Some accounting professionals argue that the financial reporting needs of public sector entities are not significantly...

 

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Some accounting professionals argue that the financial reporting needs of public sector entities are not significantly different from financial reporting objectives in the private sector. Given this, they contend that the development of a separate set of accounting standards for the public sector is needless and a complete repetition of existing accounting standards used by publicly listed entities. For instance, they opine that the International Public Sector Accounting Standards (IPSAS) is a duplication of the International Financial Reporting Standards (IFRS) With reference to the following accounting issues; property, plant and equipment, borrowing cost, valuation of inventory, related party disclosure, and intangible assets, you are required to: a) state the applicable IPSAS and the associated IFRS for a similar issue in the private sector b) highlight the main similarities and differences in treatment between the stated IPSAS and the underlying IFRS/IAS. als) Some accounting professionals argue that the financial reporting needs of public sector entities are not significantly different from financial reporting objectives in the private sector. Given this, they contend that the development of a separate set of accounting standards for the public sector is needless and a complete repetition of existing accounting standards used by publicly listed entities. For instance, they opine that the International Public Sector Accounting Standards (IPSAS) is a duplication of the International Financial Reporting Standards (IFRS) With reference to the following accounting issues; property, plant and equipment, borrowing cost, valuation of inventory, related party disclosure, and intangible assets, you are required to: a) state the applicable IPSAS and the associated IFRS for a similar issue in the private sector b) highlight the main similarities and differences in treatment between the stated IPSAS and the underlying IFRS/IAS. als)

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a Below are the applicable IPSAS and their corresponding IFRSIAS for the mentioned accounting issues along with the main similarities and differences ... View the full answer