public interest accounting

Recently, the Financial Accounting Standards Board (FASB) revised its ‘conceptual framework’. The FASB’s conceptual framework is “intended to serve the public interest by providing structure and direction to financial accounting and reporting to facilitate the provision of unbiased financial and related information [which] helps capital and other markets to function efficiently in allocating scarce resources in the economy and society” (emphasis added). However, it is not the mission of either the Financial Accounting Foundation (FAF, the parent of the FASB), or the FASB to serve the public interest. Therefore, whether the FASB’s conceptual framework can serve the public interest as intended, or whether the conceptual framework is reconcilable with the public interest is questionable. This paper explores the question of whether the conceptual framework is compatible with the public interest. The question is important to consider because if the conceptual framework cannot serve the public interest as intended, then it will be necessary to revise the conceptual framework in order to achieve its intended purpose of serving the public interest.

Purpose – This paper aims to identify stakeholder perceptions on the service performance accountability of Malaysian local authorities. Design/methodology/approach – A questionnaire survey provides the primary source of information, and both descriptive and analytical methods are employed to support the analysis of the empirical findings. Findings – The paper shows that despite a strong interest amongst stakeholders for greater accountability of Malaysian local authorities, a standard definition and scope of accountability has not emerged. However, the findings do indicate a new bond of accountability emerging between local authorities and its broader public than previously existed. Research limitations – The findings and discussion are limited to the propositions put forward in the questionnaire. Alternative research methods would complement the findings. Originality/value – The findings contribute to our understanding of accountability as interpreted by key stakeholders of local a...