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New development: The protective role of conservatism in public sector accounting

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  • Andreas Glöckner

Abstract

This article picks up a discussion in international business accounting about the appropriate definition and use of conservatism (or prudence) and calls for a similar discussion in public sector accounting. If financial reports present an overly optimistic situation, politicians might use them to justify spending public money that is not there, risking the sustainability of services and ‘borrowing’ from future generations.

Suggested Citation

  • Andreas Glöckner, 2016. "New development: The protective role of conservatism in public sector accounting," Public Money & Management, Taylor & Francis Journals, vol. 36(7), pages 527-530, November.
    • Handle: RePEc:taf:pubmmg:v:36:y:2016:i:7:p:527-530
    DOI: 10.1080/09540962.2016.1237161
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    References listed on IDEAS

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    1. Basu, Sudipta, 1997. "The conservatism principle and the asymmetric timeliness of earnings," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 3-37, December.
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