Is government as transparent as private organizations or should they be more transparent and are accounting practices similar?
The government maintains that they are as transparent as other organizations, but in reality, this has been argued over the years. One of the main differences is that a governmental organization is working with a budget that can go into the millions, billions, and even trillions of dollars whereas a private organization's budget is much smaller, even if it is a company the size of Apple. When we work with very large budgets, the financial statements are also generally very large, involve multiple disclosures, and other related elements that are applicable to massively large organizations. It would be very difficult to maintain transparency in that type of ...
This solution discusses the transparency of government in comparison to a private organization, and also discusses the main difference(s) in accounting methods used.