COURSE : ACC 232 - FINANCIAL ACCOUNTING I
CREDIT HOURS : 3 CREDITS
SEMESTER/SESSION : 2nd SEMESTER, 2024/2025 SESSION
PREPARED BY : ZEQUEL MICHAEL
STUDENT ID : 998474209
REFERENCE : PUBLIC SECTOR ACCOUNTING by JAMALUDDIN MAJID
PUBLIC SECTOR ACCOUNTING CONCEPT
Accountancy sector public own close connection with application and treatment
accounting in the public domain. Public domain Alone have a relatively large area extensive
and complex compared to with sector private / business. Role accountancy sector public
intended For give service public in frame fulfil need public. Some duties and functions sector
public Actually can also be done private sector. However, for roles and duties certain
existence sector public No can replaced by sector private.
In some things, accounting sector public different with accounting in the sector
private. Difference nature and characteristics accountancy sector public and sector private
due to Because existence difference environment that influences. Differences nature and
characteristics sector public with sector private can seen from a number of thing, namely :
purpose organization, source financing, pattern accountability, structure institutional,
characteristics budget, stakeholders affected, systems management / accounting. Currently,
the sector public sued For notice quality and professionalism and value for money in operate
its activities. Value for money is draft management organization sector public based on three
element main, namely : economy, efficiency, and effectiveness. In addition, other demands
are the need accountability public and good governance.
Types of Public Sector Accounting
term sector public first used in 1952. At that time that, sector public often associated
as parts and management economy related macros with development and institutions
executor development. In the 1980s, sector reform public carried out in countries industry
forward. Sector reform public the realized with adopt New Public Management (NPM)
approach and reinventing government. NPM refers to the theory core management that
practice business commercial and management sector private is more Good compared to with
practices and management in the sector public. Therefore that, for repair performance sector
public, adopted a number of practices and techniques management applied in the sector
private to in sector public, such as adoption mechanism principles, tender competition and
privatization companies public.
With existence changes in the sector public there were also changes in accounting
sector public. Accounting sector public Then follow and adapt self with changes that occur.
As example is the occurrence change system accounting and accounting cash based becomes
accountancy based on accrual. Changes accountancy from cash basis to accountancy based
on accrual is part important and sector reform process public. Currently accountancy sector
the public in Indonesia is experiencing sufficient development means, one of them marked
COURSE : ACC 232 - FINANCIAL ACCOUNTING I
CREDIT HOURS : 3 CREDITS
SEMESTER/SESSION : 2nd SEMESTER, 2024/2025 SESSION
PREPARED BY : ZEQUEL MICHAEL
STUDENT ID : 998474209
REFERENCE : PUBLIC SECTOR ACCOUNTING by JAMALUDDIN MAJID
with birth regulation legislation that regulates about implementation accountancy sector
public specifically in government. Development accountancy sector public covering areas of
concentration:
1. Accountancy finance
2. Accountancy management
3. Inspection
Development accountancy finance sector public especially in government has marked
with existence standard accountancy government. Existence standard accountancy
government push implementation accountancy finance toward more changes good. Standard
accountancy government will become guidelines for interested parties to reporting finance
government in assess and evaluate implementation activity a entity government. In addition,
for management implementation standard accountancy will give convenience in operate
function planning, management and control on all over assets, liabilities, and equity of
government funds For interest society. Implementation standard accountancy government
will push functioning accountancy sector public as a medium for realize accountability to the
public, especially the community and representative institutions
For reporting purposes performance said, the government need information
accountancy management especially For determine indicator performance (performance
indicator) as base evaluation performance. Management will difficulty For do measurement
performance if No There is indicator adequate performance. Indicators performance the can
nature financial and nonfinancial. Information accountancy management own role main in
determine indicator performance sector public. In the field of inspection sector public, has
born standard inspection state finance. Audit in the sector public become point central in the
process of achieving accountability public. Examination in the sector public specifically
government consists of over 3 ( three ) types that is:
1. Inspection finance,
2. Inspection performance, and
3. Inspection with objective certain
Inspection finance aiming For give reasonable assurance whether report finance has
served in a way reasonable, in all material things according to with principle applicable
accounting general in Indonesia or accounting basis comprehensive besides principle
applicable accounting common in Indonesia. Examination performance is inspection on
management state finances consisting of on inspection aspect economy and efficiency as well
as inspection aspect effectiveness (value for money audit).
Objectives of Public Sector Accounting
Any things that are created without objective accountancy finance, as well as Public
Sector Accounting. Here This a number of objective from existence accountancy sector
public as described by the American Accounting Association (1970):
1. Accountability, The purpose of accountancy sector public is used For give
information that can be useful for sector managers public and can used in
COURSE : ACC 232 - FINANCIAL ACCOUNTING I
CREDIT HOURS : 3 CREDITS
SEMESTER/SESSION : 2nd SEMESTER, 2024/2025 SESSION
PREPARED BY : ZEQUEL MICHAEL
STUDENT ID : 998474209
REFERENCE : PUBLIC SECTOR ACCOUNTING by JAMALUDDIN MAJID
reporting responsibility answer field, division, and source the power that is below
the shade. Apart from that, I mean from the purpose This is used For report public
activities on operation government as well as Usage public budget.
2. Management Control, The purpose of existence accountancy sector public is can
give information that is indeed needed in management a institution / organization
in a way precise, fast, efficient and economical on operation as well as use from
source budgeted power in organization /institution.
Accountancy sector public relate with 3 trees main, namely as provider information
control management as well as accountability. Information accountancy used as material
consideration at the time taking A decision, in matter This help Work from manager For
allocate source existing power. Information accounting is also used in determination costs
incurred in a activity as well as its eligibility in matter economical or technical. In addition,
information it can also be used in choose which programs are appropriate, effective,
economical For evaluation investment. Information Accountants are also very much needed
in assessments performance public sector.
Characteristics Environment Public Sector Organization
Organization sector public move in very complex environment. Components
environment that influences organization sector public includes economic, political, cultural
and demographic factors ( Haryanti et al., 2007):
1. Economic factors, factors economy that affects organization sector public among
others, growth economy, level inflation, growth income per capita (GNP/GDP),
structure production, power employment, domestic capital flows, reserves foreign
exchange, value exchange of money, debt and aid abroad, infrastructure,
technology, poverty and inequality economy, informal sector.
2. Political factors, factors politics that influence sector public among others,
relations between state and society, legitimacy government, type ruling regime,
state ideology, elite politics and mass, network international, institutional.
3. Cultural factors, factors cultural influences organization sector public among
others, diversity ethnicity, race, religion, language and culture, system values in
society, history, sociology society, characteristics society, level education.
4. Demographic factors, factors demographics that influence organization sector
public among others, growth population, structure age population, migration, level
health.
Characteristics Environment Public Sector Accounting
Environment operational organization sector public specifically government
influential to characteristics objective accounting and reporting his finances. Characteristics
important environment government that needs under consideration in set objective accounting
and reporting finance is as following (Haryanto et al., 2007). Structural Characteristics
Government and Services Provided :
1. Form general government and separation power, delegation power is separation
authority between executive, legislative, and judiciary. The system This intended
COURSE : ACC 232 - FINANCIAL ACCOUNTING I
CREDIT HOURS : 3 CREDITS
SEMESTER/SESSION : 2nd SEMESTER, 2024/2025 SESSION
PREPARED BY : ZEQUEL MICHAEL
STUDENT ID : 998474209
REFERENCE : PUBLIC SECTOR ACCOUNTING by JAMALUDDIN MAJID
For supervise and guard balance to possibility abuse power between organizer
government. As applicable in environment finance government, party executive
compile budget and submit it to party legislative For get agreement. Parties
executive responsible answer on organization finance the to party legislature and
the people.
2. System government autonomy, in substantial, there is three scope government in
system government, namely government center, government provinces, and
governments district / city. The government is more wide its coverage give
directions to the government whose scope more narrow.
3. The influence of the political process is one of them objective main government
area is increase welfare all the people. In connection with that, the government
area make an effort For realize balance fiscal with maintain ability finance source
area from income taxes and resources other use fulfil desire society. One of the
important features in realize balance the is the ongoing political process For align
various interests that exist in society.
4. Connection between payment tax with service government area, although in
condition certain government area to pick up in a way direct on the services
provided, basically part big income government area sourced from levy tax in
frame give service to society. Number tax collected No relate direct with services
provided government area to must taxes. Taxes collected and services provided by
the government area contain properties certain mandatory under consideration in
develop report finance, including among others following : payment tax No is
source income in nature Like willing, amount taxes paid determined by the tax
base tax as determined by regulation legislation, efficiency services provided
government area compared to with the levy used For service meant often difficult
measured in connection with monopoly services by the government.
Mahsun et al. (2016) stated that the public sector is all something related with interest
general and providers goods or service to paid public through tax or other regulated state
income with Law. Field health, education, security and transportation is example sector
public. Therefore that, sector area the public is very broad, then in its implementation often
handed over to the market, but government still keep an eye on him with a number of
regulation. Even a number of field sector public managed with use source funding from
donation or charities funds.
Accountancy sector public directed For reach results certain, which must be own
benefit for public. In some matter accountancy sector public different with sector private, due
to Because existence difference environment that influences. Nature and organization sector
public especially is purpose, nature and sources funds. Nature of the organization sector
public is organization non-profit, no look for profit. The goal is give service to society, and
provide or increase his welfare. The funder does not to will For ask for refund, interest, etc
own organization. Accounting sector public move in very complex environment. Components
environment that influences sector public includes economic, political, cultural and
demographic factors ( Renyowijoyo, 2010).
