFP sector, 227–228 previous heritage accounting research in private NFP organisations, 230–231 public sector and NFP organisations, 228–229 Transfers, 116–117 Unavailable reserves, 158 unsellable, 159 Unconditional conservatism, 66 Understandability, 89 Unified accounting system, 132 United Nation’s System of National Accounts (SNA), 106, 107 Unrequited transactions, 113 US Government Accounting Standards Board (GASB), 46, 48 public sector-specific approach in line with, 48–49 Usability, 201 of assets, 10 economic theory of value and concept of, 199–201 Valuation Guidance for Cultural and Heritage Assets, 175 Valuation technique, 92, 224–225 Value added concept, 114 economic theory of, 199–201 in use concept, 194 Value added tax (VAT), 204 Variable benefits, 134 Verifiability, 90 Victorian Digital Asset Strategy (VDAS), 31 Whanganui Regional Museum, 187, 189 Book Chapters Prelims Introduction Chapter 1: Exploring the Measurement Dilemma in Public Sector Financial Reporting Frameworks and Methodologies Chapter 2: Pathways for Implementing an Asset Information Framework for the Valuation and Management of Fixed Assets Chapter 3: Accounting for Public Sector Assets: Comparing Historical Cost and Current Value Models Chapter 4: The Principle of Prudence in Government Accounting Chapter 5: The Applicability of the Current Operational Value for the Measurement of Assets in the Public Sector Measuring and Reporting the Elements in Financial Statements Chapter 6: The Measurement of Income and Expenditure: Comparing Public Accounts and National Accounts Chapter 7: The Relevance of the Consolidated Financial Statement in the Measurement of Local Government Liabilities Chapter 8: Public Administrations’ Equity (Net Assets): Where Problems of Evaluation and Measurement Walk Together Focusing on Heritage Chapter 9: Measurement and Reporting of Heritage Assets – Insights from Practice in New Zealand Chapter 10: Measuring Heritage Assets in Public Sector Financial Reporting: Dream or Reality? Chapter 11: Towards Convergence of Heritage Accounting Perspectives: The Public Sector and the Private Not-for-Profit Sector Index