scholarly journals Determinants of public sector accounting reforms

2020 ◽  
Vol 33 (2/3) ◽  
pp. 191-205
Author(s):  
Chitra Sriyani De Silva Lokuwaduge ◽  
Keshara De Silva
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Sri Lanka ◽  
Developing Country ◽  
Financial Management ◽  
Accounting Standards ◽  
Adoption Process ◽  
Sri Lankan ◽  
Content Type ◽  
Public Sector Accounting

Purpose The purpose of this paper is to extend the New Public Financial Management concept and the contingency model approach to an analysis of the determinants of the accrual-based International Public Sector Accounting Standards (IPSAS) adoption process as a financial management reform in Sri Lanka, a developing country in Asia. Design/methodology/approach Based on the prior literature, this paper develops a framework to highlight the importance of accrual-based reforms in public sector accounting policies to enable better transparency and accountability. It shows the extent to which Sri Lankan public sector institutions have adopted IPSAS-based accounting standards and the limitations of adopting these standards in a developing country, using documentary analysis. Findings In developing countries, the public sector faces practical problems when adopting reforms due to limited institutional capacity, high political involvement and bureaucracy in decision making. This paper concludes that significant policy changes towards the adoption of international accounting standards have gained momentum over the last decade in Sri Lanka while the much larger economies in Asia are still studying this process. However, the prevailing political uncertainty in Sri Lanka has negatively impacted the implementation process. Originality/value Relatively little is known about the diffusion of, and the difficulties in, implementing accrual-based IPSAS in the Asian region. This paper is an attempt to fill this gap by exploring the Sri Lankan experience. This could be applied by other developing countries in Asia, including the high-growth nations, for policy adoption and accounting harmonisation.

Accounting Reforms for Accountable Public Sector Management

2020 ◽  
pp. 41-64
Author(s):  
Chitra Sriyani De Silva Lokuwaduge ◽  
Keshara M. De Silva Godage
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Sri Lanka ◽  
Financial Management ◽  
Public Management ◽  
New Public Management ◽  
Developed Countries ◽  
The Public ◽  
New Public ◽  
Public Sector Accounting

Accounting reforms in the public sector have become one of the most debated aspects of the public sector financial management during the last three decades. Following the steps of developed countries around the globe, Sri Lanka as a developing country made initiatives to adopt international public sector accounting standards (IPSAS). The purpose of this study is to analyse the progress and the challenges they face in adopting IPSAS as a new public management (NPM) reform in Sri Lanka to enhance public sector accountability. Public sector accounting reforms in the developing countries in Asia is relatively under researched. Using the NPM concept, this study attempts to fill this gap. This chapter argues that even though Sri Lanka has initiated the move towards adopting IPSAS, developing countries face practical problems in adopting reforms due to their contextual factors such as limited institutional capacity and resources, high political involvements in decision-making, and high informality.

scholarly journals Sustainability key performance indicators and the global reporting initiative: usage and challenges in a developing country context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dinithi Dissanayake
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Developing Country ◽  
Performance Indicator ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Sri Lankan ◽  
Theory Approach ◽  
Key Factors ◽  
Content Type

Purpose First, this paper aims to explore the extent of the global reporting initiative (GRI) sustainability key performance indicator (KPI) usage in sustainability reporting by businesses operating in Sri Lanka. Second, using a contingency theory approach, this research examines the factors which promote or inhibit the use of the GRI framework to adopt sustainability KPIs in a developing country context, Sri Lanka. Design/methodology/approach Content analysis and semi-structured interviews are used in this study to explore the key factors which affect the usage of the GRI framework by Sri Lankan companies in adopting sustainability KPIs and reporting on sustainability. Findings The findings indicate that the GRI framework is increasingly used for sustainability reporting by Sri Lankan companies because of its flexibility, consistency, legitimacy and its focus on continuous improvement. However, company managers also shed light on the extensive number of KPIs in the GRI framework making selections challenging and the consequent difficulties associated with adapting these KPIs for companies operating in a developing country context. Research limitations/implications This study contributes to extending the broader literature on sustainability reporting in developing countries and specifically on sustainability KPIs. Second, this paper adds to the current empirical research on sustainability reporting in Sri Lanka where the literature is still sparse. Third, this study highlights the key factors that support or hinder the usage of the GRI framework in a developing country context. Practical implications Important insights for GRI, other standard-setting agencies and businesses can be drawn from the findings of this study. By capitalising further on the training and the educational courses provided by GRI, GRI can be involved in mitigating some of the pressing issues faced by the reporting companies. Originality/value This study adds to the limited research on sustainability reporting and sustainability KPIs in developing country contexts. It shows how companies in Sri Lanka are engaging with sustainability KPIs and sustainability reporting, but are also constrained by the GRI framework as its standards are not tailored to issues in developing countries.

Board involvement in corporate performance: evidence from a developing country

2015 ◽  
Vol 5 (3) ◽  
pp. 250-268 ◽  
Author(s):  
Chaminda Wijethilake ◽  
Athula Ekanayake ◽  
Sujatha Perera
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Developing Country ◽  
Resource Dependence ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Corporate Boards ◽  
Ceo Duality ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the understanding of the relationship between board involvement and corporate performance within the context of developing countries. Design/methodology/approach – A number of aspects related to board involvement, including board’s shareholdings, frequency of board meetings, availability of independent board committees, board size, CEO duality, and CEO is being a promoter, were examined in order to explore their influence on corporate performance measured in terms of earnings per share. The study mainly draws on agency theory, and is supplemented by resource dependence and stewardship theories. Multiple regression analysis is utilized to analyze the data gathered from a sample of 212 publicly listed companies in 20 industries in the Colombo Stock Exchange in Sri Lanka. Findings – Among the aspects of board involvement considered, board’s shareholdings, board meetings frequency, independent committees, and CEO duality showed a positive influence on corporate performance. However, two other aspects, namely CEO being a promoter, and the size of corporate boards showed a negative effect. The findings also suggest that the use of multiple theories, rather than depending on a single theory, is more effective in understanding the relationships examined in this study. Further, the study highlights the need to be cautious in utilizing the theories that are more applicable to matured western economies when analyzing issues relating to developing countries. Originality/value – This study makes an original contribution to corporate governance literature by examining the relationship between board involvement and corporate performance in a developing country, namely Sri Lanka. The study also adds to the existing literature by utilizing multiple theories to examine the issue under investigation.

scholarly journals Institutional Isomorphism And Adoption Of International Public Sector Accounting Standards By African Countries

2019 ◽  
Vol 7 (05) ◽  
Author(s):  
Dr. Muganda Munir Manini
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Financial Management ◽  
Public Funding ◽  
Accounting Standards ◽  
Target Population ◽  
Institutional Isomorphism ◽  
African Countries ◽  
The Public ◽  
Public Sector Accounting

The international harmonization of financial reporting standards in the public sector is one of the significant public sector accounting reforms which have gained prominence in the recent past under the New Public Financial Management order. However, previous empirical evidence provided mixed results on the extent of African countries’ decision on the adoption of International Public Sector Accounting Standards and its relationship with institutional isomorphism factors. The purpose of this study was to examine the influence of institutional isomorphism (normative, mimetic and coercive) on the adoption International Public Sector Accounting Standards by African countries. The target population was 54 countries; however the final sample was 29 countries which comprised the dataset. A logistic regression analysis was thereafter conducted. Based on the Institutional Theory, the study revealed external public funding (coercive isomorphic pressure), the countries’ global competitiveness (mimetic isomorphic pressure), and human capital (normative isomorphic pressure) were non significant factors in a countries decision to adopt IPSAS. This study contributes to the literature on the international accounting in the public sector. The results of the study have significant managerial and theoretical implications for accounting standards regulators, researchers, and multilateral organizations.

The IPSASB's recent strategies: opportunities for academics and standard-setters

2020 ◽  
Vol 32 (3) ◽  
pp. 315-319 ◽  
Author(s):  
Gwenda Jensen
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Fitness For Purpose ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Public Sector Accounting ◽  
Ongoing Dialogue ◽  
Practical Implications

PurposeThe purpose of this article is to contribute to an ongoing dialogue between practitioners and academics. This article describes the International Public Sector Accounting Standards Board (IPSASB) recent strategies and highlights the IPSASB's increasing outreach to academics.Design/methodology/approachThis is a practitioner's viewpoint which reflects the IPSASB's publicly available documents, and the opinions of a practitioner directly involved in the IPSASB's work and International Public Sector Accounting Standards (IPSAS) development.FindingsThe findings are that the IPSASB has increased its outreach to academics and now academics have more opportunities to engage with the IPSASB and IPSAS developments. The IPSASB's strategy has remained relatively constant over time, focusing on IPSAS to address public sector-specific issues, alignment with the International Financial Reporting Standards (IFRS) and reduction of differences between IPSAS and Government Finance Statistics (GFS) reporting guidelines.Research limitations/implicationsThe limitations of this article (which are also its strength in terms of fitness for purpose) are that as a practitioner's viewpoint it provides a brief overview and personal judgments, rather than an empirical analysis of developments applying a theoretical framework.Practical implicationsThe practical implications were IPSASB's increased outreach to the research community providing opportunities for academics to have increased input into IPSAS development, with likely benefits to researchers and the IPSASB.Social implicationsPractitioners’ engagement with academics supports increased understanding of the respective views leading to better outcomes for practitioners and academics working in the area of public sector financial reporting and its regulation.Originality/valueThis article is the first to (a) describe the IPSASB's increasing outreach to academics during 2019–2020 and (b) compare the IPSASB's strategies for the period of 2019–2023, with its strategies since the beginning of IPSAS developments in 1996–1997.

scholarly journals Perception of Government Accountants on Current Public Sector Accounting Practices and Implementation of Public Sector Accounting Standards in the Sri Lanka

2019 ◽  
Vol 11 (1) ◽  
pp. 76
Author(s):  
Vickneswaran Anojan
Keyword(s):  
Public Sector ◽  
Sri Lanka ◽  
Public Expenditure ◽  
Accounting Standards ◽  
The Public ◽  
Reporting Practices ◽  
Public Sector Organizations ◽  
Public Sector Accounting ◽  
Accrual Basis ◽  
Assets Management

The main aim of the study is to find out the perception of government accountants on current public sector accounting practices and implementation of public sector accounting standards in the Sri Lanka. Public sector accounting practices involve with public expenditure, budget preparation, maintain proper accounting records, assets management, public financial management and provide reports on the public expenditure and revenue. Most of the public sector organizations do not prepare final accounts on accrual basis in the Sri Lanka. Primary data used in this study which data collected from government accountants in Sri Lanka. Mean analysis confirmed that there is moderate level of public sector accounting practices and implementation of public sector accounting standards in the Sri Lanka. Correlation analysis confirmed that there is significant relationship between public sector accounting practices and implementation of public sector accounting standards. Implementation of public sector accounting standards are positively impact on the public sector’s financial reporting practices and assets management practices in the Sri Lanka. Also below 23 percentage of public sector organizations are preparing final accounts on accrual basis. More than 97 percentage government accountants have ability to prepare annual accounts on accrual basis. Government administrators, policy makers and professional institutions should motivate effective and efficient implementation of the public sector accounting standards which will lead to a healthy public sector accounting practices in Sri Lanka. 

scholarly journals Editorial: A diversified outlook at the theory and practices of corporate governance

2021 ◽  
Vol 19 (1) ◽  
pp. 4-6
Author(s):  
Marco Tutino ◽  
Áron Perényi ◽  
Alexander Kostyuk
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Public Sector ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Management ◽  
Accounting Standards ◽  
Corporate Ownership ◽  
Recent Issue ◽  
And Control

The recent issue of the Corporate Ownership and Control journal (volume 19, issue 1) covers the following key themes: accounting standards, corporate governance and social responsibility, public sector governance, financial management and firm performance. The authors represent a range of developed and developing countries, making this issue of the journal truly international.

Unrecognized assets created by public-sector investments in health and social services

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deborah Milinkovic ◽  
Jeremiah Hurley ◽  
Arthur Sweetman ◽  
David Feeny ◽  
Jean-Éric Tarride ◽  
...  
Keyword(s):  
Human Capital ◽  
Public Sector ◽  
Intangible Assets ◽  
Accounting Standards ◽  
Social Program ◽  
Intangible Asset ◽  
Social Programs ◽  
Content Type ◽  
Public Sector Accounting ◽  
The Government

PurposeThis paper analyzes two types of potential intangible public-sector assets for consideration by public-sector accounting boards. Government investments in health and social programs can create two potential intangible assets: the intangible infrastructure used to deliver the health or social program and the enhanced human capital embodied in the recipients of program services. Because neither of these assets is currently recognized in a government's year-end financial statements or broader general-purpose financial reports (GPFR), these reports may underrepresent the government's true fiscal and service capacity.Design/methodology/approachThe paper uses an international accounting standards framework to analyze: whether investments in health and social programs create intangible assets that meet the definition of an asset as set out by International Public Sector Accounting Standards (IPSAS), whether they are assets of the government and whether they are recognizable for the purpose of financial reporting.FindingsThe intangible infrastructure asset created to facilitate the delivery of health and social programs would often qualify as a recognizable asset of the government. However, the enhanced recipient human capital asset created through the delivery of health and social programs would, in most instances, not qualify as a recognizable asset of the government, though there likely would be benefits from reporting on it through GPFRs or other mechanisms.Originality/valueThis paper makes two contributions. First, it identifies a previously overlooked intangible asset – the infrastructure created to facilitate the delivery of health and social programs. Second, it presents an argument regarding why, even when it fails to generate a recognizable intangible asset to government, it would be valuable for government to report such investments in supplementary statements.

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