Finance of Public Entities Homework Help

The finance objectives constitute the core of overall business objectives of private or public sector companies. There is a view that the PSUs (Public sector undertaking) need not have any financial objective as they are not expected to generate profits since their losses can be made good by the state.

The public entities are mainly concerned with:

• To identify the required expenditure for the entity
• The Sources of revenue for the entity
• How to Budget the process. Debt issuance (Bonds) for the public work projects
• The Central bank of the country are the strong players in public finance , they act as lenders as well as have strong influences on monetary and credit conditions in the economy.

Public finance in the planned economies has differed in fundamental ways from that in market economies. Some of the state owned companies generate profits that help to finance the government activities, these enterprises are mainly manufacturing and financial institutions .The proper government role provides a starting point for the analysis of public finance.

The Financial statements of the companies either its being public or private , is an important means of demonstrating how the public sector ,whether being it an individual entity or a whole-of government to meet its financial management responsibilities. The capacity and ability of entities to prepare their financial statements within required time frames is variable across the public sector. The Annual reports of the company are the most important vehicle by which the parliament and the community are able to hold a public sector entity’s accountability of its performance.

There are a large number of participants that are the users of the financial statements of the public entities .

These participants include:

• The Government and the Ministers. Parliament Committees
• Tax payers and the community. Employees
• Industry and community groups and
• The media

The above diverse range of users indicates the importance of public sector entities meeting their financial accountability responsibilities.