Abstract
Abstract This study aims to explore government accrual-based IPSAS implementation level measurements and to test the measures associated with central government fiscal transparency. Performing content analysis and Confirmatory Factor Analysis (CFA) on a sample covering 77 countries from 2008 to 2015, measurement indicates the relative importance and significance of financial performance statements and accrual accounting policies, such as non-exchanged and exchanged transactions as accrual level constructors. Conducting panel data regression, we find that accrual level scores meet the requirements of the external validity test, as indicated by their positive association with the International Budget Initiative’s (IBP) fiscal transparency index. The evidence suggests that central governments should strategically implement accrual-based IPSAS. Accrual practices (implicitly or explicitly) based on IPSAS strengthen fiscal transparency when it prioritises developing accrual accounting policies substantially rather than accrual commitment and the completeness of reports.
Highlights
Good public governance principles have become a foundation used by several countries to reform their public administration
Based on the guidelines for fiscal transparency provided by prominent international organizations – such as the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), the International Organization of Supreme Audit Institutions (INTOSAI), and the World Bank – the International Budget Partnership (IBP) documented that more than 22% of around 100 central governments surveyed had sufficient fiscal transparency (IBP, 2015)
This study aims to explore accrual-based IPSAS implementation level measurement and test the measures associated with central government fiscal transparency by extending or contributing previous studies in three aspects
Summary
Good public governance principles have become a foundation used by several countries to reform their public administration. Enhancement of accountability, transparency, efficiency, effectiveness, responsiveness, and the rule of law are the key objectives for government to successfully deliver public desires (Organisation for Economic Co-operation and Development [OECD], 2011). Government responses have been to increase their public financial, or fiscal, transparency by reforming their Public Financial Management (PFM) practices (Martí & Kasperskaya, 2015). Based on the guidelines for fiscal transparency provided by prominent international organizations – such as the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), the International Organization of Supreme Audit Institutions (INTOSAI), and the World Bank – the International Budget Partnership (IBP) documented that more than 22% of around 100 central governments surveyed had sufficient fiscal transparency (IBP, 2015). Using statistical reports as a fiscal transparency measurement, Wang, Irwin, and Murara (2015) demonstrated a positive trend in the availability of Government Finance Statistics (GFS) in OECD countries
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