International Public Sector Accounting Standards Research Articles

The Impact of Different Determination of Intangible Fixed Assets in Accordance with CAS and IPSAS on Financial Statements

The paper deals with the determination of intangible assets of Czech public sector. On 15 January 2013, the International Public Sector Accounting Standards Board issued new standard IPSAS 31 - Intangible assets. This standard represents a very sophisticated construction of accounting axioms moving public sector much closer to the private sector. The aim of this paper is to identify and make subsequent comparison of methodological elements in the context of intangible assets according to CAS and IPSAS 31. Moreover the paper tries to show the share of intangible fixed assets to the total assets throughout every type of organization of public sector like regions, municipalities, government departments etc. to assess subsequently the extent of possible impacts on financial situation in case of transition of financial reporting to IPSAS.

Comparison of the perception of overt and covert options in IPSAS financial statements by intergovernmental organizations

Abstract Since 2012, the European Commission has embarked on the ambitious project to harmonize public sector accounting rules on all levels of government within Europe, mainly to improve the quality as well as the comparability of financial data. Although International Public Sector Accounting Standards were deemed not to be suitable for a simple take-over because of various reasons, they nevertheless shall function as a primary reference point for developing European Public Sector Accounting Standards. A total of 21 out of 28 central governments have already reformed their accounting standards to accrual accounting, and some of them have also relied on IPSAS in this exercise. Apart from governments, various international and supranational governmental organizations have also since the end of the 2000’s been reforming their accounting system to accrual accounting, and have in the same way relied on existing IPSAS. This paper explores accounting practices found in ten intergovernmental organizations (Commonwealth Secretariat, Council of Europe, European Commission, IAEA, INTERPOL, ITER, NAPMA, OECD, International Criminal Court, WFP) whose statements are prepared in compliance with IPSAS. It analyzes how overt and covert options contained in IPSAS with relevance to the activities of intergovernmental organizations are exercised and evaluates in which areas of accounting material differences in accounting practices can be found, which may hinder the comparability of financial statements prepared on the basis of IPSAS.

Adoption of International Public Sector Accounting Standards in Public Sector of Developing Economies -Analysis of Five South Asian Countries

We examined the extent of adoption of the International Public Sector Accounting Standards (IPSAS) in South Asia and the challenges that are decelerating this process. The moderating organization, International Public Sector Accounting Standards Board (IPSAB), instituted IPSAS in an effort to improve financial reporting by public sector organizations and for comparability purposes. The aims of this research were to establish to what extent the IPSAS has been adopted in South Asia and determine the drawbacks contributing to its slow adoption process. To answer the study questions a literature review of the South Asian countries that have adopted the IPSAS was conducted. The study findings show that most of the South Asian nations have adopted the IPSASs though to different extents. Nepal, Bangladesh, Pakistan and Sri Lanka have implemented the IPSAS but taking different approaches and directions, while India still uses the cash based accounting system. The key barriers include; lack of experienced staff, delay in provision of information by the public entities, and lack of a defined implementation timeframe which seem to cut across these countries.

IPSAS VS. NATIONAL GAAP: DIFFERENCES AND CHALLENGES IN IMPLEMENTING IPSAS IN ALBANIAN PUBLIC SECTOR

ABSTRACT The aim of this paper is to analyze the differences between International Public Sector Accounting Standards (IPSAS) and the Albanian Public Sector GAAP (Albanian PS GAAP). At the same time, the paper tries to emphasize the steps and the challenges of implementing IPSAS in Albanian context. The analyses are based on official information from strategic documents of the Government of Albania, as well as official reports form the international professional and financial institutions, such as: World Bank, IFAC, and OECD.

Problems of Harmonizing Investment Property Accounting Аccording to Russian and International Standards

The purpose of this article is to study the problems of convergence of investment property accounting in Russian and international financial reporting standards. The relevance of the question is due to the increasing role of such objects in the activities of Russian organizations. The research methodology includes the critical analysis of regulating modern investment property accounting in Russian and international financial reporting standards. This article uses such methods as analysis and synthesis, comparison, method of analogies, method of groupings, systems approach and logical approach. The study reveals discrepancies in the conceptual apparatus connected to investment property accounting; in various Russian regulatory documents; in interpretation of the notion of investment property in Russian GAAP and IFRS along with the differences in the investment property valuation methodology in Russian and international fi reporting standards.This article investigated the regulation of all Russian and International financial reporting standards subsystems. Russian accounting standards subsystems are the regulatory documents of organizations belonging to public and private sectors. The latter includes the normative documents of financial and nonfinancial organizations. When analyzing the regulatory documents on accounting in financial organizations the documents of credit and non-credit institutions were considered separately. As international standards subsystems were considered International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards for private sector. The authors give the critical analysis of the validity of the investment property accounting regulations in Russian and international financial reporting standards. The authors substantiate the prospects of the further convergence of the investment property accounting rules in Russian and international financial reporting standards.

Accounting for social benefits: The search for a past event

AbstractThe article explains the role of the International Public Sector Accounting Standards Board (IPSASB) in setting accounting standards for the public sector, and the due process that is followed in setting those standards. The article explains the scope of the IPSASB's current project on social benefits, and how this compares to the scope of social benefits in Government Finance Statistics (GFS)/System of National Accounts (SNA) as well as the IPSASB's previous social benefits projects. The scope is wider than pensions, and wider than social security as social assistance is also included. The accounting principles that underpin the IPSASB's current project are discussed and include the IPSASB's definition of a liability, and the key role that a “past event” plays in that definition. This is contrasted with some of the actuarial approaches. The article then describes the potential past events that the IPSASB has considered to date in the project, and what impact liabilities from these past events would have on the financial statements. This comparison makes reference to pensions, where the financial impact of different past events will be greatest. The article sets out the IPSASB's proposals in its recent Exposure Draft ED 63, Social Benefits, and also discusses alternative views on recognition and measurement. The article concludes by discussing the IPSASB's current guidance in RPG 1, Reporting on the Long‐Term Sustainability of an Entity's Finances, and notes that the IPSASB is seeking views on whether it should undertake further work in this area.

The Magic Shoes of IPSAS: Will They Fit Turkey?

In this study, we seek to further delineate the reasons for the existence of shortfalls in the level of formal and material harmonization regarding the accrual-based rules in International Public Sector Accounting Standards (IPSAS) by analyzing the law, the executive order and the Turkish Central Government Public Reports from2010to 2014 (using a mixed method approach).We highlight that coercive pressure itself is insufficient for improving substantive performance and changing the internal structures of organizations, instead, such pressures cause decoupling in financial reporting. As a new finding in the context of a developing country, we suggest that there are several discrepancies between the law and the executive order. Moreover, we conclude that there are emerging country-specific reasons affecting the gap in the harmonization levels, including a lack of social pressure which tends to be prominent in developed countries, state domination over both civic matters and the private sector, and translation problems that arise during the adoption process.

On certain development aspects of an ISPAS-based system-target approach to evaluation of net asset sustainability level

Problems of accounting and reporting of net assets and the procedure of their formation taking into account the specifics of the economic and legal status of property of a non-commercial autonomous institution are some of the most controversial in the accounting for entities of the public sector. The study focuses on justification of accounting rules for net assets of public sector entities. The methods used in the study are as follows: comparison, synthesis, analysis, logical approach, and system approach. The article examines legal aspects and specifics of recognition of assets of public sector entities in accordance with IPSAS standards (International Public Sector Accounting Standards are a set of accounting standards issued by IPSASB (Council for International Financial Reporting Standards for Public Sector Organizations) used by state-owned enterprises worldwide in preparation of financial statements as of the 31st of August, 2015. The most crucial factor in the modeling of key performance indicators of the system-target approach to estimation of the sustainability level of net assets on the basis of IPSAS is a multicriterial evaluation of the basic management strategy for quality system elements used in operational and strategic planning projects in construction operations. We offer an alternative evaluation of assets due to be returned to the right holder (the state controller) in the event of liquidation of a public sector entity.

HONESTY IN THE LEVEL OF INTERNAL CONTROL ON FINANCIAL REPORTING IN PUBLIC COMPANIES IN NIGERIA

This paper examined honesty in the level of internal control on financial reporting in public companies in Nigeria. It became necessary since no level of internal control is fraud free .Noticeably, public companies wine down shortly after establishment due to poor management of resources despite control measures in place. This leads to decline of public trust in accounting and reporting practices. It used a cross-sectional research design and guaranteed data through a modified 4-point likert scale questionnaire. Hypotheses formulated were tested using Z-test statistic at 5% level of significance. Among the findings were that employees (accountants) follow generally accepted accounting principles (GAAP) in reporting relevant accounting information. The audited financial statements conform to the generally Accepted Auditing principles (GAAP). Moreso, adoption and implementation of international financial reporting standard (IFRS) and international public sector accounting standard (IPSAS) have stake in comparability and reliability of financial statements. The implication is that honesty of accounting employees in the level of internal control was not compromised since it immensely improved business practices in terms of profitability, reliability and confidence of end users . It equally showed credibility and effective management functions in the firms. It therefore concludes that honesty and integrity remains vital in accounting as they bring trust. It is expected that honesty of financial reporters in financial reporting when adequately implemented in the sector will sanitize the irregularities.

Public Accounting Reporting, under an Achievable Metamorphosis?

This study aims to provide a holistic approach of the European Union (EU) fiscal and financial reporting systems by assessing them through European System of National Accounts (ESA 2010) and International Public Sector Accounting Standards (IPSAS) reference, both having the accrual basis as benchmark of governmental accounting. The empirical research performed by combining the cluster analysis with the multidimensional scaling technique enables us to map all EU member states and emphasize potential connections between their fiscal and financial systems, thus providing a visual image of the two facets of public accounting. The results reveal a wide and strong interest in sound reporting able to improve transparency through performance management systems. These support European Public Sector Accounting Standards project aimed to adjust inaccuracies between IPSAS and ESA 2010 and finally to enhance good governance and create a positive environment by facilitating transparency and comparability.

Accrual-Based International Public Sector Accounting Standards: Implementation Challenges Facing the Metropolitan, Municipal and District Assemblies in the Ashanti Region of Ghana

In recent times, the significance of Accrual-based Public Sector Accounting Standards (AIPSAS) in financial reporting is gaining momentum and current debates are moving in the trend of full AIPSAS reporting. Municipal, Metropolitan and District Assemblies (MMDAs) are not let off in this instance. The move to new reporting standards results in numerous challenges for diverse interest groups such accounting practitioners. The main objective of the study was to establish the AIPSAS implementation challenges facing MMDAs in the Ashanti region of Ghana. This quantitative study was conducted to gravely study the factors that could influence the implementation of AIPSAS. Purposive sampling procedure was used to select the departments whilst convenience sampling procedure was also used to select the sample size. A sample of 480 accounting practitioners was selected from all the 30 MMDAs in the Ashanti region of Ghana. Self administered questionnaire was used to gather data from the respondents. The Pearson correlation and multiple linear regression analysis were used to test the significance level of the AIPSAS implementation factors. The results of the hypotheses tested revealed that with the exception of cultural practices, the level of accounting education and training, different levels of costs and the existing laws have significant effects on the implementation of AIPSAS in the MMDAs in the Ashanti region of Ghana.

Progressive public administration and new public management in public sector accountancy

PurposeThis paper aims to evaluate responses to the International Public Sector Accounting Standards Board’s proposed conceptual framework for evidence of support of new public management doctrines by key stakeholders, namely, accounting professionals, government agencies and international bodies.Design/methodology/approachThe research uses a content analysis of response letters to select phases of the conceptual framework project to identify themes/principles pointing to acceptance or rejection of new public management principles by stakeholders.FindingsAccounting professionals tend to support proposals that are consistent with principles of new public management providing evidence of normative and mimetic isomorphic pressure to align public and private sector accounting practices. Some government agencies and international organisations appear to have conformed but the majority resist efforts to incorporate a new public management discourse in public sector accounting.Research limitations/implicationsThe study is based on a content analysis of publically available response letters. It does not engage directly with respondents. In addition, not all stakeholders have submitted an equal number of response letters, with the result that it was not possible to compare responses from the developed and developing world or according to variations in legal and governance systems.Originality/valueThe study provides empirical evidence of different perspectives of the International Public Sector Accounting Standards Board’s conceptual framework project, which have not been considered explicitly by the previous research. The findings support the view that the accounting profession, as an integral part of the capital market system, exerts pressure to drive standardisation of financialised accounting practices. In contrast, government agencies support accounting systems aligned with conventional accountability principles aligned with jurisdiction-specific contexts. The interaction of these opposing perspectives is a primary determinant of change in accounting practice in the public sector space.

Public Financial Management Reforms in Nigeria (Presentation Slides)

The Federal Government of Nigeria began public finance management reforms to address the challenges of transparency, accountability, corruption, and poor service delivery. There was a recognition that the country had not made much progress in its economic development efforts due to these challenges. Consequently in 2004, the country embarked on Economic Reforms and Governance Project (ERGP) sponsored by the World Bank to address the challenges. This has led to the introduction of Integrated Payroll and Personnel Information System (IPPIS), Government Integrated Financial Management Information System (GIFMIS), Treasury Single Account (TSA), E-Payment, and International Public Sector Accounting Standards (IPSAS). Some legislation has also been enacted in the areas of fiscal responsibility and public procurements. The implementation of these reforms is beginning to yield results. It, however, requires sustained political will, commitments, capacity enhancement, and funding for the county to reap the full benefits of these reforms.

Does IPSAS Meet Heritage Assets’ User Needs?

ABSTRACTPublic organizations need to custody and protect heritage assets. This article questions the appropriateness and quality of the unique International Public Sector Accounting Standards (IPSASs) in delivering financial reports that meet the user needs in regard to heritage assets. By refining the earlier findings in Italian local governments with data from a completely different region being Flanders, the results highlight that the IPSASs are lacking an important area of expectations from a relevant user need perspective, being the local ruling politicians. Finally, current article improves previous publication by examining the different kinds of responses in the light of certain municipal characteristics.List of abbreviationsIFRS: International Financial Reporting Standards IPSASs: International Public Sector Accounting Standards IPSASB: International Public Sector Accounting Standards Boards UNESCO: United Nations Educational, Scientific and Cultural Organization

The enabling role of institutional entrepreneurs in the adoption of IPSAS within a transitional economy: The case of Estonia

SummaryIn the light of neoinstitutional theory and by adopting case study research methodology, this article explains the adoption of International Public Sector Accounting Standards for modernizing public sector accounting in Estonia. This article reveals that the smooth—yet gradual—adoption of International Public Sector Accounting Standards‐compliant accounting systems was enabled by the involvement of powerful actors (i.e., institutional entrepreneurs) with foreign and/or business backgrounds. In addition, the change in public sector accounting in Estonia was facilitated by the developments in its international positioning, characterized by the transition from a Soviet communist to a market economy and subsequent European Union membership and by the absence of past accounting practices, which could potentially hinder the change.

International Public Sector Accounting Standard (IPSAS) in Nigeria as a Correlate to Transparency and Accountability

International Public Sector Accounting Standard (IPSAS) is the version of International Financial Reporting Standardfor meetingcomplex challenges of modern financial reporting. (This is in terms of coherency, consistency, uniformity, internationalization, and clarity in the preparation and reporting standard for public sector financial information. This study is empirical and seeks to determine the correlation between IPSAS implementation and transparency and Accountability in the Nigeria Public sector. A positive correlation will be in consonance with the Accounting theory of fair reporting of the socio-economic position and performance of practicing organizations. Conclusion can be that transparency and Accountability are being embraced. Consequently, such result justifies the Direct Benefit Theory for instance that direct capital inflow into Nigeria from other IPSAS practicing countries is being facilitated. A hypothesis on the relationship between IPSAS implementation and Transparency and Accountability was formulated. The Central Bank of Nigeria and the Auditor General of the Federation’s offices from which 100, and 50 staff randomly selected provided useful information. Primary and secondary data utilized were utilized for this study. Simple percentages were used for ratings in the analysis of data. The hypothesis was tested through the Product – Moment Correlation. Out of 150 respondents, 102 (or 68%) posited that there is a high correlation between IPSAS implementation and transparency and accountability in IPSAS practicing organizations. Correlation coefficient, r of 0.20 (or 20%) obtained implies a Linear relationship. The null hypothesis of no correlation between IPSAS implementation and transparency and accountability was rejected, while the alternative hypothesis was accepted. Conclusion was that 20% coefficient shows a weak correlation implying the need for complementary independent variables (like increased regulatory framework) as transparency and accountability re-enforcements. It is recommended that more regulatory framework be promoted.

Zawartość informacyjna sprawozdań finansowych jednostek sektora finansów publicznych

In the majority of countries, the finance sector constitutes one of the most important parts of the economy. Public finance sector units often raise funds and spend them on non-profitable activities, however essential they may be for the proper functioning of society. The cash participating in these operations make up a significant share of the transfers of a country’s entire economy. Thus, public finance sector units are required to keep books of account based on the provisions of the Accounting Act and specific legislation adapted to the specificities of the public finance sector. One of the obligations laid down by the Accounting Act is to present financial and property standing in the form of financial statements. As far as public finance sector units are concerned, the obligation has been extended to include preparation of budget reports, the main aim of which is to present a unit’s current situation with respect to its budget revenues and expenditures. The budget reporting system is currently used in the financial management of public finance sector units mainly in the short term. Financial statements, which may be the subject of financial analysis and support long-term decision making, have rarely been used. The paper presents financial reporting of public finance sector units, the possibilities of using the International Public Sector Accounting Standards (IPSAS) in accounting, and certain aspects of financial analysis and its use.

Національні та міжнародні стандарти обліку для державного сектору: особливості застосування

Національні та міжнародні стандарти обліку для державного сектору: особливості застосування

Statističko izveštavanje budžetskih korisnika

Direct and indirect users of budget funds are obliged to report during the financial year on the use of approved funds for the realization of their activities. Legislation and by-laws regulate the manner of submitting data on the implementation of the budget. In addition to the aforementioned regulations, budget users are obliged to comply with the provisions of the International Public Sector Accounting Standards (IPSAS) when drafting and publishing financial statements. Based on data provided by all budget users, a unique 'Complex Annual Report for Budget Users' is created. This report presents the initial information on budget users for the creation of statistical reports at the state level and statistical indicators of the state sector's operations in the total macroeconomic accounts and the most important macroeconomic aggregates for the Republic of Serbia.

On certain development aspects of an ipsas-based system-target approach to evaluation of net asset sustainability level projects in high-rise construction

Problems of accounting and reporting of net assets and the procedure of their formation taking into account the specifics of the economic and legal status of property of a non-commercial autonomous institution are some of the most controversial in the accounting for entities of the public sector. The study focuses on justification of accounting rules for net assets of public sector entities. The methods used in the study are as follows: comparison, synthesis, analysis, logical approach, and system approach. The article examines legal aspects and specifics of recognition of assets of public sector entities in accordance with IPSAS standards (International Public Sector Accounting Standards are a set of accounting standards issued by IPSASB (Council for International Financial Reporting Standards for Public Sector Organizations) used by state-owned enterprises worldwide in preparation of financial statements as of the 31st of August, 2015. The most crucial factor in the modeling of key performance indicators of the system-target approach to estimation of the sustainability level of net assets on the basis of IPSAS is a multicriterial evaluation of the basic management strategy for quality system elements used in operational and strategic planning projects operations in high-rise construction. We offer an alternative evaluation of assets due to be returned to the right holder (the state controller) in the event of liquidation of a public sector entity.