Premium
How to Profit From Defence: A Study in the Misapplication of Business Accounting to the Public Sector in Australia
Author(s) -
Barton Allan D.
Publication year - 2004
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/j.0267-4424.2004.00388.x
Subject(s) - accounting , appropriation , business , public sector , dividend , profit (economics) , government (linguistics) , position (finance) , economics , not for profit , finance , economy , linguistics , philosophy , microeconomics
The financial statements of the Australian Department of Defence portray it as a highly profitable business which sells defence services to the Government, earns a large profit, pays a substantial dividend and is largely self‐funding. It is argued that the statements seriously misrepresent the financial performance and position of the Department. It is funded from a budget appropriation to provide defence services to the nation, but it is required to report as if it were a commercial business under New Public Management reforms adopted by the Government. But Government accounting systems must be adapted to their unique operating environments if their financial statements are to faithfully represent their financial results.