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CERTIFIED MANAGEMENT ACCOUNTANT 31

Public Sector Accounting for Better

Transparency and

Accountability

Sachini Vithana - B.com (Special),
ACMA, MIPA (Aus), AFA (UK)
Lead Finance - Remediumone (Pvt) Ltd.

Introduction

Financial transparency is the extent to lack of transparency and accountability The lack of transparency and
which an investor or a stakeholder of a in the public sector, which leads towards accountability in public sector has led
company has access to the company’s corruption, fraud and mismanagement to major risks to the efficiency of the
financial information including price of public funds. capital market, global market stability,
levels, market depths, audited financial and long-term sustainability at present.
reports etc. Even though transparency The main purpose of this article is to If we are required to build a society
is not a financial term, it has become provide the facts that prove proper that is sustainable and stable in the
increasingly important to stakeholders implementation of accounting methods long term, we must be prepared to take
of a company over the past few years. and standards can help the public responsibility for changes that will be
sector to achieve better transparency
Accountability can be defined as, “the and accountability of its performance. essential to more effectively manage
fact of being responsible for what public sector resources. Hence, people
you do and the ability to provide a The Importance of must gain a better understanding of the
satisfactory reason for the same, or the importance of public sector financial
degree to which it happens”. Transparency and reporting.
Accountability Transparency is achieved when citizens
Mostly, developing countries like Sri
Lanka are experiencing the gravity of a or taxpayers have access to information
www.cma-srilanka.org | Volume 06 -No. 2 - September 2021