The Principle of Prudence in Government Accounting
Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence
ISBN: 978-1-80117-162-5, eISBN: 978-1-80117-161-8
Publication date: 20 March 2023
Abstract
The principle of prudence plays a critical role in the design of national and international public sector accounting. Whereas in private sector accounting there is a substantial body of literature with regard to conservatism, the academic debate on the prudence principle in public sector accounting has only started recently. The aim of this chapter is to analyse whether the International Public Sector Accounting Standards (IPSASs) address asymmetric prudence with respect to measurement. This chapter shows that the existence of requirements leading to asymmetric prudence with regard to the measurement of assets is widespread throughout the suite of IPSASs.
Keywords
Citation
Adam, B., Heiling, J. and Meglitsch, T. (2023), "The Principle of Prudence in Government Accounting", Caruana, J., Bisogno, M. and Sicilia, M. (Ed.) Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence (Emerald Studies in Public Service Accounting and Accountability), Emerald Publishing Limited, Leeds, pp. 63-83. https://doi.org/10.1108/978-1-80117-161-820231004
Publisher
:Emerald Publishing Limited
Copyright © 2023 Berit Adam, Jens Heiling and Tim Meglitsch