Key success factors in implementing international public sector accounting standards

Ayman Ahmad Abu Haija,Alaa Mohammad Alqudah,Mohammad Jamal Azzam,Laith Abdallah Aryan

doi:10.5267/j.ac.2020.9.012

Ayman Ahmad Abu Haija, Alaa Mohammad Alqudah + Show 2 more

Open Access

https://doi.org/10.5267/j.ac.2020.9.012

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Journal: Accounting	Publication Date: Jan 1, 2021
Citations: 5	License type: cc-by

Affiliation: Yarmouk University, Ajloun National University

Abstract

There is a worldwide debate regarding the implementation of IPSAS due to the potential obstacles that may face governments when they start moving to the full accrual basis. Of equal importance is that each country has its own needs and thus it must be examined separately to find out the factors that may motivate or limit the effective adoption of IPSAS. This study, therefore, aims to explore the key success factors when it comes to adopting IPSAS in Jordan. A 39-item questionnaire was devised and sent to 500 employees who were working in public entity departments. Only 326 questionnaires were returned, yielding a response rate of 65.2%. The results suggested that the most important factors were local legislation and the infrastructure, while the training of staff came at the bottom of list. These results are important to regulators for drawing up a clear road map for transferring fully to IPSAS.

Highlights

IntroductionJordan began adopting wide economic reforms two decades ago, prompted by unprecedented budget deficits and a high unemployment rate
The International Public Sector Accounting Standards Board (IPSASB) highlighted the importance of moving toward full accrual basis IPSAS and claimed that it would enhance the usefulness of financial reporting and the decision-making process for all related parties in terms of doing business with public entities (Fahmid et al, 2019)
The results show that local legislation is the most important variable (b= 0.556 p >.001) and related positively to the implementation of IPSAS

Summary

Introduction

Jordan began adopting wide economic reforms two decades ago, prompted by unprecedented budget deficits and a high unemployment rate. The International Public Sector Accounting Standards Board (IPSASB) highlighted the importance of moving toward full accrual basis IPSAS and claimed that it would enhance the usefulness of financial reporting and the decision-making process for all related parties in terms of doing business with public entities (Fahmid et al, 2019). They added that the accrual basis was better than the cash or modified cash basis in terms of providing information regarding financing decisions.

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