Sunday, October 19, 2003

Government shift to accrual accounting criticised as rightist ideology: "Over recent years governments in Australia and New Zealand have led the Western world in the switch from undeniably problematic cash-based accounting systems to the sorts of accrual accounting systems used by business. Along with the application of business principles and practices, these reforms were badly needed and have played a part in making government more efficient and effective.

"But a growing band of critics is now questioning the way the reforms were implemented, claiming ideology has been allowed to get in the way of good practice. As a result the application of business accrual accounting to the public sector has fostered a controversial agenda designed to shrink the role of government, force governments to act more like businesses and allow the operation of free markets unfettered by government interference."

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