Comparing Australian commonwealth, state and territory budget balance numbers

This article presents the findings from a case study of the 2004–05 annual budgets prepared by the Commonwealth, state and territory governments of Australia. The study examined the headline budget balance (general government sector surplus or deficit) announced in the budget papers and speeches of each of the nine governments. Findings indicate the adoption of varying measurement bases and a consequent lack of comparability in the headlined budget balance numbers. Accounting reforms have resulted in adoption of two different systems of accrual accounting by governments — the Government Finance Statistics (GFS) system and the professional Australian Accounting Standards (AAS) system — which provide significantly different measurements of the budget balance. However, there has been no prescription of the manner in which these alternative measures should be presented. This raises a number of questions from an accounting perspective.

Behind the headlines : an analysis of Australian Commonwealth, State and Territory budget balance numbers

The introduction of accrual accounting principles for government reporting in recent years has been complicated by the presence of two alternative financial reporting frameworks, the Government Finance Statistics (GFS) framework and the Australian professional accounting standard rules. This paper presents the findings from a study of the 2004-05 and 2005-06 annual budgets prepared by the Australian Commonwealth government and the governments of the six Australian States and the two Australian Territories. The study examined the basis for the budget balance numbers (government surplus or deficit) headlined in the budgets of each of the nine governments over the two year period. Findings indicate the adoption of varying measurement bases and a resultant lack of inter-governmental and inter temporal comparability. A number of departures from the measurements
prescribed in the reporting frameworks were also observed.

Australian government budget balance numbers: the hybrid nature of public sector accrual accounting

Purpose - The purpose of this paper is to analyse the nature and comparability of budget balance (surplus/deficit) numbers headlined by the Australian Commonwealth Government and the governments of the six Australian States and the two Australian Territories. It does this in the context of the transition to Australian accounting standard AASB 1049 Whole of Government and General Government Sector Financial Reporting. Design/methodology/approach - A case study research method is adopted, based on a content/documentary analysis of the headline budget balance numbers in the general government sector budget statements of each of the nine governments for the eight financial years from 2004-2005 to 2011-2012. Findings - Findings indicate some variation in the measurement bases adopted and a number of departures from the measurement bases prescribed in the reporting frameworks, including AASB 1049. Findings also reveal that none of the nine governments have headlined a full accrual based budget balance number since the implementation of AASB 1049 in 2008. Research limitations/implications - While the study focuses on the Australian general government sector environment, it has significant implications in highlighting the ambiguity in the government budget balance numbers presented and the monitoring and information asymmetry problems that can arise. Research findings have wider relevance internationally in highlighting issues arising with the public sector adoption of accrual accounting. Practical implications - The paper highlights the manner in which governments have been selective in the manner in which they present important budget aggregates. This has important practical and social implications, as the budget balance number is one of the most important measures used to evaluate a government's fiscal management and responsibility. Originality/value - The paper represents the first detailed examination of aspects of the effect of the transition to AASB 1049.

Fiscal stringency and fiscal sustainability : panel evidence from the American state and local governments

Most state (and local) governments in the U.S. operate under formal fiscal rules which limit their ability to run budget deficits and resort to debt financing. A priori, one would expect to find evidence in favor of an intertemporally balanced budget, or fiscal sustainability, for these states, especially those characterized by a relatively high degree of fiscal stringency. We test this hypothesis for a panel of 47 state–local government units (1961–2006) using four budget balance definitions and several subsamples defined based on regional classifications, or presence of certain balanced budget requirements (BBRs). Our results, obtained from panel estimation techniques that allow for general forms of serial and cross-sectional dependence, suggest that a sufficient condition for “strong” sustainability is consistently satisfied for the full sample and all subsamples in relation to balances that include special funds and/or federal grants. However, we find evidence consistent with the “weak” version of sustainability for the full sample and some regional subsamples (particularly Far West dominated by California) in at least one of the two balances that exclude these items. Finally, the BBRs seem to matter only in relation to the sustainability of the more narrowly defined balances. We discuss the implications of these findings for the role of fiscal rules and federal grant policies.

Exchange rate regimes and fiscal discipline: the role of trade openness

This study revisits the relationship between exchange rate regime (ERR) choice and fiscal discipline focusing on the role of trade openness. The conventional theoretical view is that fixed regimes bring about more fiscal discipline, while the recent literature argues that flexible regimes are more disciplinary. Empirical studies have provided mixed evidence. Using a panel dataset for a large number of developing and developed countries, as well as pooled panel OLS and instrumental variables (IV) estimation techniques, we find support for both views. We document that a fixed ERR is disciplinary at low levels of trade openness, while a flexible regime produces a greater fiscal discipline above a certain level of trade openness. Moreover, this relationship applies to only developing countries. These findings remain robust across different measures of fiscal outcomes, a number of controls, across different sub-samples, and are supported by both annual and five-year averaged panel data.

A truthful double auction for device-to-device communications in cellular networks

Data traffic in cellular networks has dramatically increased in recent years as the emergence of various new wireless applications, which imposes an immediate requirement for large network capacity. Although many efforts have been made to enhance wireless channel capacity, they are far from solving the network capacity enhancement problem. Device-to-Device (D2D) communication is recently proposed as a promising technique to increase network capacity. However, most existing work on D2D communications focuses on optimizing throughput or energy efficiency, without considering economic issues. In this paper, we propose a truthful double auction for D2D communications (TAD) in multi-cell cellular networks for trading resources in frequencytime domain, where cellular users with D2D communication capability act as sellers, and other users waiting to access the network act as buyers. Both intra-cell and inter-cell D2D sellers are accommodated in TAD while the competitive space in each cell is extensively exploited to achieve a high auction efficiency. With a sophisticated seller-buyer matching, winner determination and pricing, TAD guarantees individual rationality, budget balance, and truthfulness. Furthermore, we extend our TAD design to handle a more general case that each seller and buyer ask/bid multiple resource units. Extensive simulation results show that TAD can achieve truthfulness as well as high performance in terms of seller/buyer sanctification ratio, auctioneer profit and network throughput.

Flight altitude of trans-Sahara migrants in autumn: a comparison of radar observations with predictions from meteorological conditions and water and energy balance models

Radar observations on the altitude of bird migration and altitudinal profiles of meteorological conditions over the Sahara desert are presented for the autumn migratory period. Migratory birds fly at an average altitude of 1016 m (a.s.l.) during the day and 571 m during the night. Weather data served to calculate flight range using two models: an energy model (EM) and an energy-and-water model (EWM). The EM assumes that fuel supply limits flight range whereas the EWM assumes that both fuel and water may limit flight range. Flight ranges estimated with the EM were generally longer than those with the EWM. This indicates that trans-Sahara migrants might have more problems balancing their water than their energy budget. However, if we assume fuel stores to consist of 70% instead of 100% fat (the remainder consisting of 9% protein and 21% water), predicted flight ranges of the EM and EWM largely overlap. Increased oxygen extraction, reduced flight costs, reduced exhaled air temperature, reduced cutaneous water loss and increased tolerance to water loss are potential physiological adaptations that would improve the water budget in migrants. Both the EM and EWM predict optimal flight altitudes in agreement with radar observations in autumn. Optimal flight altitudes are differently predicted by the EM and EWM for nocturnal spring migration. During spring, the EWM predicts moderately higher and the EM substantially higher flight altitudes than during autumn. EWM predictions are therefore in better agreement with radar observations on flight altitude of migrants over the Negev desert in spring than EM predictions.

Ensuring balance in corporate governance : parts 2F.1 and 2F.1A of the Corporations Law

Effective corporate governance must balance the competing, and at times conflicting, objectives of efficient endeavour and accountability. The CLERP amendments to the Corporations Law introduced on 13 March 2000 go a long way towards providing this balance. While the business judgement rule was introduced to promote efficient endeavour, Pts 2F.1 and 2F.1A maintain corporate accountability. This article compares Pts 2F.t and 2F.1A of the Corporations Law. It is argued that, although there are procedural and substantive differences between the two parts that need to be understood by practitioners, the importance of the two Parts is that they work together to provide for a much-needed improvement and enhancement of shareholder rights and remedies, thus upholding accountability in corporate governance.

Introduction: perspectives on work-life balance

Work-life balance has emerged as a major concern for researchers trying to map the dimensions and causes of the issue, for policy makers searching for uncontroversial solutions to the problem and for individuals trying to construct satisfying and productive lives. There is some agreement over the main contributors to the work-life balance 'problem': the increase in female participation in the workforce since the 1960s; changes to work from the mid-1970s, in particular greater work intensification, an increase in alternative work schedules away from the standard working week and the growth of casual jobs (particularly in Australia); and a de-differentiation of roles, which has contributed to greater spill-over between work and other roles.

These factors are embedded in economic, social and cultural changes that characterise the post-World War II development of late capitalism in the more developed economies. Each is itself the result of a set of complex processes of change. We do not attempt here to detail these changes in all their complexity but draw out those elements that are most important in attempting to understand the work-life issue in terms of causal forces, mediating support systems and the effects of work-life balance or 'imbalance' on individuals, households, communities and societies.

This issue of Labour and Industry brings together three papers that focus on different work-life balance issues as a result of differing causal forces, different configurations of work/life activities, varying outcomes and variations in terms of support available. In particular, the problem of work-life balance is examined through an analysis of change in attitudes to mothers working in Australia, a study of agency or labour hire, and a study of young professionals. These papers were first presented at the WorkTimes/LifeTimes Colloquium held in Geelong, Victoria in December 2004. The aim of this colloquium was to explore issues around working time and the impact that this has on other aspects of people's lives. Specialists in the area of working time, time use, employee relations, and work-family came together to share the results of their respective research areas and to debate the theoretical and policy implications of their findings.

Winners or losers? Work/life balance and temporary agency workers

This article focuses upon temporary' agency workers' capacity to balance work/life needs. Two extremes are identified within the Victorian temporary agency labour market. On the one hand, there are skilled temporary agency workers employed in areas of high demand accompanied by labour shortages. Nurses are one such group. At the other extreme, there are skilled and semi-skilled temporary agency workers who face a shortfall in demand for permanent, direct hire employees. Drawing upon a survey and focus groups of temporary agency workers, their potential for achieving a satisfactory work/life balance is assessed in relation to control over working time, income and employment security, and a narrow band of employment conditions. The findings differ substantially between the two groups of agency workers, contributing to significantly different perceptions of the personal benefits of working through a temporary employment agency.

Fatty acid metabolism in the freshwater fish Murray cod (Maccullochella peelii peelii) deduced by the whole-body fatty acid balance method

The whole-body fatty acid balance method was used to investigate the fatty acid metabolism in Murray cod (Maccullochella peelii peelii) fed diets containing canola (CO) or linseed oil (LO). Murray cod were able to elongate and desaturate both 18 : 2n − 6 and 18 : 3n − 3. In fish fed the CO diet, 54.4% of the 18 : 2n − 6 consumed was accumulated, 38.5% oxidized and 6.4% elongated and desaturated to higher homologs. Fish fed the LO diet accumulated 52.9%, oxidized 37% and elongated and desaturated 8.6% of the consumed 18 : 3n − 3. The overall roles of n − 6 fatty acids appeared more important in Murray cod compared to other freshwater species. Murray cod also showed a preferential order of utilization of C18 fatty acid for energy production (18 : 3n − 3 > 18 : 2n − 6 > 18 : 1n − 9). Moreover, it is demonstrated that an increase in dietary 18 : 3n − 3 is directly responsible of increased desaturase activity and augmented saturated fatty acid accumulation in the fish body. The present study also suggests that, in the context of the possible maximization of the natural ability of fish to produce long chain polyunsaturated fatty acids, the whole-body approach can be considered well suited and informative and Murray cod is a suited candidate to fish oil replacement for its diets.

Striking a balance between ethics and ICT governance

Ethics and Information Communication Technology (ICT) Governance both have their place in today’s business organisations, but can their practical applications present an ethical ambiguity for the IT professional employed within the business organisation? The guidelines contained within various codes of ethics recommend principles regarding the ethical behaviour of individual IT professionals. In contrast, IT Governance as outlined in the new Australian Standard for Corporate Governance of Information and Communication Technology (ICT) provides ICT governance advice for business. This paper explores the difference between these viewpoints.

Evaluation of SWAT for modelling the water balance of the Woady Yaloak River catchment, Victoria

Future land use change will have a profound effect on the water balance of agricultural and rural catchments in Australia. It is therefore imperative that any such consequences likely to arise from impending land use changes are predicted accurately so that strategies can be implemented to minimise or prevent undesirable impacts to the water balance of catchments. SWAT is a comprehensive hydrologic model developed to predict the impacts of land use change on water balance. SWAT has been applied in Australia but it has not yet been widely adopted. The application of SWAT to the Woady Yaloak River catchment in southwest Victoria is described in this paper. SWAT is being evaluated to determine whether it is suitable for modelling the water balance of catchments in the southwest region of Victoria and to determine if it could be adopted as a planning tool to manage land use change. The results achieved in this initial application of SWAT were very pleasing. However it is shown that the groundwater and tree growth components of the model are not entirely adequate. These shortcomings with SWAT affect its ability to accurately model the water balance of catchments in Australia. It is recommended that both these components be modified to improve model performance.