Table of Contents
A Theory of Accounting and Controls for Organizations Producing Public-Versus Private-Goods
Compare Public and Private Good Organizations
Public Good Organizations
Outline
Faculty Teaching by Subject
Calls for Reforms
Four Characteristics of Bureaucracy
PPT Slide
Cries in the Wilderness
Legitimate Reasons for Different Accounting
Lack of Theory of Organizations to Produce Public Goods
A Framework for Contract Theory of Organizations
PPT Slide
PPT Slide
Necessary Conditions
Functions of Accounting
Special Problems in Control of Managers
What are public and private goods?
Pure private goods do not satisfy either condition
Comparing Private and Public Good Organizations
Resource Flows
PPT Slide
PPT Slide
Residual Claims
Stock Market Consequences of Residual Claims
Public Goods Organizations
Defining Managers’ Contracts
Product Market Discipline
Public Good Organizations’ Beneficiaries
Private Good Contract in Public Good Organization
Redistribution of Decision Rights
Product Decision Rights
Product Decision Rights in Public Good Organizations
Investment/Production Decision Rights
Investment/Production Decision Rights in Public Goods Orgs.
Accounting and Controls
Accounting and Control Differences
Entities, Funds and Consolidation
Detail in Public Good Financial Reports
Reports Reflect the Decision Structure
Fixed Assets and Depreciation
Public Good Organizations
Depreciation in Private Good Organizations
In Public Good Organizations
Accruals and Revenue/Expense Recognition
Budgets, Appropriations and Encumbrances
Which one is the Independent Variable?
Considered Polar Cases Only
Bureaucracy As A Dirty Word
Unequal Race
Thank You
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