Scope of General Purpose Financial Reporting: an Accountability Perspective

Accountability in public sector entities requires disclosing information about management of public resources. Given the way the services they provide are funded and the dependency of service recipients on the provision of those services over the long term, accountability also requires providing information about matters such as the entity’s service delivery during the reporting period, and its capacity to continue to provide services in the future. Accordingly, accountability of public sector entities must embrace financial and nonfinancial information on the use of resources and services performed, and the ways in which they contribute to society. This information must be understandable to all stakeholders, especially to nonexpert citizens, particularly when it is addressed in a democratic accountability process.

Public sector entities have developed several types of reports to consider these issues. This chapter deals with discharging of accountability by public sector entities, addressing different reporting perspectives, complementing that of financial reporting.