The HM 'Treasure's Island': A Theoretical Analysis of Central Government Accounting Standards in UK

Accounting in Europe, 2016. DOI:10.1080/17449480.2016.1142096

14th Biennial CIGAR Conference, Birmingham University, September 2-3, 2013

XVIII IRSPM Conference on 'Public Sector Responses to Global Crisis,' International Research Society of Public Management (IRSPM), Prague, April 10-12, 2013

19 Pages Posted: 8 Jan 2013 Last revised: 16 Feb 2016

See all articles by Yuri Biondi

Yuri Biondi

French National Center for Scientific Research (CNRS)

Date Written: January 8, 2013

Abstract

Since the nineties, UK has been progressively adopting a Governmental accounting reform purporting to interpret and mimic accounting standards and practices from the private sector. Since 2009, the UK set of accounting standards applicable to the whole of central government entities is based upon the international accounting standards (IFRS) initially designed for commercial enterprises, the latter standards having extensively inspired the International Public Sector Accounting Standards (IPSAS). This article summarizes the main pattern of this English accounting reform and analyses some theoretical and practical concerns raised by its application of a fair value accounting model to the public administration. Among others, these concerns are illustrated by the case of public private partnerships (PPP, PFI) that have been held off balance sheet (eluding then accounting and budgetary controls) notwithstanding their material impact on English public deficit and debt. The paper drives then relevant considerations and implications for representation and control of public deficit and debt in UK and in general.

Keywords: public accountability, accruals and cash basis accounting, non-business accounting and economics, governmental accounting theory and standards, UK, nature and role of the non business entity, IPSAS, IFRS, PPP, PFI

JEL Classification: D73, E62, H61, M40

Suggested Citation

Biondi, Yuri, The HM 'Treasure's Island': A Theoretical Analysis of Central Government Accounting Standards in UK (January 8, 2013). Accounting in Europe, 2016. DOI:10.1080/17449480.2016.1142096; 14th Biennial CIGAR Conference, Birmingham University, September 2-3, 2013; XVIII IRSPM Conference on 'Public Sector Responses to Global Crisis,' International Research Society of Public Management (IRSPM), Prague, April 10-12, 2013. Available at SSRN: https://ssrn.com/abstract=2197656 or http://dx.doi.org/10.2139/ssrn.2197656

Yuri Biondi (Contact Author)

French National Center for Scientific Research (CNRS) ( email )

IRISSO - University Paris Dauphine PSL
Place Marechal Lattre Tassigny
75016 Paris
France

HOME PAGE: http://yuri.biondi.free.fr/

Register to save articles to
your library

Register

Paper statistics

Downloads
499
rank
54,412
Abstract Views
1,591
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information