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Accounting standards (AAS27 Financial Reporting by Local Governments, AAS 29 Financial Reporting by Government Departments, and AAS 31 Financial Reporting by Government) in line with those applicable to private sector are being implemented on government agencies in Australia. Implications of these standards are discussed. The issues related to these public sector standards are also examined.

Depreciation accounting of public sector assets like infrastructure has raised a debate amongst CPA's. The issues involved in recording depreciation swing from equity to growth. Suggestions are offered to ensure that CPAs record depreciation without macroeconomic and fiscal considerations that the politicians and the treasury economist propound.

A review of the new accounting standards relating to public sector accounting is presented. An attempt is made by these standards to bring public sector accounting in Australia on par with private sector. However, there are some dissimilarities also. These differences that make public sector different from private sector are highlighted, and accounting issues arising there from are raised.

The implications of the applicability of International Financial Reporting Standards and other reforms and environmental changes on public sector in Australia are discussed. The change in the roles of members of CPA Australia employed in public sector is also discussed.