Discuss How Despite Significant Improvements in the Quality of Government

question 11

Essay

Discuss how despite significant improvements in the quality of government financial reporting over the years there are still serious, high profile public sector financial crises. How does the quality of financial reporting affect the ability to evaluate financial condition?

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Definitions:

Equity Account

An account that represents the owner's interest in a company's assets, typically reflecting the amount of funds that remain for the owners after all liabilities have been subtracted.

Non-controlling Interest

A minority shareholding of less than 50% in a subsidiary's equity, not giving the shareholder the controlling interest in the subsidiary's financial and operational policies.

Majority

The greater part or more than half of a total amount, often used to describe the ownership interest that allows for control in decision-making processes.

Voting Power

The total number of votes that can be cast by a shareholder or group of shareholders to influence company decisions in shareholder meetings.