Public Expenditure Return as A Proposed Accounting Concept for The Disclosure of Social Performance of Governmental Sector

Abstract

Although the primary goal of the governmental sector is a social goal that is to raise the level of social welfare of citizens, the International Public Sector Accounting Standards (IPSAS) did not regulate the process of recognition and accounting disclosure of financial information which enables of the evaluation social performance of this sector, the reason of that is the lack of a scientific concept that can be measured and disclosed as a financial information – in the governmental sector – express the social benefits obtained by citizens as a result of the public expenditure done by the governmental sector units. The researcher proposed the concept of public expenditure return as an expression of those benefits, which are considered as social revenue for governmental sector units, to be disclosed through an independent financial statement called the social performance statement. It must be approved as a financial statement that must be prepared by governmental sector units in addition to the four financial statements stipulated in IPSAS 1 which are represented in the statement of: (Financial Position – Financial Performance Change in net assets – financial flows).