Australia isn't that badly off - at least the governments have to do accrual accounting. Most countries don't, because it's too much work. As a consequence, wh

Australia isn't that badly off - at least the governments have to do accrual accounting. Most countries don't, because it's too much work. As a consequence, when most countries release their budgets, expenses can be hidden for the next guy to reveal. And lazy assets don't burn a whole in spending. Imagine if the US government had to admit how much it was "spending" on rent (taking up land which could otherwise be used by the private sector). A $20,000 router isn't an "investment", it's a burn of $4,000 a year over the 5 years it's in use. The reason accrual accounting is used in large companies is, when ownership and management is separated, you need to ensure the managers give an accurate picture of what they have spent.