Chapter 5: Elements of a Theoretical Framework for Public Sector Accounting

Despite the ancient origins of governmental accounting (Normanton, 1966; Chatfield, 1974) and the size and significance of governmental activity in modern times, the subject was, until recently, ignored by academics and practitioners alike. After a period of unwarranted neglect (see Perrin, 1981), the 1980s witnessed an upsurge of interest in public sector accounting. Its theoretical framework, however, is still largely undeveloped. In the inaugural issue of this journal, Lapsley (1988) reviews the public sector accounting research activities of the 1980s and concludes that “perhaps the most distinctive aspect of this research activity is the absence of a theoretical background which provides a framework for the development of accounting principles and practices in the public sector.”