Comparison Between Business and Public Sector Reporting

Question: Discuss about theComparison Between Business and Public Sector Reporting. Answer: Introduction The present report is based on the differences available in reporting format of Business and public sectors. The information regarding key financial resources and key performances indicators have been discussed in the report. Analytical Summary: Key Performance Indicators The above table represents the key performance indicators of all the three organisations. As a department of social service and department of treasury finance are related to the government sector, hence their performance will not be measured on financial parameters as in the case of the private sector and the same has been presented above. The performance of the two organisation is on the basis of the work done by the for the benefit of society. In the case of Australia post, details regarding the reason for loss have been provided in the annual report, and the same is not present in the report of other two organisations. The annual report of government organisation mainly provides details regarding the programmes organised by them for the welfare of society and the annual report of private organisations emphasis on the achievements attained by the company in the industry to which it belongs. It consists a statement of activities it has performed for the benefit of environment and so ciety. In all three performance of, Department of treasury and finance is better it is because they are generating surplus by making effective utilisation of available resources. Key Financing Sources The financing sources of the government sectors are the funds which are provided to them as per the regulations and law. On the other hand, sources of private sectors are equity and borrowing which are made available to them according to their profitability status by external resources. The funds are appropriated to government organisations according to the need or nature of the liability which has to be completed and not on the basis of profit or solvency status of the organisation. The main focus is given on the work done by the organisations in the annual report of government organisation and in the case of private sectors the emphasis is on the profit, turnover and sources of finance and parameters regarding the solvency of organisation. Table showing comparison of key performance indicators and sources of financing of government and private sector Name of the entity Income statement Position statement Cash flow statement Statement of changes in equity Statement of commitment Key Performance Indicators Key sources of financing Department of social service Yes Yes Yes Yes No Social Security Families and Communities Ageing and Aged Care (Department of Social Services Annual Report 201415) Finance is provided through the appropriation of act payment is received for two kinds of funding departmental and administering. Australia Post Yes Yes Yes Yes No Loss after tax of $221.7 million which included loss of incorporation year i.e. $190million. Cash Investment amounting $ 349.9 million has been made across projects and asset replacement and acquisition. Parcel service business is the key driver of growth as it delivered growth uplift of 3.6% or $112.8 million. (Australian Post Annual Report 201415.) 1. Issue of equity 2. Bonds. 3. Borrowings. Department of treasury and finance Yes Yes Yes Yes Yes Operating cash flows surplus to revenue. Gross debt to revenue Interest expense to revenue. (VIC Government Financial report 2014-2015.) 1. Advances. 2. Borrowing. 3. Deposits. References Australian Post Annual Report 201415. [Online]. (2015). Available throughhttps://auspost.com.au/about-us/publications. [Accessed on 25th September 2016.] Department of Social Services Annual Report 201415. [Online]. (2015). Available through https://www.dss.gov.au/sites/default/files/documents/10_2015/dss_2014-15_annual_report_wcag.pdf. [Accessed on 25th September 2016.] VIC Government Financial report 2014-2015. [Online]. (2015). Available throughhttps://www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Reports/2014-15-Financial-Report-incorporating-Quarterly-Financial-Report-No-4.[Accessed on 25th September 2016.]