Commentary: IFRS and the Domestic Standard Setter - The Challenge of the Public Sector

In his interesting reflections on accounting standard setting, Kevin Stevenson raises the issue again - applying business accounting standards to the public sector. This matter has been the subject of debate for the past decade. I argue that because the nature and roles of governments differ fundamentally from those of business, governments require a set of accounting standards tailored to suit their special needs. Their accounting systems must report the appropriate information required for the efficient management of the nation's financial affairs.