The financial reporting in public sector from the perspective of international public sector accounting standards and a model proposal for municipalities

Unlike the common view in our country, the share of the public sector in economy in developed countries of the world is wider than that of the public sector in our country. In other words, the public sector in the developed countries takes more important place than that of the developing countries. As a consequence, for the growing economy of our country, the designation of the financial structure of the public sector properly is quite important. The efficient and productive use of the public sources, the administration of the institutions of the public sector transparency and accountability, the formation of the public sector financial structure which have modern norms and international acceptability are provided by the public sector accounting and the financial reports which are considered as its outcomes. Consequently, the financial reports that are comprehensible, comparable, reliable and appropriate to necessities, take quite important place in the proper measuring, evaluation and improvement of the activities of the public sector institutions. The struggle with the corruption and the rational use of the public sources is only possible by means of the preparation of the financial reports according to modern norms and the right decisions given by the information users may be provided by hindering the use of the public sources on political purposes. When the recent developments in the public sector in our country are considered, it can be seen that a registration order was introduced previously. However, in view of the developments in the world, primarily the establishment of the public sector accounting standards, and later the introduction of the registration order, are considered more suitable in terms of the production of the proper and reliable accounting knowledge with high quality in the public sector. At the same time, in this way, providing comparability in international area, and also the production of the financial knowledge required for the use of the public sources and the recreation of sources will be realized. In the perspective of the numbered 1 ? Presentation of Financial Statement? of International Public Sector Accounting Standards which were published by the International Federation of Accounting Committee, it has been tired to develop a model with a view to prepare financial reports of the municipalities which are considered within the local governments in the field of the public sector in our country.