While the primary focus is often on the annual operating surplus or deficit, this measure only tells part of the story. Performance
measurement is much broader in the public
sector than it is for a business enterprise focused primarily on delivering profits.
The statement of financial position
This financial statement presents net debt or
net financial assets, as well as accumulated
surplus or deficit. Both measures help readers see the cumulative impact of past transactions and events on future revenue
requirements and service capacity.
Net debt or net financial assets
Net debt, a term unique to public sector financial reporting, refers to the difference
between an entity’s financial assets and its liabilities at a specific point in time. Because
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