Harmonising European Public Sector Accounting Standards (EPSAS): Issues and Perspectives for Europe’s Economy and Society

2014 ◽  
Vol 4 (3) ◽  
Author(s):  
Yuri Biondi
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Accounting Systems ◽  
The Public ◽  
Financial Reporting Standards ◽  
Adoption And Implementation ◽  
European Public ◽  
Public Sector Accounting

AbstractAccounting systems play a hidden but fundamental role as mode and instrument of representation, coordination and organisation for the public sector and its specific public action. Therefore, financial and accounting reforms transform, implement and reshape public policies as well as the working and very existence of public administration. Last March 2013, the European Commission started a relevant project with the intention to create harmonised “European Public Sector Accounting Standards” (EPSAS) and implement them in the Member States. Between 1995 and 2002, a similar project was already achieved for private sector accounting standards-setting, leading to adoption and implementation of International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB). The EPSAS project should decide if public sector accounting standards-setting shall follow a similar pattern to converge towards the International Public Sector Accounting Standards (IPSAS) that transplant the IFRS in the public sector. This choice may have fundamental implications for the European (Monetary) Union, since public sector accounting and public finances are fundamental elements of its institutional framework. This thematic issue aims to provide analyses and perspectives on this ongoing public sector accounting harmonisation process in Europe, addressing its governance and contents, as well as its consequences and implications for Europe’s economy and society.

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.

The harmonization of government financial information systems: the role of the IPSASs

2007 ◽  
Vol 73 (2) ◽  
pp. 293-317 ◽  
Author(s):  
Bernardino Benito ◽  
Isabel Brusca ◽  
Vicente Montesinos
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Central Government ◽  
Accounting Standards ◽  
Financial Information ◽  
Accounting Systems ◽  
Starting Point ◽  
Public Sector Accounting ◽  
Near Future

The publication of International Public Sector Accounting Standards (IPSASs) in the field of governmental financial reporting has raised the necessity for a wide-ranging discussion about the harmonization of public sector accounting systems. The article has a double aim: to show the adoption or not of IPSASs in local and central government and to analyse the level of convergence between the different countries studied. In order to achieve these objectives, we carried out an empirical study, whose results allow us to show that while some accounting systems are very close to the IPSASs model, others are completely different. Nevertheless, we think that this could be a starting point and that in the near future countries could tend towards IPSASs more and more, which may be the most probable way to reach convergence accounting systems between them.

scholarly journals Exemptions Resulting from the International Public Sector Accounting Standards (IPSAS) and European Standards for Intangible Investment, Inventories and Personnel Expenditures in Public Entities

2019 ◽  
Vol 24 (2) ◽  
pp. 124-130
Author(s):  
Corina Enache
Keyword(s):  
Public Sector ◽  
Accounting Standards ◽  
Financial Statements ◽  
General Purpose ◽  
Employee Benefits ◽  
International Accounting Standards ◽  
Adoption And Implementation ◽  
Public Sector Accounting ◽  
Personnel Expenses ◽  
European Standards

Abstract Simultaneously with the globalization of economies, it was necessary the adoption and implementation of international accounting standards for the public sector also. In 1996 a set of accounting standards for public sector entities was developed, namely International Public Sector Accounting Standards (IPSAS). After 31st July 1998, 32 IPSAS standards, mostly inspired by IASs, centered on model and engagement-based accounting, were issued. IPSAS 1 – Presentation of financial statements relating to the place of intangible assets, inventories and personnel expenses in the content and format of the financial statements is applied to all general purpose financial statements realized under accrual accounting. The IPSAS 12 – Inventory objective is to state the stock accounting treatment. The IPSAS 25 objective – Employee benefits is to state the employee benefits from an accounting perspective.

scholarly journals Factors Influencing the Implementation of International Public Sector Accounting Standards in Pakistan

2019 ◽  
Vol 14 (9) ◽  
pp. 15
Author(s):  
Javed Miraj ◽  
Zhuquan Wang
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Population Sample ◽  
Accounting Standards ◽  
Factors Affecting ◽  
Financial Reporting Standards ◽  
Accountability Measures ◽  
Public Sector Accounting ◽  
The Government ◽  
Poor Management

The significance and impact of Accrual-based Public Sector Accounting Standards (APSAS) in financial reporting has in recent times gained traction and has prompted debates which are aligned towards APSAS reporting. This implies that reforms in the government’s management systems are becoming critical towards examination of actions and steps taken to enhance demands for better transparency and accountability in the management of public finance. As is presently presented in Pakistan, there are numerous fundamental challenges that currently inhibit the efficiency of the government’s finance and accounting management. These problems arise due to poor supervision, poor management of basic financial functions, inefficient financial information including support for decision making, poor staff motivation and finally lack of proper accountability measures. Due to these arising challenges, the purpose of this study is to determine the factors affecting the implementation of Accrual-based International Public sector Accounting Standards (AIPSAS) in public sector of Pakistan. The study whose objective was to evaluate the barriers in the adoption of AIPSAS in Pakistan adopted a descriptive qualitative study model. A five-point Likert type scale was utilized to evaluate the results of the study. The study adopted simple randomization process to obtain the population sample group/respondents. The results of the research study recommended improvement of capacity building through training and offering educational courses which will help advance the enforcement of strong financial reporting standards.

Harmonisation of EPSASs (European Public Sector Accounting Standards): Developments and Prospects

2014 ◽  
Vol 4 (3) ◽  
Author(s):  
Marie-Pierre Calmel
Keyword(s):  
Public Sector ◽  
European Commission ◽  
Accounting Standards ◽  
European Countries ◽  
Accrual Accounting ◽  
The Public ◽  
Governance Model ◽  
European Public ◽  
Public Sector Accounting

AbstractThe European Commission initiated a project to introduce accrual accounting in European countries that meets the objective of improving the reliability, transparency and comparability of public accounts.This article describes the importance of defining the governance model for future European public sector accounting standards, explains the need to define accounting standards taking into consideration the specific features of the public sector and illustrates these points with the accounting treatment of financial liabilities.

scholarly journals THE IMPORTANCE OF THE CONVERGENCE OF INTERNATIONAL ACCOUNTING STANDARDS TO THE NATIONAL ACCOUNTING SYSTEM OF UZBEKISTAN

World Science ◽  
2019 ◽  
Vol 2 (1(41)) ◽  
pp. 19-22
Author(s):  
Ergasheva Shahlo Turgunovna ◽  
Shermatov Behzod Xalimkul
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Stock Exchanges ◽  
Accounting System ◽  
International Accounting Standards ◽  
Accounting Systems ◽  
Foreign Investors ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Speed Up

The actuality of the research:-Economic integration-Comparability & uniformity of financial statements-Attracting potential foreign investors.-The requirement of the world financial markets & stock exchanges. -The decreasing of costs of learning local standards.-The aim of research are:-Carrying out the improvement of our accounting systems to speed up the development of our country with the help of foreign investors’ capital.Developing our national accounting standards based on international financial reporting standards and to reveal the problems associated with this.

scholarly journals DO LITHUANIAN HIGHER EDUCATION ACCOUNTING PROGRAMS REFLECT ACCOUNTING HARMONIZATION IN THE EU?

2014 ◽  
Vol 2 ◽  
pp. 113-118
Author(s):  
Dalia Kaupelyte ◽  
Renata Legenzova
Keyword(s):  
Higher Education ◽  
Labor Market ◽  
Public Sector ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Public Sector Accounting ◽  
The Eu

Financial accounting is undergoing major changes in the EU and worldwide.  Great efforts are placed on adoption of high quality accounting standards for listed companies, public sector organizations as well as small and medium business entities.  Being a member of the EU Lithuania is in compliance with the EU incentives in de jure accounting harmonization; however de facto situation in Lithuania is not adequately assessed.  One of accounting harmonization related questions is whether Lithuanian higher education provides labor market with market-needs oriented accounting professionals.The objective of this article is to assess if Lithuanian higher education programs in accounting field is in compliance with EU accounting harmonization outcomes.  We analyze if graduates of Accounting programs from Lithuanian Higher Education Institutions are trained to work with different sets of accounting standards—International Financial Reporting Standards (IFRS) and Public Sector Accounting Standards that were adopted in Lithuania as a part of accounting harmonization incentives.  To conduct an assessment of research methods by case analysis, comparative analysis has been deployed.  We assessed programs goals, learning outcomes and course curriculum of Professional Bachelor, Bachelor and Master level programs in Lithuanian universities and colleges.Results of the research revealed that de jure accounting harmonization is reflected in Lithuanian higher education Accounting programs.  Accounting for listed companies (required to use International Financial Reporting Standards) is given little importance in Lithuanian Accounting programs. According to the analysis of the learning outcomes, graduates of the Accounting programs in Lithuania have a broad profile, but would not be able to work independently with International Financial Reporting Standards.  On the other hand, even if regulation of public sector accounting was enforced later, it is included in number of analyzed programs.  A number of Professional Bachelor’s programs even offer specialization in this area.  Results of the research allow us to conclude that colleges have their niche in preparing accounting specialist for local labor market and their positioning is relatively strong, concerning public sector accounting.  Meanwhile first and second level universities’ programs could be strengthened toward international accounting to provide labor market with professionals in this area. 

scholarly journals EXPENDITURES AND EXPENSES IN BUDGETARY INSTITUTIONS: ESSENCE, ACCOUNTING PROBLEMS AND WAYS TO IMPROVE

2021 ◽  
Author(s):  
Nadia Topolenko ◽  
Yulia Lavreniuk
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
The Public ◽  
Budgetary Institutions

In the conditions of public sector entities, much more attention is paid to accounting for income, expenditures and expenses, primarily by practicing accountants. The revenues of public sector entities represent the main source of their activities, and the costs make it possible to analyze their effectiveness and rationality of the use of budget allocations, so the organization of accounting for these objects determines the effectiveness of the activities of public sector institutions. The accounting system of public sector institutions is formed according to the modernization schemes approved at the legislative level. The public sector accounting plan and national accounting regulations (standards) in the public sector have significantly changed the established methods of accounting for the implementation of budgetary institutions. The economic classification of expenditures has also changed, the division of operations into exchange and non-exchange operations in accordance with international accounting standards for the public sector has also changed. The above has led to significant changes in the method of accounting for income, expenditures and expenses, which is due to the relevance of the study. The article specified and proposed new definitions of economic concepts of «income», «expenditures» and «expenses» of budgetary institutions. Various approaches to their interpretation are considered, attention is focused on the key problems of adaptation of accounting for income and expenses of budget funds managers in accordance with the implementation of the Strategy for modernization of the accounting and financial reporting system in the public sector for the period up to 2025 and approximation to the generally accepted principles of international practice. Changes in the methodology of accounting and display in financial statements of income and expenses of public sector entities were studied, the theoretical and practical aspects of improving the accounting of income, expenditures and expenses by public sector entities were highlighted. Proposals for improving the accounting of income and expenses in the public sector are given and substantiated.

Public sector accounting contexts in the EPSAS change: a comparative study of Italy and Sweden

2020 ◽  
pp. 002085231989468
Author(s):  
Daniele Natalizi
Keyword(s):  
Public Sector ◽  
Comparative Study ◽  
Accounting Standards ◽  
Standard Setting ◽  
National Standard ◽  
The Public ◽  
International Harmonization ◽  
Setting Process ◽  
European Public ◽  
Public Sector Accounting

Comparing Italy and Sweden, which are countries with different cultural and accounting traditions, this article focuses on the characteristics of their standard-setting processes for the public sector in order to evaluate their prerequisites for international harmonization. The recent attempt by European bodies to stimulate an international public sector accounting harmonization process, the European Public Sector Accounting Standards programme, requires that each country involved in the process assumes its position, taking into account a number of national factors and conditions. To this end, the research identifies the potential positive factors of a national public sector accounting standard-setting context that are favourable to international harmonization. While both countries differ in some respects, the study discusses how the ideal prerequisites can constitute a positive environment in which to implement international harmonization in the European context. Points for practitioners This comparative study identifies conditions to enhance an efficient and reliable national standard-setting process, summarizing the potential positive factors investigated in both countries. It argues that institutional arrangements and specific governance factors (a flexible legal system, efficient auditing, vertical harmonization, an inclusive and participative standard-setting process, and the maturity of accrual accounting) can support key actors in the public sector to react positively to international harmonization, with some emerging scepticism regarding the European Public Sector Accounting Standards programme.

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