According to the IPSASB’s conceptual framework (IPSASB, 2014, §2.4), the primary users of general purpose financial reporting (GPFRs) of public sector entities are citizens, as well as “the legislature (or similar body) and members of parliament (or a similar representative body) are also primary users of GPFRs, and make extensive and ongoing use of GPFRs when acting in their capacity as representatives of the interests of service recipients and resource providers”.
Although it might be an acceptable assumption, questions may be raised regarding the real use by politicians, namely parliamentarians and members of government, of financial (and even of budgetary) information. An additional issue to the debate concerns the why of not using this type of information, if this is the case. One reason might concern the fact that such type of information is often too technical compared to the politicians’ skills and expertise, so dealing and coping with that information becomes quite difficult. In this context, one may consider that ‘information brokers’ (Rutherford, 1992; Heald, 2003), having adequate expertise, could act to improve the use and usefulness of budgetary and financial information by politicians, ultimately positively impacting on their debates and decisions.
If politicians are assumed as main users of financial information regarding public sector, it becomes therefore important to realise which are their information needs – what type of information they use and/or ascribe more importance, and for what purposes, and above all, which is their understanding concerning that financial information, regardless whether cash of accrual-based.
Assuming an overall lack of expertise by Members of Parliament regarding understanding accounting information, this study aims at analysing the type of information technical advisors as information brokers prepare, for parliamentarians to use in their activities. It also explores particular uses and usefulness Members of Parliament give to that information and how these can be affected by the intermediation of the technical advisors.
In Portugal, there are some bodies that are information brokers, acting as technical supporters and advisors at large to politicians in the Parliament and in Central Government. However, Political Parliamentary Groups might resort to other advisors who prepare information specifically for each group, hence acting as expert brokers and assessors. Therefore, it is also relevant to analyse the role of these individuals who provide technical support directly to Parliamentarian Groups, so that politicians can be better informed on certain accounting-related (financial and budgetary) matters.
To fulfil the objective above mentioned, this paper addresses the following research questions:
What type of information technical advisors as information brokers prepare, for Members of Parliament to use in their activities?
What type of accounting information Members of Parliament actually use in their day-to-day activities?
In what degree is the accounting information useful for Members of Parliament?
What is the role of the technical advisors as affecting the use and usefulness of accounting information by Members of Parliament?
Following a qualitative and interpretative methodology, the study draws upon interviews with heads of Political Parliamentary Groups and with their technical advisors related to financial matters.
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