AAS27 and accountability with emphasis on depreciation as the critical test

Molland, A 2006, AAS27 and accountability with emphasis on depreciation as the critical test, Doctor of Philosophy (PhD), Accounting and Law, RMIT University.


Document type: Thesis
Collection: Theses

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Title AAS27 and accountability with emphasis on depreciation as the critical test
Author(s) Molland, A
Year 2006
Abstract The purpose of this study is to investigate how senior accounting staff in Victorian local councils are recording and reporting infrastructure assets (IAs) with their relevant depreciation in General Purpose Financial Reports (GPFRs). Infrastructure assets are long-lived assets such as roads, drains and bridges. Historically, the purpose of public sector accounting in Western countries has been to demonstrate that funds have been raised and expended strictly within the authority of the annual budget. This short-term charge/discharge objective, involving the use of a cash-based system of accounting, has effectively prevented the provision of information for long-term decision making and the assessment of those decisions. The major disadvantage for management purposes is the loss of information relating to the longterm benefits of expenditures with one of the major issues being the failure to record IAs and their relevant depreciation. The introduction of Australian Accounting Standard No. 27 Financial Reporting by Local Governments (AAS27), which applies to all Australian local authorities and the Statements of Accounting Concepts (SACs) require IAs to be reported in the Statement of Financial Position and depreciation to be charged in the Statement of Financial Performance in order to reflect the loss of service potential in the operating period concerned. It is anticipated that the study will report the implications for the accountability of the implementation of IA accounting and the utility and relevance of IA information and depreciation for decision-making by both internal and external users. Conclusions on the consequences of current practices and recommendations for change will be developed to assist local government authorities and accounting bodies.
Degree Doctor of Philosophy (PhD)
Institution RMIT University
School, Department or Centre Accounting and Law
Keyword(s) Assets (Accounting) -- Valuation
Local finance -- Victoria
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Created: Mon, 29 Nov 2010, 16:09:00 EST by Catalyst Administrator
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