Public Sector accounting is budget driven because most of public entities do not operate on commercial basis and as such do not earn income on their own. They are financed from the central pool of government revenue. Local authorities for instance obtain the largest proportion of their funds in the form of grants from the central government. Besides, the local authorities, there are nationalized industries which operate along similar lines like the private sector but regulated by the government and for that matter are limited in what they can do. Accounting information system in the public sector is provided for a host of interested parties with diverse needs and conflicting interest including taxpayers, donor agencies and politicians, etc.

Required:

Describe the characteristics of Public Sector Organisations and clearly show the major divisions of the public sector. [28 marks]

Identify and explain four main sources of financing the annual budget statement presented to the parliament of Ghana. [20 marks]

Examine the objectives of public sector accounting and financial reporting. [12 marks]