Cross‐Sector Transfer of Consolidated Financial Reporting – Conceptual Concerns

This article addresses a major concern about the use of particular accounting concepts, notably those of control and assets, for whole‐of‐government consolidated financial reporting. While whole‐of‐government consolidated financial reports may resemble the formats required by accounting standards and so provide a benchmark for comparative purposes, inherent weakness in the specification of underpinning concepts means that proper and full application of the consolidation methodology cannot be assumed. A study of the whole‐of‐government consolidated financial reports of the Commonwealth, state and territory governments of Australia revealed that significant assets, obligations and controlled entities have not been included.