Public Sector Accounting Standards Research Articles

Collective institutional entrepreneurship for the EPSAS programme: The missing link

IMPACT Three categories of institutional entrepreneurs are potentially capable of accomplishing multi-level accounting change processes, such as the issuing of European Public Sector Accounting Standards (EPSAS): the supranational, national and subnational. This article shows that, if the mediating role of national institutional entrepreneurs at the interface between supranational and subnational institutional entrepreneurs is limited, international accounting harmonization halts. The lessons in this article will be of particular value to accounting standard-setters and policy-makers in the field of public sector accounting.

The Ramifications of International Public Sector Accounting Standards on Public Financial Reporting in Ghana

The Ramifications of International Public Sector Accounting Standards on Public Financial Reporting in Ghana

Compliance With the International Public Sector Accounting Standards Relating to Disclosure in Algeria

The present study aims at the highlighting of the disclosure standards in the international public sector accounting standards (IPSAS) as well as the implementation extent in the public accounting system in Algeria through the 18/15 organic law relating to the financial laws, in particular. In addition to that is the highlighting of a number of disclosure standards in international accounting, in general. The study adopted a descriptive, analytical approach to the disclosure standards relating to the public sector. The findings indicated that a number of disclosure standards relating to the public sector are implemented at 60%, which is a significant percentage that significantly contributes to the public sector modernization as well as the establishment of an effective, modern accounting system based on and mirrors transparency.

International Public Sector Accounting Standards Adoption and Challenges of Implementation in Nigeria

International Public Sector Accounting Standards Adoption and Challenges of Implementation in Nigeria

Exploring the effect of International Public Sector Accounting Standards adoption on national resource allocation efficiency in developing countries

International capital providers such as the World Bank suggest that inefficient resource allocation in developing countries remains a major challenge for borrowing countries. Therefore, the purpose of this study is to examine whether the adoption of International Public Sector Accounting Standards (IPSAS) improves the resource allocation efficiency of developing countries. A robust econometric modeling including fixed effect and Two-Step Generalized Method of Moments is employed on a sample of 64 developing countries between 2005 and 2021. The results are not sensitive to potential endogeneity issues. The findings indicate that the IPSAS coefficient is significantly and positively correlated at a 5% level or higher. This suggests a strong and significant relationship between IPSAS adoption and resource allocation, indicating that using IPSAS improves efficient resource allocation. Additionally, the resource allocation coefficient is positive and highly significant at a 5% level or higher. These results are particularly notable in countries with low bureaucratic quality, suggesting that IPSAS adoption strengthens policies and regulations in the public sector’s financial structure, ultimately leading to more efficient resource allocation. Therefore, these findings imply that adopting IPSAS is crucial for developing countries to ensure efficient resource allocation and attract international capital providers.

Assessing the countries’ convergence to IPSAS from a cultural perspective

PurposeThis paper aims to assess the factors that may explain the International Public Sector Accounting Standards (IPSAS) convergence, considering Hofstede’s cultural dimensions as the theoretical reference for the cultural approach proposed. Additional factors include countries’ contextual and macroeconomic characteristics.Design/methodology/approachLogistic and probit regression models were used to identify the factors that may explain the IPSAS (fully or adapted) use by countries, including 166 countries in this assessment (59 for those whose cultural dimensions are available).FindingsThe findings consistently indicate collectivism and indebtedness levels as explanatory factors, providing insights into cultural dimensions along with macroeconomic characteristics as a relevant factor of countries’ convergence to IPSAS.Research limitations/implicationsThere are different levels of IPSAS convergence by countries that were not considered. This aspect may hide different countries’ characteristics that may explain those options, which could not be distinguished in this paper.Practical implicationsAs a result of this paper, the International Public Sector Accounting Standards Board may gain insights that can be applied within the IPSAS due process to overcome the main challenges when collaborating with national authorities to achieve a high level of convergence. This analysis may include how to accommodate countries’ cultural differences as well as their contextual and macroeconomic characteristics.Social implicationsThere is a trend of moving toward accrual-based accounting standards by countries. Because the public sector embraces a new culture following the IPSAS path, it is relevant to assess if there are cultural factors, besides contextual and macroeconomic characteristics, that may explain the countries’ convergence to those standards.Originality/valueTo the best of the authors’ knowledge, this is the first cross-country analysis on the likely influence of cultural dimensions on IPSAS convergence as far as the authors’ knowledge.

IPSAAS Attributes Dissensions and SMEs Tax Payment Compliance Integrity

AbstractThis study analyses International Public Sector Accounting Standards' effects on the integrity of Small and Medium Enterprises (SMEs) tax payment compliance. This study uses a cross-sectional survey design based on primary data from a questionnaire administration. The sample size is three hundred and nine SMEs. This study employs Descriptive, Pearson Correlation and Multivariate Analysis of Variance (MANOVA) statistical analysis. Findings show that among the tax payment compliance impeding factors are the government's inability to satisfy SMEs in service delivery improvement and developmental goal promise actualisation. SMEs' resistance to pay tax results from a flawed tax dispute resolution system at a severe mitigating significant level. The governance responsiveness through IPSASs attributes dissension contradicts John Locke's social contract doctrine of civil society rights and benefits.  Hence, this study recommends that officeholders should enhance the SMEs' tax payment compliance level. Public officers' approach to governance should reduce taxpayers' exploitation for self-aggrandisement.  Keywords:Tax payment compliance, Integrity, International Public Sector Accounting Standards, Small and Medium Enterprises, Government Responsiveness

Discipline and Punish: A Study Exploring the Adoption of NPM-Inspired Accounting Reforms in the Provincial Governments in the Solomon Islands

This presentation aims to illustrate part of my findings which capture the adoption of New Public Management (NPM)-inspired reforms at the provincial government level in the Solomon Islands. The overall aim of the study was to examine the adoption of two NPM-inspired accounting reforms (cash-based IPSAS – or International Public Sector Accounting Standards – and performance-based budgeting) and a participatory budgeting system in the Solomon Islands. The paucity of attention given to Public Sector Accounting Research (PSAR) in socio-cultural settings in developing countries motivated this study. Drawing on Foucault’s disciplinary power (Foucault, 1977) the study demonstrated how accounting as a ‘calculative infrastructure’ was able to transform the provincial governments in the Solomon Islands. The study applies the interpretive methodology that integrates with a critical theory to interpret the data (Chua, 1986b; Power & Laughlin, 1992). A total of 60 semi-structured interviews were held at both levels of government (national and provincial). Documents were also gathered, including historical data. Thematic analysis was employed and was guided by Foucault’s principles of critical interpretation. The presentation concludes by highlighting how accounting as a ‘calculative infrastructure’ plays an instrumental role in mediating conflict between political groups.  In doing so, the study supports prior calls for an in-depth analysis of neoliberal reforms such as those inspired by the NPM in order to better understand the manifold implications of accounting in a wider social context.

International Public Sector Accounting Standards and Deterrent of Corrupt Practices in the Public Sector of Ogun State Nigeria

International Public Sector Accounting Standards (IPSAS) are expected to enhance transparency and accountability and deter corrupt practices in public sector. This study investigated the extent to which the implementation of the standards deters corrupt practices in Ogun State, Nigeria. The study adopted survey research design using questionnaire for its primary data obtained from staff in selected Ministries Departments and Agencies (MDAs) in Ogun state, Nigeria. The selected MDAs are: The Federal University of Agriculture, Abeokuta; Federal College of Education, Osiele, Abeokuta; Ogun-Oshun River Basin Development Authority, Abeokuta, and Federal Medical Centre, Abeokuta. Ogun State was chosen because of ease of access and because the state combines the features of an industrial state with those of civil service state. The sample size is 600 accounting staffers and lecturers that cut across the MDAs. Results of regression equation revealed that the standards exert positive and significant effect on deterring corrupt practices with probability values of 0.000. This study observed that the adoption of the standards alone cannot totally curb corruption in Nigeria. Constant staff trainings, political will to bring corrupt officials to book and proper use of discretionary measures in the standards are therefore strongly recommended by this study.

Constraints and stimuli in the implementation of public accounting reform: systematic literature review and future research agenda

Purpose The purpose of this study is to discuss the most relevant literature related to the adoption of International Public Sector Accounting Standards (IPSAS) in the public sector in developed and developing countries, identifying the constraints and stimuli they represent in the implementation of the public accounting reform. It also presents future research proposals on the factors identified. Design/methodology/approach The methodology is based on a systematic review of the literature described by Moher et al. (2009). The final sample includes 90 academic papers published from 2000 to 2022. Findings The main findings indicate that there are differences between constraints and stimuli in the implementation of accounting standards between developed and developing countries. In terms of constraints, the main factor in developed countries is the lack of training, whereas in developing countries it is the limitation on financial resources. In addition, the results demonstrate that in developed countries the factors that most encourage the implementation of accounting standards are modernization and improvement of accounting, while in developing countries, encouragement comes mainly from external and internal pressure. Practical implications This study helps countries and institutions to learn from experience and better prepare for the accounting reforms of public administration that they will undertake. Managers of public organizations may be willing to make decisions in the adoption of IPSAS if they take into account the factors established herein. Social implications This study helps countries and institutions to learn from the experience, better prepare for the public administration accounting reforms that they will undertake and add greater transparency in the accountability of public accounts to citizens. Originality/value In addition to previous studies, this study addresses a number of factors perceived by those involved in the implementation of IPSAS in developed and developing countries and provides a robust research agenda to pursue during the coming years, as there are several important unexplored questions that invite further research.

Readiness of Accountants in Applying Vietnam Public Sector Accounting Standards: Study in Ho Chi Minh City

Purpose: The purpose of this study is to identify factors affecting the readiness to apply Vietnam public sector accounting standards of accountants.
  
 Theoretical framework: By combining behavioral theory including theory of intended behavior, the Technology Acceptance Model and the Institutional isomorphism theory, this study built up a research model over readiness of accountant in application of Vietnam public sector accounting standards in Vietnam.
  
 Design/method/approach: This study surveyed 179 experienced accountants who are working in public sector in Ho Chi Minh city, one of the two largest city in Vietnam, to explore factors affecting their readiness by applying PLS-SEM (Partial Least Square - Structural Equation Modeling) to test the hypotheses of the research model.
  
 Findings: Results showed that three factors of research model including attitude, perceived usefulness and coercive pressure have impact on readiness of accountant in application of Vietnam public sector accounting standards.
  
 Research, Practical & Social implication:  The study successfully tested the role of the attitude variable for the readiness of application, which is ignored by previous research.
  
 Originality/value: Research results can help the authorities improve the feasibility and efficiency of the implementation of Vietnam public sector accounting standards. Research results can also help organizations identify issues that need improvement as well as changes in the internal management system to apply Vietnam public sector accounting standards more effectively.

Benefits of IPSAS and their differences from IFRS: a discussion paper

PurposeThis paper tries to shed light on the international progress regarding the adoption of International Public Sector Accounting Standards (IPSAS), to accentuate the benefits resulting from the application of IPSAS, and to highlight the main differences between IPSAS and IFRS.Design/methodology/approachA comprehensive literature review is conducted which focuses on issues concerning the factors that induce the adoption of IPSAS, the obstacles that must be overcome, the degree of IPSAS’ proliferation worldwide, the repercussions from adopting IPSAS, the benefits of IPSAS, and the differences between IPSAS and IFRS. The selection process of the cited articles focuses on journals with high rankings in the ABS list.FindingsIt is accentuated that IPSAS carry significant benefits regarding the improved quality of the financial information reported by the public sector, the enhancement of transparency and accountability, the upgrading of the decision-making process and the restored trust in public finances. However, there is more work that needs to be done toward the global proliferation of IPSAS.Practical implications This study provides insights regarding the implementation process of IPSAS, which should be useful to all the parties engaged in the reform of the public administration, such as national governments, local or international regulators, accounting standard setters and institutional organizations.Originality/valueThe current study clarifies whether the public sector should move from using the business focused IFRS, as it is frequently the case, to the adoption of IPSAS. In addition, this study comprehensive literature review can be used by academics and researchers as a basis for further research on the issue. More importantly, policymakers and other officials who need to make informed decisions about financial reporting issues at the government level and the public sector in general can benefit from this study.

Disclosure Level before and after the application of an IPSAS based accounting system: The case of Greece

Purpose – The purpose of this paper is to compare the level of central government financial information disclosed in the annual financial statements before and after the adoption of an accounting system based on International Public Sector Accounting Standards (IPSAS). A comparison of this disclosure level to the IPSAS required disclosure level is also performed.
 Design/methodology/approach – This study uses a checklist of disclosure items used to measure the IPSAS disclosure level and compare this with the score of the government financial statements in Greece for the years 2011-2020.
 Findings – The results show significant differences between the disclosure level of the government financial statements before and after the application of an IPSAS based accounting system. Specified application difficulties explain the difference between the required IPSAS disclosure level and the level already achieved by the Greek public accounting system.
 Practical implications – The research findings are potentially relevant to academics and practitioners since it provides evidence on the improvement of the disclosure level on the process of IPSAS application. It also identifies difficulties faced on this process and explains how they affect the disclosure level achieved.
  
 JEL CODE: H83
 Key words: International Public Sector Accounting Standards, Disclosure, Public Sector Accounting

New development: IPSAS-lite—Some reflections and a call for research

IMPACT While public sector entities range in size, influence and complexity, few countries write financial reporting standards specifically to accommodate the particular user needs of smaller or less complex entities. In addition to reducing the benefits to users, this is likely to impose greater costs on preparers. The author argues that the International Public Sector Accounting Standards Board (IPSASB) should address this problem by implementing its proposal for ‘IPSAS-lite’. Some structural decisions that IPSASB will need to make are outlined.

Neoliberalism, ‘honour’-based regulatory frameworks of accounting and accountability in a social context: An examination of the role of accounting in the management of subsidies on petroleum products in Nigeria

Nigeria subsidises the cost of petroleum products for its citizens, but corruption means that the cost is rising and to maintain the subsidy, Nigeria has sought financial support from international financial institutions, such as the World Bank and International Monetary Fund. However, this support is contingent on neoliberal economic policy reform, in which the World Bank calls for the removal of petroleum product subsidies and the implementation of Western ‘honour’-based regulatory frameworks, that is, International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS), to improve transparency and accountability. Considering endemic corruption in the Nigerian cultural and socio-political context, where political elites can override any rule and politicians, public officials, and professionals can intentionally manipulate accounting records, we examine the limits of governance/accounting frameworks and explore the boundaries of accountants’ oversight function. In particular, we discuss the impact of ‘honour’-based regulatory frameworks, such as IFRS and IPSAS, on transparency and accountability in the Nigerian oil and gas sector and in the government subsidy programme. This study challenges the neoliberal assumption that Western ‘honour’-based IFRS and IPSAS, widely adopted in developed countries where fraud is rare, can improve transparency and accountability in developing economies like Nigeria, where corruption is endemic.

MEASURING THE FINANCIAL PERFORMANCE OF AGRICULTURAL ECONOMIC UNITS BASED ON THEIR REPORTING OF BIOLOGICAL (AGRICULTURAL) ASSETS, IN TERMS OF IPSAS 27

This study underscores the significance of accounting for biological (agricultural) assets within the Horticulture Office of the Iraqi Ministry of Agriculture, in strict compliance with proposed International Public Sector Accounting Standards (IPSAS). Specifically, it emphasizes the importance of proving accounting operations and presenting critical financial statements, such as the statement of financial position, statement of financial performance, statement of changes in net assets/equity, and statement of cash flows, in a manner consistent with the fair value of current biological assets and the revaluation of non-current assets (perennial plants). The study also delves into the relevant accounting treatment for revaluation differences and their impact on financial statement preparation. These measures are urgently required to tackle the challenges facing the current government accounting system in Iraq, which have adversely impacted the comprehensiveness of government financial reports and compromised the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture. One of the research's salient findings is that preparing financial statements in accordance with IPSAS for the public sector can provide users with more insightful information for informed decision-making. Among the key recommendations is the need to represent financial information for events and transactions that transpire during the financial year in a transparent and accountable manner, through the adoption of IPSAS standards. This, in turn, ensures the preparation of high-quality financial reports that are rich in qualitative accounting information, thereby enhancing the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture.

Impact of International Public Sector Accounting Standards (IPSAS) Adoption on Accountability and Transparency in the Tanzanian Public Sector Organizations

Impact of International Public Sector Accounting Standards (IPSAS) Adoption on Accountability and Transparency in the Tanzanian Public Sector Organizations

Influence of Training, Experience, and Expertise on Quality of Financial Reporting in Dubai – Mediation of Adoption of International Public Sector Accounting Standards –IPSAS

Influence of Training, Experience, and Expertise on Quality of Financial Reporting in Dubai – Mediation of Adoption of International Public Sector Accounting Standards –IPSAS

Differential reporting in the public sector—financial reporting for small- and medium-sized entities

IMPACT According to the International Public Sector Accounting Standards Board (IPSASB), public sector entities should apply the IPSAS when they fulfill certain criteria, such as the delivery of public services or financing by taxes. Size is currently not a matter for the application of IPSAS and smaller public sector entities have to apply the full suite of IPSAS. Based on an empirical study, this article shows that differential reporting is a suitable approach to overcome the accounting challenges that small- and medium-sized public sector entities (SMPSEs) are facing. The authors explain the potential advantages and disadvantages of differential reporting in the context of SMPSEs’ accounting challenges.

The role of the professional association in the translation of accrual accounting in the Sri Lankan public sector

PurposeThis study examines accounting reform in the Sri Lankan public sector using an actor–network perspective. The study is particularly concerned with the role of the Institute of Chartered Accountants Sri Lanka (ICASL) in building networks of organisational actors in the diffusion of Sri Lankan Public Sector Accounting Standards (SLPSAS).Design/methodology/approachThe empirical data draws on interviews with key actors to understand the role of ICASL in the diffusion of SLPSAS. Twenty-two semi-structured interviews were conducted with members of ICASL and senior public sector officers. The data were analysed based on the four stages underlying the translation process: problematisation, interessement, enrolment and mobilisation.FindingsThe data suggest that ICASL became a lead player in the diffusion of public sector accounting standards because of its superior technical capability. ICASL cultivated a way of thinking about accrual accounting by executing relational influence generated through professional knowledge, and connections with the government and public sector accountants.Research limitations/implicationsFindings should be interpreted with caution; data are limited by the subjective interpretation of data. By concentrating on the role of ICASL, the role and influence of other key actors may be overlooked.Originality/valueThis study contributes to the literature on how innovations transform accounting practice through the lens of the ICASL. The result builds on evidence explaining why provincial governments and public sector governments were hesitant to adopt SLPSAS despite central government directives.