Diffusion of the Cash Basis International Public Sector Accounting Standard (IPSAS) in Less Developed Countries (LDCs) – The Case of the Nepali Central Government
The Public Sector Accounting, Accountability and Auditing in Emerging Economies
ISBN: 978-1-78441-662-1, eISBN: 978-1-78441-661-4
Publication date: 15 October 2015
Abstract
Purpose
The adoption of International Public Sector Accounting Standards (IPSASs) in particular the Cash Basis IPSAS has now become a priority for the World Bank and other donors in less developed countries (LDCs). The paper explores the dissemination and implementation of the Cash Basis IPSAS in Nepal, a less developed country which is considered as one of the front-runners in terms of embracing the Cash Basis IPSAS.
Methodology/approach
The paper draws on diffusion theory to explain the internal and external factors related to the adoption and implementation of the Cash Basis IPSAS in the Nepali public sector. Data for the paper are derived from document analysis and semi-structured interviews.
Findings
The study shows that the adoption and implementation of the Cash Basis IPSAS in Nepal has become more of rhetoric than reality. Claims that the Cash Basis IPSAS is gaining popularity and widespread success across less developed countries are therefore contentious.
Research limitations
The case of Nepalese central government may not be adequate to generalise the adoption of the cash basis IPSAS in all less developed countries. Nonetheless, the study provides an overview of on-going public sector accounting reforms in less developed countries.
Originality/value
The paper emphasises the need for the identification of good accounting practices for less developed countries rather than forcing them into symbolic acceptance of the Cash Basis IPSAS. An example of such a good practice can be the promotion of certain aspects of modified cash accounting.
Keywords
Citation
Adhikari, P., Kuruppu, C., Wynne, A. and Ambalangodage, D. (2015), "Diffusion of the Cash Basis International Public Sector Accounting Standard (IPSAS) in Less Developed Countries (LDCs) – The Case of the Nepali Central Government", The Public Sector Accounting, Accountability and Auditing in Emerging Economies (Research in Accounting in Emerging Economies, Vol. 15), Emerald Group Publishing Limited, Leeds, pp. 85-108. https://doi.org/10.1108/S1479-356320150000015004
Publisher
:Emerald Group Publishing Limited
Copyright © 2015 Emerald Group Publishing Limited