Governmental accounting standards could jeopardize constitutional safeguards worldwide.
The article discusses how governments worldwide are adopting business-style accounting practices, influenced by Australia and New Zealand. These practices, guided by International Financial Reporting Standards or International Public Sector Accounting Standards, have constitutional and political implications. Business-style accounting may not fully meet governments' public accountability needs. Evidence from New Zealand shows the challenges. The development of IPSAS was initially led by New Zealand. The article advises other countries to consider these implications before implementing similar practices.