Chile's quantitative analysis of contingent liabilities also leads to extensive reporting, but perhaps the most interesting additional issue raised by the practices of the three countries under the heading of reporting is Australia's adoption of modern accrual accounting.
Modern accrual accounting generates useful information about PPPs and helps reduce the incentive to use them for fiscal disguise. In some countries, annual financial reports are more powerful than ad hoc reports because they are used for other purposes as well, and the government cannot decide simply to stop preparing the reports when they become inconvenient.
Yet introducing accrual accounting is a major reform, the merits of which depend on many factors other than its effect on a PPP program. Governments that struggle to perform very basic tasks have more important things to do than to introduce accrual accounting. Even South Africa, which has a competent public sector and many accountants well versed in IFRS, is not rushing to adopt modern accrual accounting.
The use of cash accounting does, however, make governments more susceptible to the temptation to use PPPs irrespective of their real benefits. To try to resist that temptation, governments with cash accounting can routinely publishing estimates of their liabilities that include PPP-related claims alongside ordinary debt. South African government agencies' disclosure notes on PPP and Chile's report on public finances and report on contingent liabilities are examples of what is possible.
Lastly, publishing PPP contracts, as in Australia, is an easy way of showing that there is nothing to hide. And any government with a website can follow such a practice.