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Financial performance in the public sector

The title selected for the project is It is important to study the topic in detail because the financial reporting and performance measurement areas vary greatly among the private and public sector in all the countries. The reporting standards used in public sector are gaining importance day by day and many accounting and reporting policies have been introduced for them as well. Though public sector financial performance measurement has gained significant importance over the last few years but very few people are aware of the changes in measurement of financial performance and reporting in the two entirely different sectors.

The research problem identified for the research is that the awareness of common people even business students is very lower for the measurement of financial performance in public sector; the research aims to explore the details of financial performance in public sector and also analyse the indicators of financial performance and their uses. Different performance indicators are used in different situations so it is important to analyse all the performance indicators used in public sector reporting and present the situations when each is applicable.

We are interested in doing research on this topic because it has got great important over last few years and also this research will enable many people in the society to understand what is the different when it comes to reporting in the public sector. Secondly, we believe that this topic will add value to my personal knowledge and is aligned with our personal interests as we have always been interested in the measurement of financial performance. Financial performance in the public sector is entirely new concept for us as well so we expect that it will be a value addition in our personal lives as well.

3. Preliminary Review of the Literature
A lot of research has already been carried out on the  The research previously conducted has focused on the institutional processes for the reporting the performance of public sector whereas no research has focused on creating the understanding among the public about the topic. The past researches pretty much focus on the standards established by the local institutions and their implementation in the public sector. Most of the past researchers have based their findings on the qualitative data; not much quantitative research has been carried out. For example: Modell (2001) based his research on…