09 Jul DECISION MADE BY THE COMMONWEALTH GOVERNMENT
Water Accounting Standards Board
Introduction
The essay contains the theoretical perspective of the decision that was made by the Commonwealth Government to create a new body called the Water Accounting Standards Board. The theoretical perspective that has been used is the public interest theory of regulation which is used in accounting under regulation of financial accounting. It promotes the interest of the public in the accounting system which was lacking before the creation of the Water Accounting Standards Board. The importance and the effects of regulation in accounting for water have been explained in the essay. The decision of the Commonwealth Government has been explained theoretically. The essay also contains the discussion whether the Water Accounting Standard Board is expected to be effective. The effectiveness of the Board has been discussed and the reason why it is expected to be effective has been discussed in details.
Explanation in a theoretical perspective of the decision made by the Commonwealth Government
The decision of the Commonwealth Government to create a new body by the name of Water Accounting Standards Board was made because they wanted to create a system that regulates financial accounting and reporting. Basing their decisions on theoretical perspective, the aim of the creation of Water Accounting Standard Board was to incorporate the regulation of financial theory in the water sector through the use of public interest theory of regulation. As Water Accounting Standard Board, (2011), puts it, the system that was used before for the accounting of water value and volumes was inc
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