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Establishing a Common Accounting Language: How GAAPs and IPSASs Promote Comparability in Government

Learn what GAAP is, its types, and why it’s vital for transparency and accountability in public sector accounting through IPSAS and national standards

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Private Sector Accounting Vs Public Sector Accounting

Public and private sector accounting are fundamentally different because their objectives are opposite: public welfare versus private profit. The public sector uses International Public Sector Accounting Standards (IPSAS) to ensure accountability for taxpayer money, while the private sector uses International Financial Reporting Standards (IFRS) to report to shareholders. Key differences include revenue sources (taxes vs. sales), the fact that public entities can survive financial crises that would bankrupt private companies, and the legal requirement for public bodies to disclose their budget performance externally.

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The Power of Public Financial Management in Strengthening Governance

Effective Public Financial Management (PFM) is crucial for economic stability, transparent governance, and efficient public service delivery. This article explores the key pillars of PFM, including budget formulation, internal controls, financial systems, and auditing. It highlights how digital transformation, AI-driven analytics, and blockchain are shaping the future of public finance. Learn how Edify Learning equips professionals with the skills to drive financial accountability and innovation in the public sector.

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