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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.

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.

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.

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.

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.

Government accounting shows the assets and resources of the government, the changes that occur in them, to provide the necessary information to evaluate the effectiveness of the government in revenue and expense management, and to produce the information required by economic management. In this context, the past, present, and future of the Turkish government accounting system discussed in the theoretical framework in the study.

The principle of prudence plays a critical role in the design of national and international public sector accounting. Whereas in private sector accounting there is a substantial body of literature with regard to conservatism, the academic debate on the prudence principle in public sector accounting has only started recently. The aim of this chapter is to analyse whether the International Public Sector Accounting Standards (IPSASs) address asymmetric prudence with respect to measurement. This chapter shows that the existence of requirements leading to asymmetric prudence with regard to the measurement of assets is widespread throughout the suite of IPSASs.

In recent years, accounting for heritage assets has evolved but continuing the diversity in reporting practices remains problematic. Traditional cash-based budgets are still common in governmental accounting in some countries, but these ignore heritage assets as they are non-realisable and often do not generate revenue. Heritage assets do, however, incur cash outflows. The adoption of accrual accounting for recording heritage assets raises the technical issues of recognition and measurement of such assets, both in the balance sheet and income statements.

This chapter examines the financial reporting environment for heritage assets in New Zealand (NZ). The authors provide evidence on the reporting practices of heritage assets by five of NZ’s significant museums during the period 2011–2020, under IAS 16 and IPSAS 17 requirements. The authors analyse disclosures on heritage assets in the financial reports of these museums, including accounting policies, valuation and measurement, income statement impact, and related notes.

The findings suggest that, despite the existence of the International Financial Reporting Standards (IFRS) (IAS 16) and International Public Sector Accounting Standards (IPSAS) (IPSAS 17) reporting standards during this period, a variety of reporting practices exist among NZ museums. For example, heritage assets are recognised either at fair value or historical cost on the balance sheet or not recognised in the financial statements at all. These findings suggest substantial non-uniformity in the actual measurement and reporting of heritage assets. They are of interest to policy-makers and regulators, particularly in countries that are currently considering adoption of IPSAS.

Purpose – This empirical article aims at studying whether, how, and to what extent the South Asian countries have or are planning to move in the International Public Sector Accounting Standards (IPSASs) direction.

Design/methodology/approach – By applying the institutional perspectives, the article seeks to explore the roles and contributions of international financial institutions in the dissemination of public sector accounting reform ideas, particularly IPSASs ideas in South Asia. Document search represents the major method of collecting data for this study.

Findings – The present article demonstrates that the majority of the South Asian countries have envisaged the adoption of the cash basis IPSAS as a way forward in order to implement accrual accounting. International financial institutions have seemingly created a myth in the region that accrual accounting cannot be introduced without first complying with the cash basis IPSAS. However, the countries’ efforts are to a large extent directed at adapting rather than adopting IPSASs in all material respects. In relation to this, the article suggests that the acceptance of IPSASs in South Asia is better understood in terms of legitimacy.

Research limitations/implications – It is beyond the scope of this article to cover the ongoing public sector accounting reforms in South Asia other than IPSASs reforms as well as to reveal accounting changes at other levels than central government level.

Practical implications – The article raises doubts as to whether and to what extent the cash basis IPSAS will help public sector management reforms in South Asia.

Originality/value – Given the paucity of consistent research efforts on the topic in Western English language literature, the present article strives to bring ongoing IPSASs reforms in South Asia into the international arena. The article also contributes to the growing body of the comparative public sector accounting research by presenting the similarities and differences in government accounting reforms, particularly IPSASs reforms, in South Asia.

The objective of this chapter is to compare the measurement bases of income and expenditures found in International Public Sector Accounting Standards (IPSAS) used in Public Accounts with those in the statistical rules used in National Accounts/Government Finance Statistics (GFS). Both frameworks apply an accrual methodology, but, while some governments appear dubious about adopting the IPSAS framework, the National Accounts framework is more ‘tried and tested’ for government financial reporting on an international scale. The practical application of the accrual methodology in the two frameworks differs to a certain extent. These differences provide learning opportunities for both frameworks.

With the growth of municipal capitalism, both local governments (LGs) and their related entities are involved in debates about public sector financial debts. This chapter seeks a deeper understanding of the relevance of measuring liabilities through the consolidated financial statements (CFS). With regard to a sample of Italian LGs, the analysis show that debts calculated with reference to the CFSs is statistically different from that derived from the analysis of the separate financial statements (SFS). The authors also conclude that the differences are largely due to the impact of non-controlled entities, which are proportionately consolidated. The analysis of this study is limited to considering the impact of debt and does not take into account other financial or non-financial variables. The usefulness of CFSs must also be evaluated with reference to these elements.

The purpose of this paper is to analyse the reasons why Sri Lanka adopted International Public Sector Accounting Standards (IPSAS) recently. Many less developed countries (LDCs) have introduced IPSAS during the recent past. However, little research has been conducted to study the New Public Financial Management and accrual accounting and their impact on LDCs.

Using a qualitative approach, the methods of this paper consist of interviews, a documentary review and participatory observation in the Ministry of Finance and Planning (MOFP) and Auditor General’s Department of Sri Lanka, and present a critical interpretation supported by the perspective of globalisation.

The findings of the research indicate that the public sector reforms and the transition from cash accounting to accrual accounting in the public sector have been strongly affected by the global pressures imposed by international agencies such as International Public Sector Accounting Standards Board (IPSASB) and the World Bank (WB). Empirical evidence shows the dysfunctional impact of globalisation in the public sector accounting standards as there are major structural issues yet to resolve. There are increasing doubts over whether the change to accrual accounting is worth the costs and the additional risks involved.

The results of the interviews are based on the knowledge and past experiences of interviewees. What is generalisable is an understanding of the processes and mechanisms that relate to the way the public sector accounting functions.

This paper adds new literature on public sector accounting in LDCs, which recognises the nexus and interests of international agencies and practice of public sector accounting.

The data expected from the governmental accounting, in which all the budget operations are recorded, and the reports based on these data couldn’t be achieved until recently. To meet the necessities of society, the most important instrument of the modern state aiming to maximize the level of welfare is the taxes collected from the citizens, and the state has responsibilities in front of the society playing a funding source role. Moreover, in order to successfully manage the public administrations, which nowadays have more duties and authorities, it is a necessity to make use of the management information and methods. Thus, the development of public accounting, which refers to the determining, recording, and reporting all the financial operations performed by the state, has become inevitable. Many international regulations, modern accounting systems, and modern approaches have been developed for the public sector. In the present study, it was aimed to emphasize the development and importance of public accounting for the management and administration of the state.