Public Sector Accounting Research Articles

Public Sector Audit, Transparency and Good Governance on Financial Accountability of Public Sector Entities in Rivers State, Nigeria

This study investigated the effects of public sector audit, good governance and financial transparency on financial accountability of twenty – six (26) ministries in the Rivers State Civil Service. The study employed cross sectional survey research design. The population consisted of twenty – eight ministries and the Taro Yamene model was used for sample size determination while simple random sampling was employed. The study used primary and secondary sources of data collection. Questionnaire was the primary source of data collections after the application of content and face validity while Cronbach alpha was employed to test the reliability of the instrument. The dependent variable was financial accountability index while the independent variables consisted of financial audit index, performance audit index, compliance audit index, good governance index and financial transparency index. The responses obtained from the questionnaire were analysed with univariate, bivariate and multivariate analysis. The multiple regression analysis suggested that there is a positive and significant relationship between financial audit index, performance audit index, compliance audit index, good governance index and financial transparency index on accountability in public sectors in Rivers State. The study concluded that public sector audit, good governance and financial transparency promote financial accountability in the Nigerian public sector. Therefore, the following recommendations were provided amongst others that The Accounting Officers in government Ministries, Department and Agencies (MDA) should carry out government business in accordance with accountability, transparency, effectiveness and efficiency, responsiveness, forward vision and rule of law for the welfare of the citizens.

Gender budgeting in public financial management: a literature review and research agenda

Gender budgeting calls for including a gender perspective at all levels of governmental budgetary processes. While the literature on gender budgeting is interdisciplinary and covers a wide geographical range, it remains fragmented. This study uses a literature review to examine the current discourse on gender budgeting and to elicit avenues for future research. Our review shows that studies focus either on emerging economies, such as India or South Africa, or on countries in Europe. Drawing on an analytical framework, we find that most studies scrutinize the ex ante stages of gender budgeting, whereas less is known about the concurrent and ex post stages. Moreover, because little is known about the outcome and impact of gender budgeting, governments do not know what instruments function best in different settings. Given their ex ante focus, most studies on gender budgeting often either remain descriptive or analyse secondary data. Despite scholars from different disciplines contributing to the field of gender budgeting, several ‘blank spots’ remain, particularly in public sector accounting. Points for practitioners While current gender budgeting projects tend to focus on the ex ante stage of gender budgeting, future practitioner attention needs to focus on the equally important concurrent and ex post stages, which have received less attention thus far. An increasing number of governments worldwide are implementing gender budgeting projects. Governments need to evaluate the outcome and impact of these projects in a timely fashion, aiming at reducing structural inequalities related to gender. Gender budgeting is willingly adopted in times of prosperity and stability or when the scope of projects appears manageable. To avoid negative impacts on their achievements, policy makers need to put gender budgeting on the political agenda and institutionalize it in times of instability and crisis.

Higher education in the IPSAS implementation process: A comparative study between Brazil and Mexico

The Brazil and Mexico started their International Public Sector Accounting Standards (IPSAS) IPSAS adoption strategies in 2008 and consider the importance of the accountant role in this process and the existence of specific undergraduate Accounting programmes in the two countries. This study aims to compare the offer of courses about public sector accounting in public institutions of higher education in these countries during year 2018 & 2019, under Institutional Theory perspective. The methodology of this article consists of a documentary analysis of the curricula in force of website of the Public Institutions of Higher Education (PIHE) of each federative entity of Brazil and Mexico. The results show great diversity in the offer of disciplines among the 76 Brazilian and in the 39 Mexican institutions, with an average of only 3 and 1,3 courses by each country respectively. In Brazil, every institution has at least one mandatory Public Sector Accounting discipline, whilst only 28 Mexican institutions offer as obligatory. If institutional legitimacy consider education in Mexican and Brazilian IPSAS adoption strategies, the diffusion of IPSAS accrual accounting information will account for a huge network of more than 1000 of people involved. Furthermore, it highlights the weakness of the public sector approach to develop professional skills (normative isomorphism) in line with emerging trends in Public Sector Accounting for transparency. This article contributes to show what has been considered from the perspective of higher education of future public sector accounting professionals aligned with the IPSAS adoption strategies that involve Brazil and Mexico.

Call for Proposals of Articles for a Special Issue of Public Organization Review (POR) on Public Sector Accountability and Corruption Problems SI #4

Call for Proposals of Articles for a Special Issue of Public Organization Review (POR) on Public Sector Accountability and Corruption Problems SI #4

Big Town Hydro: An Accounting Choice Case*

ABSTRACTThis fictional case is based on the real‐world events when a Canadian public electric utility company adopted IFRS. Many of these firms previously used US GAAP. In this context, the case gives students the opportunity to research key differences between IFRS and US GAAP relevant to utility industries, discuss the impact of IFRS standards on a firm's performance, and make recommendations on important business decisions. Specifically, this case exposes students to (i) the rate‐regulated electric utility industry and complex regulatory deferral accounts; (ii) the impact of IFRS adoption on key financial ratios and bond issuance decisions; and (iii) a what‐if analysis in making business decisions under the new IFRS 16 standard. This case is suitable for use in undergraduate or graduate intermediate level financial accounting courses. It can also be explored in an advanced level or public sector accounting class.

Financial Control Practices and Accountability in the Public Sector in Nigeria

The Nigerian government has for a long time recognized problems relating to mismanagement of public funds evidenced by lack of transparency, poor accountability, corruption, financial leakages and budgeting processes, financial excesses, poor cash management and resource allocation. This is coupled with the fact that there is a near total absence of the notion and ethics of accountability in the conduct of public activities in the country. This study investigates the effects of financial control practices on accountability in Nigeria public sector. This is due to dearth of literature in this area of study. The cross-sectional survey research design was employed, the data were primarily sourced by means of a questionnaire (research instrument) and empirically analyzed. The target population of this study was the staff (2,125) of public/civil servants working in the Accounts and Finance departments of Lagos and Ogun States government Secretariats, Taro Yaman was adopted to arrive at 337 sample size. Data were analyzed using the SPSS 20.0 version software, inferences were made at 5% significant level. The study showed that financial control has a significant influence on accountability of public sector (Adj. R2= 0.468, F(4, 349) = 77.692, P< 0.05). Based on this finding, the concluded that there is significant effect of financial control practices on accountability in the public sector. The study also established that financial control has a significant influence on responsibility of public sector (Adj. R2= 0.141, F(4, 349) = 15.296, P< 0.05). Therefore the study concluded that there is significant effect of financial control practices on responsibility of public sector accountability. The study therefore, concludes that there is a positive significant effect between financial control practices and accountability in public sector. Based on the findings of this study the study recommends that: The existing physical control assets should be strengthened in order to ensure effective financial control and improve on accountability thereafter due to the insignificant effect of physical control of assets has on accountability in public sector. Effective and efficient application of financial control methods and management strategies to accountability in the public sectors will compel each employee to be more serious, focused and loyal in the discharge of their responsibilities.

Debate: Growing the academic voice in IPSASB’s work

The academic voice has been a strong input to the development of International Public Sector Accounting Standards (IPSAS) ever since this started under the International Federation of Accountants (...

Political Leadership and Public Accountability in Post-colonial Nigeria

In the quest for transparency and accountability in the public sector, several political administrations have initiated public sector reforms to promote accountability and transparency in Nigeria. The paper investigates the impact of political leadership on political accountability and fiscal accountability in Nigeria. It also explains why the problem of lack of accountability has thrived despite the numerous reforms which have been introduced to abate it. Anchored in a documentary/historical research design, the paper observed that the problem of lack of accountability thrives because of legal lapses, weakness of civil society organizations, political patronage and the principle of possessive individualism/primitive capital accumulation that holds the country’s elites are embroiled in. The paper recommends policy learning, adherence to the principles of the constitution and constitutionalism, civil society advocacy, and recall to engender accountability in the Nigerian public sector.

Pengaruh Hasil Belajar Matematika terhadap Hasil Belajar Akuntansi pada Mahasiswa Jurusan Akuntansi Politeknik Negeri Banjarmasin.

There are several similarities between mathematics and accounting, which both emphasize the use of logic, use symbols, and have definite formulas. In general, if a student has good math skills, chances are that his accounting skills are also good. Therefore, the researcher wanted to know whether there was an effect of mathematics learning outcomes on accounting learning outcomes for students of the Accounting Department at the Banjarmasin State Polytechnic. For testing the hypothesis, the researchers took the final grade data for mathematics courses in the first semester and the average final grade data from several accounting-based courses in the following semesters such as Intermediate Financial Accounting, Cost Accounting, Accounting Information Systems, Public Sector Accounting. , and Introduction to Accounting Practices. After the data is tested for normality, a correlation coefficient test, a coefficient of determination test, and a simple linear regression test were conducted. The test results indicate that there is a strong influence between the learning outcomes of mathematics courses on the learning outcomes of several accounting courses for students of the Accounting Department of the Banjarmasin State Polytechnic. The average learning outcomes of several accounting courses are influenced by 47.66% by learning outcomes of mathematics courses while the remaining 52.34% is influenced by other variables.

The Development of Public Sector Accounting in Indonesia – A Bibliography Study

This study aims to provide an overview related to the development of public sector accounting research in Indonesia. The method used in this study is charting the field. Samples taken came from 11 journals in Indonesia and obtained 20 articles during 2010-2020. The results of this study indicate that the topic most widely used in public sector accounting research is the topic of agency performance and control systems. The topic of government agencies' performance in the public sector is the most researched topic because the government in Indonesia in managing public financial reports is still a special concern of the public. Meanwhile the least research topic is the topic of the accounting system.

Measurement of payments to personnel in the Russian and International accounting of state institutions

Relatively recently, the Ministry of Finance of the Russian Federation approved the Federal Public Finance Accounting Standard “Payments to personnel” (hereinafter — FPFAS PP). This standard contains rules for measurement of payments to personnel of public institutions, including health care institutions. Due to the fact that the FPFAS PP has been applied since this year, it is currently especially important to explore the above rules in detail. At the same time, in view of the fact that when improving the Russian accounting of state institutions, the regulation of International Public Sector Accounting Standards (hereinafter referred to as IPSASB) continues to be taken into account, it is also relevant to analyze the relevant international regulations on the measurement of payments to personnel and determine their relationship with the requirements of the domestic FPFAS PP. This article is devoted to the research of the above issues. During the research, the following methods were used: analysis and synthesis, comparison, grouping method, analogy method, logical approach, and systematic approach. As a result of the research carried out, the article focuses on the fundamental issues of measurement of payments to personnel in the Russian and International accounting of state institutions (including health care institutions), carried out their comparative analysis and identified the possibilities of improving the domestic rules for measurement of payments to personnel.

Access Digital Divide in the Kingdom of Saudi Arabia (KSA): Current State and Measures for Improvement

In this age the emergence of information and communication technologies (ICTs) has been identified as a major step toward solve the problems challenged the nation development. Problems such as corruption, delays in service delivery, lack of public sector accountability can be overcome with ICT. Furthermore, ICT are the key factors in improving government business and human sustainable development in all life aspects. Whilst the ICT considered the key to these problems but owning these technologies was facing many obstacles staring from bought them to continuous use, and create a gap between countries and within a country from the perspective of who does have computer and networks communication and who doesn't, and this refers to the digital divide. Some aspects of the digital divide exist everywhere and not only related to developing countries but also the size of the gap, which is different in countries and within a single community. This study focuses on the digital divide problem by exploring the current state of the access digital divide in Kingdom of Saudi Arabia (KSA) based on three main research questions. And to achieve that, Data collected from International Telecommunication Union (ITU), Communications and Information Technology Commission (CITC), and World Bank were used. The study found that Saudi Arabia is suffering from the access digital divide, and there is a strong link between household income and the access digital divide resulting from unaffordable prices in both ICT and broadband services and this gap tends to be larger in the regions where the inhabitants have the lowest income level. The study recommends that the government should give improving household income the highest priorities and at the same time offering affordable prices for broadband services. Also, the study finds that mobile penetration represents a valuable resource for the Saudi Arabia government to be investing in delivering government services through mobile platforms. Finally, the study recommends that public-private partnerships with promoting and encouraging the private sectors to invest in ICT is one of the most important measurements in bridging the access digital divide.

Revisiting International Public Sector Accounting Standards Adoption in Developing Countries

ABSTRACT Based on a comprehensive review of recent studies on IPSAS adoption around the globe, we develop in this article a conceptual model to examine alternative predictors of adoption for developing countries. Drawing from this framework, we develop a rigorous econometric modelling on the impact of legal, political and accounting environments in the developing countries’ drive for IPSAS adoption. Contrary to what existing literature projects, our study reveals that a country’s IFRS and ISA experience is more important and significant drivers of IPSAS adoption compared to IFRS adoption. Likewise, political system, regulatory enforcement, lenders and borrowers’ rights and the level of corruption in a country also influence IPSAS adoption.

Public sector accounting in emerging economies: a review of the papers published in the first decade of Journal of Accounting in Emerging Economies

PurposeA review of papers on public sector accounting in emerging economies, as published in the Journal of Accounting in Emerging Economies' (JAEE) first decade.Design/methodology/approachA reflection on the issues covered and achievements made in the reviewed papers in the context of extant knowledge in this domain.FindingsA majority of the research in JAEE is dominated by accounting reforms inspired by New Public Management (NPM). Performance management, budgeting and accrual accounting are the main topics in the reviewed research. NPM claims, which can range from usability and use of a new accounting repertoire to desirable impacts on efficiency and service delivery, are often not fulfilled. Many papers attempt to explain failing accounting innovations by the local context in which they are embedded, including political instability, poor governance and a lack of capabilities.Research limitations/implicationsThe paper reviews research in a niche journal, but the findings are related to wider public sector accounting literature.Practical implicationsPublic sector practitioners, but also researchers, need to move away from a focus on public sector reforms due to contextual circumstances leading to built-in failures and concentrate instead on understanding how the accounting repertoire works in practice, including routes for improvements therein.Originality/valueAn original framework for analysing public sector accounting research in emerging economies is proposed, which, among others, distinguishes between various ambition levels for achieving NPM reforms.

New developments in institutional research on performance measurement and management in the public sector

PurposeThis paper reviews and reflects on institutional research on performance measurement and management (PMM) in the public sector emerging over the past decade and discusses potential extensions of this body of research.Design/methodology/approachThe paper takes the form of a reflective review with an emphasis on how institutional theory has been used in PMM research in the public sector.FindingsAlthough institutional research on PMM in the public sector has continued to grow over the past decade, much of this research still pays relatively one-sided attention to the influence of pre-existing institutions on PMM practices and has left the constitutive effects of such practices under-researched. In order to address this shortcoming and nurture research that pays more equal attention to the institutional effects on and of PMM practices, a research agenda based on dialogue with the sociology of valuation and valuation studies is outlined. Such research is arguably well-suited for examining emerging themes in the public sector accounting and management literatures centred on the publicness of public service provision and notions of organisational hybridity.Research limitations/implicationsThe paper offers a starting point for research that can provide a more holistic and dynamic perspective on how PMM practices are implicated in the shaping of institutional fields over time.Originality/valueThe paper continues to advance an established research agenda in the public sector accounting and management literatures whilst suggesting ways of extending this research agenda.

국제공공부문회계기준의 수익, 비용인식에 관한 연구

국제공공부문회계기준위원회(IPSASB)는 국제회계기준(IFRS)과의 정합성을 높이면서 고품질의 회 계기준을 제정하는 것을 목표로 국제공공부문회계기준(IPSAS)을 개선하고 있다. 본 연구는 IPSAS 70~72의 공개초안(ED)이 지방자치단체의 회계기준에 미치는 영향을 분석하였다. 해당 공개 초안의 특징은 교환 또는 비교환을 기반으로 수익을 분류하는 현재 수익 인식기준과 달리 거래에 수행의무가 포함되어 있는지에 초점을 두고 수익을 분류하는 것이다. ED 70 ‘수행의무가 있는 수익’은 최종 수혜자가 제3자인 경우를 포함하여 수행의무가 포함된 일반 공공부문 거래를 처리하기 위해 해당 기준의 수익 인식을 확장한 것으로써 IFRS 15와 정합성을 높이 면서 종전 IPSAS 9, IPSAS 11의 교환수익 기준을 개선하였다. 또한, ED 71 ‘수행의무가 없는 수익’ 은 기존의 IPSAS 23 ‘비교환거래로 인한 수익’을 개정하였으나 종전 비교환거래 인식기준과 유의한 차이점은 없다. 다만, 수익거래 발생 시 ED 70, ED 71 적용여부를 구분하기 위해서 교환-비교환 접 근법을 벗어나 수행의무 접근법을 적용하였다는 차이점만 있다. ED 72는 이전비용을 수행의무 유무로 구분하며 재화나 용역을 제3자 수혜자에게 이전해야 하는 수행의무만 ED 72의 범위에 해당된다. ED 70~71의 수익인식기준은 특히 지방자치단체에 영향을 미칠 수 있다. 이는 중앙정부로부터의 이전수익이 많기 때문이다. 따라서 ED 적용 시에는 단순히 징수결의 및 수납처리 시 수익 인식하는 것 이 아니라 수행의무와 현재의무를 분석하는 절차가 추가되어야 한다. 또한, 중앙정부의 이전비용이 전 체 지출에서 차지하는 비중도 높지만, 이전비용이 예산집행률에 왜곡을 많이 발생시키며, 발생주의 회 계에서 이를 정확히 알려주려는 노력이 필요하므로 ED 72의 이전비용에 대한 고찰이 필요하다.

Implementation of the international public sector accounting standards in Europe. Variations on a global theme

ABSTRACT As part of introducing accrual accounting in the public sector, many governments have – voluntarily – implemented the International Public Sector Accounting Standards (IPSAS) for financial reporting. Amongst other claimed benefits, IPSAS have been argued to facilitate comparison of adopters’ financial reports and to lead to favourable conditions on credit markets. However, governments that are confronted with the implementation decision face a trade-off between unaltered adoption, partial adoption, adaptation and non-adoption of standards. Drawing on insights from the literature on standardization and practice variation, this paper analyses the reasons, expressed by various actors from nine European countries, for deviating from implementing unaltered IPSAS and proposes a taxonomy of these reasons. The results show that, first, substantial deviations exist, and second, there is a plethora of reasons for them. These deviations are presented and then structured in the further course of the paper. As a consequence of deviations, achieving comparability as the central aim of standardization runs the risk of being undermined.

Natural Capital Accounting in Accordance with Public Sector Accounting Reforms

Faithful information reporting on natural resources is essential for the formation of macroeconomic indicators, including such an important socio-economic indicator as domestic wealth. The new Federal Accounting Standard of Government Finance on Non-Production Assets, which became law on January 1, 2021, establishes uniform requirements for accounting and disclosure of information on natural resources in financial statements. The article considers the requirements for natural resources accounting, including their estimation in accordance with the new federal standard. The article reveals some theoretical and methodological problems of natural resources accounting and makes proposals for its further improving in public sector organizations. The article proposes a non-produced assets classification on the basis of their form — tangible and intangible non-produced assets. The author also suggests using the key rate of the Bank of Russia for discounting when determining a fair value of natural resources in an inactive market or in its absence.

The impact of IPSAS adoption on corruption in developing countries

AbstractThis paper investigates whether the International Public Sector Accounting Standards (IPSAS) is a potential enabler or constrainer of corruption in developing countries. We employ the System Generalised Method of Moments on a sample of 77 developing countries between 2005 and 2017. We find that IPSAS is negatively and significantly associated with corruption, suggesting that the adoption of IPSAS helps in controlling corruption in developing countries. The results still hold after accounting for IPSAS experience and the adoption of other international accounting standards. However, in further analyses, we find that negative impact of IPSAS on corruption is more pronounced for countries that have fully adopted the accrual‐based IPSAS. This study, therefore, provides evidence to policymakers on why developing countries should adopt IPSAS, especially in the fight against corruption.

Does IPSAS adoption reduce corruption’s level? New evidence from ODA beneficiary countries

PurposeThe accounting literature suggests that the use of accounting standards with greater quality promotes the financial reporting quality and enhances accountability. This study aims to investigate the effect of the International Public Sector Accounting Standards (IPSAS) adoption, by official development assistance (ODA) beneficiary countries, on the reported level of their perceived corruption.Design/methodology/approachWe investigate a sample of ODA beneficiary countries (168 country-year observations) facing rising levels of corruption. We apply a panel regression analysis for these countries during the period from 2015 to 2018.FindingsThe findings suggest that the IPSAS’ adoption can significantly influence the level of perceived corruption and implement important evidence about promoting transparency factor for underdeveloped countries.Originality/valueThis study contributes to the accounting literature by examining the theoretical and empirical insights about the impact of the of IPSAS’ adoption on the level of corruption, which can be considered as a new area of accounting literature and a useful signal for stakeholders in countries seeking adequate solutions to combat and fight corruption activities.