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Title

Financial targets and dividend requirements for Commonwealth Government business enterprises: are they appropriate and how should they be determined and measured?

Author(s)

Xavier, Patrick;  Graham, Barry

Abstract

In June 1986, the Commonwealth Department of Finance released a policy discussion paper which proposed that financial targets and dividend payments be required of Commonwealth Business Enterprises. A major purpose of our paper is to examine the economic rationale of financial targets and divident requirements for such enterprises. The Department of Finance discussion paper does not specify details of the proposed financial targets and dividend requirements, nor of how they would be measured; these are presumably being considered. Thus another major purpose of our paper is to assist in this consideration. It seeks to do this by examining the various approaches to the determination of financial targets, including accounting methods and their financial implications. In particular, the paper assesses Victoria's approach to, and experience with, the use of financial targets and dividend requirements for that state's public enterprises based on "Rate of Return Reporting" (a version of Current Cost Accounting).

Publication type

Working paper

Research centre

Swinburne Institute of Technology

Source

Faculty of Business staff papers (Swinburne Institute of Technology), no. 38

Publication year

1987

Keyword(s)

Australian Government business enterprises;  Australia Post;  Government business enterprises accounting;  Overseas Telecommunications Commission (Australia) -- Accounting;  Telecom

Publisher

Faculty of Business, Swinburne Institute of Technology

Copyright

Copyright © 1987 Patrick Xavier and Barry Graham. Permission for use generously provided to Swinburne University of Technology by the copyright owners.

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