The Issue of Accounting Entity Definition in Regards to Noms in the Area of a Public Company in the Uk

1376 Words Feb 11th, 2012 6 Pages
The UK public sector has been transformed over the past few decades. In an increasingly global economy, the main lever by which central governments can influence the success of the domestic economy is by ensuring its public sector operates efficiently. The central governments of the developed economies have adopted similar change agendas to transform their public sectors. These change agendas entail the introduction of new structures, new kinds of organizations and a ‘reinvention’ of many parts of the public sector. The intention of successive governments has been the creation of a ‘New Public Sector’, which is more strategic and corporate in its thinking. This ‘New Public Sector’ is intended to replace a public sector characterized by …show more content…
Additionally, by seeing NOMS as an accounting entity in combination with the UK-wide contractualization of publicly funded services and the privatization of some of the national industries, emphasis is put on the application of private sector financial controls. Its high operational independency leads to providing more and fuller comparable information on the municipal finances and operations. This is obvious when looking at the private sector as an example: Financial reports are regarded as satisfying the needs of a set of unknown users with multiple objectives – including shareholders, other investors, creditors, employers, state agencies and the public (Kurunmäki, 1999). Similarly, by recognizing NOMS as an accounting entity, its financial controls are to serve the needs of different constituencies. By that, political decision-makers and the public are able to evaluate NOMS’ financial position and to critically compare its performance with other similar service providers, whether public or private. Moreover, the financial statements on a sub-unit level allow improving the financial management of the respective sections by “endowing management with new possibilities for monitoring, evaluating, challenging and comparing the performance of service providers (Kurunmäki, 1999).”
On the other hand, issues involved in the representation of NOMS as an accounting entity involve

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