Problem
Public sector financial information is used by a wide range of stakeholders. The financial information should be transparent and allow an effective and accountable use of public resources. The implementation of accrual accounting will provide a better picture of the financial position of the public sector as a whole.
Task
1. Explain briefly three objectives of financial reporting in public sector.
2. Discuss four limitations of modified cash basis
3. Discuss the significant impact of changing from cash to accrual basis to the financial reporting of public sector.