The report notes that public sector entities in Australia complain of financial reporting complexity, inconsistent requirements and that the reports do not focus on the needs of stakeholders. It also notes that the cost of preparation (including valuation of non-financial assets) and audit of these financial statements is estimated to be more than $1 billion annually.

To understand the basis for public sector entities’ criticism, the new research report looks into whether the current Australian public sector financial reporting requirements are necessary to adequately hold the public sector accountable for the use of taxpayers’ monies and benchmarks the financial reporting requirements applicable to public sector entities in Australia and seven comparable international jurisdictions (Canada, Hong Kong, New Zealand, Singapore, South Africa, UK, and United States of America).

The research report is available here.