Intergenerational equity in municipal accounting: New Zealand in the early 20th century

Abstract

This study addresses issues relating to accounting for fixed assets by municipalities - issues not previously discussed in the accounting history literature. The paper reveals the significance of the principle of intergenerational equity and the influence of user groups in the development of accounting policy in local government. It suggests that both preparers and users of accounting information were influential in a debate on government accounting policy which took place in Wellington, New Zealand, during the early twentieth century. It is shown that the principle of intergenerational equity was accorded high importance in the debate but was subject to challenge. The finding suggest that the users of accounting information engaged in the debates on government accounting as an expression of civic duty, a notion consistent with the ethical imperative of ensuring intergenerational equity.