1. State the objectives of public sector accounting contained in the American Accounting
Association!
2. Explain the history of the development of public sector accounting in Indonesia!
ANSWER!!
1. The American Accounting Association (1970) in Glynn (1993) states that the purpose of
accounting in public sector organizations is to:
• Provide the necessary information to manage properly, efficiently and economically
on an operation and the allocation of resources entrusted to the organization. This
objective is related to management control (Management control)
• Providing information that enables managers to report on the implementation of their
responsibilities for managing programs appropriately and effectively and on the use
of resources under their authority and enabling government officials to report publicly
on the results of government operations and the use of public funds. This objective is
related to accountability.
2. History of the development of public sector accounting in Indonesia:
• 1952 → the term public sector was introduced, often associated with the management
of macroeconomics.
• 1970 → criticism of the public sector is not efficient and does not support
development.
• 1980 → public sector reform in industrialized countries. Cash basis to accrual basis.
History of public sector organizations:
- 18th century → fundamental changes
a. Individual initiative is more appreciated and given the widest possible
opportunities
b. Industrial revolution
c. industrial revolution
d. c. The development of financial and management accounting in companies is
more triggered by developments in public sector accounting practices
- 19-20 centuries
a. Began to equate public sector accounting as the process of recording taxes
collected by the government
b. Commencement of the practice of auditing government funds Public officials as
the person in charge of tax collection and spending
c. Commencement of the practice of auditing government funds
d. However, the government official who audits also has other administrative
responsibilities.
Association!
2. Explain the history of the development of public sector accounting in Indonesia!
ANSWER!!
1. The American Accounting Association (1970) in Glynn (1993) states that the purpose of
accounting in public sector organizations is to:
• Provide the necessary information to manage properly, efficiently and economically
on an operation and the allocation of resources entrusted to the organization. This
objective is related to management control (Management control)
• Providing information that enables managers to report on the implementation of their
responsibilities for managing programs appropriately and effectively and on the use
of resources under their authority and enabling government officials to report publicly
on the results of government operations and the use of public funds. This objective is
related to accountability.
2. History of the development of public sector accounting in Indonesia:
• 1952 → the term public sector was introduced, often associated with the management
of macroeconomics.
• 1970 → criticism of the public sector is not efficient and does not support
development.
• 1980 → public sector reform in industrialized countries. Cash basis to accrual basis.
History of public sector organizations:
- 18th century → fundamental changes
a. Individual initiative is more appreciated and given the widest possible
opportunities
b. Industrial revolution
c. industrial revolution
d. c. The development of financial and management accounting in companies is
more triggered by developments in public sector accounting practices
- 19-20 centuries
a. Began to equate public sector accounting as the process of recording taxes
collected by the government
b. Commencement of the practice of auditing government funds Public officials as
the person in charge of tax collection and spending
c. Commencement of the practice of auditing government funds
d. However, the government official who audits also has other administrative
responsibilities.
