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The Effect of IPSAS on Reforming Governmental Financial Reporting: an International Comparison

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  • J. CHRISTIAENS
  • C. VANHEE
  • F. MANES-ROSSI
  • N. AVERSANO

Abstract

Over the past 25 years significant New Public Management (NPM) reforms, particularly towards accrual accounting, have characterized the public sector in many countries. The diversity in public financial information systems created a need for harmonization, resulting in the elaboration of International Public Sector Accounting Standards (IPSAS). Despite their relevance, little is known on the adoption process of IPSAS. This study aims to examine to what extent IPSAS-inspired accrual accounting is adopted in central / local governments worldwide as well as to investigate which factors affect the differing level of their adoption. Methodologically, a specific questionnaire constructed to obtain relevant information from local experts was sent worldwide to a sample of countries. The study reveals an important move to accrual accounting, particularly to IPSAS-accrual accounting whereby there still remains a level of reluctance mainly in central governments, especially in countries where businesslike accrual accounting has been developed.

Suggested Citation

  • J. Christiaens & C. Vanhee & F. Manes-Rossi & N. Aversano, 2013. "The Effect of IPSAS on Reforming Governmental Financial Reporting: an International Comparison," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/845, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:13/845
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    1. Andrei-Razvan Crisan & Cristina Silvia Nistor & Adriana Tiron-Tudor & Tudor Oprisor, 2016. "Ipsas Implementation And Perspectives For Epsas Implementation At The European Union Local Government Levels," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    2. Andrei-Răzvan CRIȘAN, 2014. "Similarities And Dissimilarities Between The Romanian Public Accounting System And Ipsas 1 – Presentation Of Financial Statements," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 229-235, July.
    3. Nicolae Marinescu, 2016. "Spillover Effects From Foreign Direct Investment To Local Smes. An Empirical Study," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    4. Wioletta Mierzejewska, 2016. "STRATEGIES AND STRUCTURES OF POLISH SMEs," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    5. Christofzik, Désirée I., 2019. "Does accrual accounting alter fiscal policy decisions? - Evidence from Germany," European Journal of Political Economy, Elsevier, vol. 60(C).
    6. Mussari Riccardo & Sorrentino Daniela, 2017. "Italian Public Sector Accounting Reform: A Step Towards European Public Sector Accounting Harmonisation," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 7(2), pages 137-153, July.
    7. Amanda W. Beck, 2018. "Opportunistic financial reporting around municipal bond issues," Review of Accounting Studies, Springer, vol. 23(3), pages 785-826, September.
    8. 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.
    9. Oana Adriana Gica & Cristina Ioana Balint, 2016. "Tourism Globalization. The Case Of Romania," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    10. Andrei R. CRIŞAN, 2014. "Governmental Financial Reports: Between Variety And Integration," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 55-65, May.
    11. Ademola Abimbola O. & Ben-Caleb E. & Madugba Joseph U. & Adegboyegun Adekunle E. & Eluyela Damilola F., 2020. "International Public Sector Accounting Standards (IPSAS) Adoption and Implementation in Nigerian Public Sector," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 434-446, January.

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    Keywords

    Comparative public accounting; IPSAS; local government; central government accounting reform;
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