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The reluctance of a developed country to choose International Public Sector Accounting Standards of the IFAC. A critical case study

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  • Oulasvirta, Lasse

Abstract

A movement towards internationally standardized public sector financial reporting started at the end of the 1990s. This standardization process is led by the non-governmental organization the International Federation of Accountants (IFAC). The IFAC has published International Public Sector Accounting Standards (IPSAS standards) for all public sector entities from national central governments to local governments. This article analyses the reasons why a developed country refused to adopt IPSAS standards. The analysis is done in the country context of Finland, where the national government accounting board (FGAB) took a negative stand on IPSAS standards. The method of this article consists of a literature review, interviews, a documentary review and of participatory observation in the FGAB. The article describes the reasons for the FGAB's decision and presents an interpretation supported by institutional theory. The choice of the FGAB is compared to the situation regarding the IPSAS adoption in European and especially in Nordic countries.

Suggested Citation

  • Oulasvirta, Lasse, 2014. "The reluctance of a developed country to choose International Public Sector Accounting Standards of the IFAC. A critical case study," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(3), pages 272-285.
    • Handle: RePEc:eee:crpeac:v:25:y:2014:i:3:p:272-285
    DOI: 10.1016/j.cpa.2012.12.001
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    Cited by:

    1. Elaine Stewart & Ciaran Connolly, 2021. "Recent UK Central Government Accounting Reforms: Claimed Benefits and Experienced Outcomes," Abacus, Accounting Foundation, University of Sydney, vol. 57(3), pages 557-592, September.
    2. Tóth, Balázs, 2021. "Milyen kapcsolatban állnak a közszféra reformjai a gazdaságpolitikai paradigmákkal? [How reforms of the public sector relate to the paradigms of economic policy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 205-222.
    3. Vincent Tawiah, 2023. "The Effect of IPSAS Adoption on Governance Quality: Evidence from Developing and Developed Countries," Public Organization Review, Springer, vol. 23(1), pages 305-324, March.
    4. Alessandro Lombrano, 2021. "Dall?armonizzazione alla standardizzazione contabile. Quale via per la riforma degli ordinamenti contabili europei," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2021(3), pages 7-31.
    5. Oulasvirta Lasse Olavi, 2014. "Governmental Financial Accounting and European Harmonisation: Case Study of Finland," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 4(3), pages 237-263, December.
    6. Zubir Azhar & Ervina Alfan & Krishnen Kishan & Nurul Husna Assanah, 2022. "Accrual Accounting at Different Levels of the Public Sector: A Systematic Literature Review," Australian Accounting Review, CPA Australia, vol. 32(1), pages 36-62, March.
    7. Sylvie Rascol-Boutard & Ariel Eggrikx & Pascale Amans, 2018. "L'impasse des comptabilités publique et privée: rendre visible les "biens communs"," Post-Print hal-02289782, HAL.
    8. Fransisca Listyaningsih Utami & Yananto Mihadi Putra & Putri Renalita Sutra Tanjung & Lucky Nugroho, 2020. "Analysis of Audit Opinion of Financial Statements From State Institutions: Indonesia Empirical Study, Period 2012-2017," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 150-160, October.
    9. Ahmed Eltweri & Alessio Faccia & Scott Foster, 2022. "International Standards on Auditing (ISAs) Adoption: An Institutional Perspective," Administrative Sciences, MDPI, vol. 12(3), pages 1-19, September.
    10. Tóth, Balázs, 2020. "The Public Sector Accounting Reform of 2014 in the Light the Experiences of the Local Governments — A Pilot Project to Explore the Problems," Public Finance Quarterly, Corvinus University of Budapest, vol. 65(2), pages 245-262.
    11. Albertus Theo Jonathan & Khoirul Aswar & Ermawati, 2020. "The Implementation of Accrual Basis Accounting in Indonesian Local Government," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 67-72.

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