“Best practice financial management is characterised by accrual accounting, budgeting, management and reporting” (Commonwealth Management Advisory Board, 1997, p. 2).
a) What are the differences between “full accrual”, “modified accrual” and “cash budget”?
b) Explain the issue of transparency.
c) Provide examples of reporting distortions or discrepancies when using specific accounting tools (i.e. accrual versus cash).
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