Accounting for public sector assets and potential implications for services: A review of related challenges

Improving the information system of public sector assets is an essential part of the new public management approach. The need to recognize public assets and its efficient and effective use in many countries, both at the federal and local government levels, is guided by the idea that the government and the public want to have a complete picture of the country's assets and the government is responsible for managing public resources for the benefit of all citizens. The purpose of this article is to define, recognize and measure public sector assets and investigate the potential implications for services in public sector assets. In this regard, two important questions are raised and based on theoretical foundations, previous research and the opinions of public sector accounting standard setting boards at the international level, especially IPSASB, it is discussed. This article provides appropriate insights to define, recognize and measure public sector assets and report them in financial statements.