having access to public funds and monopolies?

Governmental accounting standards are currently being dominated by the

accounting standards (internationally sometimes referred to as IFRS) originally
designed for the private sector. The so-called Generally Recognised Accounting
Practices (GRAP) that are being enforced in the public sector of countries such as
South Africa, one of the front-runners in this regard is based on the Generally
Accepted Accounting Practices originally developed for the private sector. The
above and common sense raises the question of whether this is the best solution. It
is of course cheaper and it is alleged that the history of separate development of
accounting practices for government has not been successful. Even at the onset of
the current fiscal crisis in Europe and other parts of the world it was argued
authoritatively that the sometimes inapplicable accounting practices of the private
sector being used, have contributed to the origination of, and belated reaction to, the
fiscal crisis.(1)
Sources (not directly quoted but used in synthesis):
1. Sanderson, I. Worldwide Credit Crisis and Stimulus Packages in Accountancy SA,
June 2009, p. 14.
2. Conradie, J.M. The applicability of Generally Accepted Accounting Practice in the
Central Government of South Africa (English summary of a thesis written in another
language) University of Pretoria, 1994.
3. Conradie, J.M. Die toepaslikheid van Algemeen Aanvaarde Rekeningkundige
Praktyk in die Sentrale Owerheid van Suid-Afrika. Universiteit van Pretoria, 1993.
(Original full text of the summary.) 4. Donald amcool