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1 – 10 of 129The purpose of this paper is to assess the extent of central government financial information disclosed in accordance with accrual-based International Public Sector Accounting…
Abstract
Purpose
The purpose of this paper is to assess the extent of central government financial information disclosed in accordance with accrual-based International Public Sector Accounting Standards (IPSAS) and to investigate the environmental factors affecting this level, drawing on the contingency theory framework.
Design/methodology/approach
This study uses a self-constructed checklist of 116 items to measure the IPSAS disclosure level by 100 public sector entities from different countries across the globe during the period 2015–2017. Panel regressions have been used.
Findings
The results show significant differences in compliance levels with IPSAS disclosures across nations. They reveal a positive influence of the degree of government openness (political culture), quality of public administration and management and prior experience with International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) in the public sector on this level, whereas government financial condition is a nonsignificant factor.
Practical implications
The research findings are potentially relevant to academics, researchers, practitioners, standard-setters and government policymakers. By examining the influencing factors of IPSAS disclosure level, this paper paves the way for further investigation of this topic with a more extensive set of micro and macroeconomic variables whether at the central or local government level in other jurisdictions
Originality/value
This study provides new insights into the assessment of the transparency and completeness of government accrual-based financial statements. Based on the contingency theory, this paper is the first to empirically investigate the factors affecting the level of disclosure under accrual-based IPSAS by central government entities in a cross-country analysis.
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This paper investigates to what extent public sector entities (PSEs) in developing countries (DCs) are compliant with IPSAS and examines the impact of the socioeconomic and…
Abstract
Purpose
This paper investigates to what extent public sector entities (PSEs) in developing countries (DCs) are compliant with IPSAS and examines the impact of the socioeconomic and politico-administrative environment on this compliance during the period 2015–2018.
Design/methodology/approach
This research develops a self-constructed checklist consisting of 116 disclosure items from five accrual-based IPSAS (IPSASs, 1, 2, 3, 14 and 24) and applies panel regressions for a sample of 500 entity-year observations of 125 PSEs.
Findings
The study results show a high level of disparity in the degree of compliance with IPSAS amongst DCs' governments, with an overall average level of 61%. They reveal that compliance with IPSAS is positively influenced by the level of citizen wealth, government political culture (degree of government openness) and the quality of public administration, whereas jurisdiction size, government financial condition and political competition are non-significant factors.
Practical implications
This research provides researchers and practitioners with a comprehensive framework for understanding the extent of New Public Management reforms in DCs with a focus on International Public Sector Accounting Standards implementation. It might assist policymakers in their accounting strategies and might be a signal for DCs with low compliance to tap lessons from governments with successful experience of IPSAS adoption.
Originality/value
Focusing on DCs' context, this paper brings new insights into the analysis of socioeconomic and politico-administrative incentives for government compliance with IPSAS. It is the first to investigate the impact of citizen wealth and political competition on IPSAS disclosures.
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Yosra Mnif Sellami and Yosra Gafsi
The purpose of this paper is to examine the transparency and completeness of government financial reporting in sub-Saharan African countries by assessing the extent of compliance…
Abstract
Purpose
The purpose of this paper is to examine the transparency and completeness of government financial reporting in sub-Saharan African countries by assessing the extent of compliance with IPSAS disclosures and to investigate the impact of the strength of public management systems (SPMS) and accounting education on this level.
Design/methodology/approach
This research develops a self-constructed disclosure index from content analysis and applies panel regressions for a sample of 60 sub-Saharan African government entities during the period 2014–2017.
Findings
The study results indicate that IPSAS disclosure levels significantly vary across sub-Saharan African governments. They reveal a positive effect of the SPMS and accounting education on the extent of compliance with IPSAS in this region.
Practical implications
The study findings are of interest to practitioners, researchers, government policy makers, supervisory authorities and professional bodies. By focusing on the effect of the SPMS and accounting education on IPSAS disclosure level, this paper leaves room for future research to investigate other relevant factors associated with the compliance with these standards whether in sub-Saharan Africa or in other parts of the world.
Originality/value
This paper gives new insights into the assessment of the quality and transparency of government financial reporting in sub-Saharan Africa by examining the extent of compliance with IPSAS in this region. It is the first to investigate the impact of the SPMS and accounting education on this level.
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Saheed Adekunle Muraina and Kabiru Isa Dandago
The purpose of this paper is to examine the effects of the implementation of the International Public Sector Accounting Standards (IPSAS) on Nigeria’s financial reporting quality.
Abstract
Purpose
The purpose of this paper is to examine the effects of the implementation of the International Public Sector Accounting Standards (IPSAS) on Nigeria’s financial reporting quality.
Design/methodology/approach
The study employed a survey research design to determine the effects of the implementation of the IPSAS on Nigeria’s financial reporting quality. Partial Least Square 3(SmartPLS 3) technique of analysis was applied to achieve the research objective.
Findings
The study found that accountability positively and significantly affects the quality of financial reporting in Nigeria. Specifically, IPSAS has improved the level of accountability, which in turn improved Nigeria’s financial reporting quality.
Research limitations
The study only explored two explanatory variables whereas other variables such as transparency, corruption minimization, comparability and faithful representation were not considered in this study. It is, therefore, recommended that further studies could expand the scope to cover some other variables not included in this paper.
Practical implications
IPSAS-Accrual has engendered the Nigerian Government to launch the Asset Tracking and Management Project (ATMProject) in order to easily track its assets for the purpose of accountability. Thus, accountability was discovered in this study to be the most essential factor to enhance the quality of financial reporting using accrual-based IPSAS in Nigeria.
Social implications
Accountability will impact positively on the lives of Nigerians in relation to the application of public funds to impact on the lives of the masses.
Originality/value
The statistical significance of accountability found in this study, using partial least square technique of data analysis, will further enhance financial integrity in the country.
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Walter Cameron Malau, Paschal Ohalehi, Eldin Soha Badr and Kemi Yekini
Financial transactions fraud (FTF) and financial statements fraud (FSF) grew exponentially during the past decades coupled with complex and sophisticated technological…
Abstract
Purpose
Financial transactions fraud (FTF) and financial statements fraud (FSF) grew exponentially during the past decades coupled with complex and sophisticated technological developments. This study aims to investigate the practitioners’ interpretation of fraud with recurring audit issues in the disclaimer audit opinions (DAOs) reports within the Solomon Islands public sector (SIPS).
Design/methodology/approach
The empirical study involves qualitative data analysis. The analysis alongside theoretical developments is informed by the “fraud triangle” theory.
Findings
The research results revealed the practitioners’ acknowledgement of FSF, FTF and fraud in the SIPS, as generally prevalent and aligned to some components of the fraud triangle theory. This study is sceptic about the good intentions of the International Public-Sector Accounting Standards –Cash-basis framework and favours the Provincial Government Act 1997 and the Public Finance Management Act 2013 requirements. It further suggests that fraud is positively linked to repeated audited report issues and the executive management when DAOs issues appear repeatedly in annual audit reports.
Originality/value
This study contributes to the literature on fraud and attempts to link the interpretation of fraud with recurring audit issues in the DAOs reports in the SIPS. It views fraud awareness and knowledge from the perspective of the audit practitioner. There is an increasing need to understand how fraud knowledge impacts decision making and the actions of auditors and others, an area that is underdeveloped.
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Michalis Bekiaris and Thekla Paraponti
The purpose of this study is to provide an overview of the adoption status of International Public Sector Accounting Standards (IPSAS) within Organisation for Economic…
Abstract
Purpose
The purpose of this study is to provide an overview of the adoption status of International Public Sector Accounting Standards (IPSAS) within Organisation for Economic Co-operation and Development (OECD) member states at the country level and highlight the main factors impeding the process of accounting harmonisation.
Design/methodology/approach
This study uses factor analysis (FA) to assess the status of IPSAS adoption as the weighted average of the adoption levels of three categories: central government, sub-national governments, and country-level consolidation. Based on this assessment, the sample is classified into three levels of IPSAS adoption: high, medium, and low.
Findings
The findings suggest a slow trend towards accounting harmonisation and an increasing influence of IPSAS. However, evidence also suggests significant limitations in the adoption of the standards, mainly attributed to national adaptations, which undermine the ongoing efforts for standardisation.
Originality/value
This study provides an integrated view of IPSAS adoption at the country level and sheds light on a different aspect of the international harmonisation process, which is missing from the literature.
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Natalia Aversano, Johan Christiaens, Paolo Tartaglia Polcini and Giuseppe Sannino
Taking into consideration the lively debate about recognition, measurement, and disclosure criteria for heritage assets (HA) in financial reporting, the purpose of this paper is…
Abstract
Purpose
Taking into consideration the lively debate about recognition, measurement, and disclosure criteria for heritage assets (HA) in financial reporting, the purpose of this paper is to examine the comment letters submitted by governmental organizations regarding the consultation paper (CP) on HA in order to understand what is the position of the governmental organizations in relation to critical issues of the accounting and financial reporting of HA.
Design/methodology/approach
From a methodological point of view, a content analysis was performed. First, the responses were classified according to level of agreement with the 13 items included in the CP on HA; second, the arguments adduced by respondents in supporting or contradicting the proposed approaches and definitions have been investigated.
Findings
The majority of responses came from countries with relevant differences in culture, administrative traditions and accounting systems. Governmental organizations strongly agreed with the recognition of heritage items as “assets” in financial reporting, while conflicting positions on measuring bases were identified.
Originality/value
This study is one of the few studies based on the content of the comment letters received in response to the CP on HA. The present study can also give an idea of the content of the future IPSAS on HA. Moreover, it is the first study attempting to enrich the debate on governmental organizations’ participation to the IPSAS standard-setting process.
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Michalis Bekiaris and Antonia Markogiannopoulou
This paper examines the enterprise resource planning (ERP) systems of 27 European central governments and the governments' respective information technology (IT) reforms…
Abstract
Purpose
This paper examines the enterprise resource planning (ERP) systems of 27 European central governments and the governments' respective information technology (IT) reforms, facilitator role and association with accrual accounting reforms as premise of the International Public Sector Accounting Standards (IPSAS).
Design/methodology/approach
This paper presents a qualitative and content analysis of 27 European Union (EU) member states (MSs) regarding the states' IT and accounting maturity in association with accrual accounting as breeding ground for IPSAS convergence based on published surveys on behalf of Eurostat, web data and emails collected from authorized officials.
Findings
This paper has found that (1) increased accounting and IT maturity scores of central governments are associated with the establishment or upgrade of ERP systems; (2) ERP systems prove to facilitate and support accrual accounting adoption; (3) in majority, EU MSs adopt similar ERP vendors to implement accrual accounting reforms; (4) with prevalence among ERP vendors, the Systems Application Products (SAP) ERP software proves to be a success story toward public sector accounting (PSA) reforms.
Research limitations/implications
Respective information on the ERP systems' facilitation to financial accounting reforms is collected only for 17 central governments.
Originality/value
This paper highlights the facilitation of ERP systems as reform drivers to accrual accounting change of EU MSs, through IT modernization. This paper links the ERP practices with specific ERP vendors pointing out the vendors' similarities. This paper presents examples of European ERP reforms and sets the reforms as reference for central governments that wish to embark on ERP and accrual accounting reforms.
Pei-Chi Kelly Hsiao, Mary Low and Tom Scott
This paper aims to examine the extent to which performance indicators (PIs) reported by New Zealand (NZ) higher education institutions (HEIs) correspond with accounting standards…
Abstract
Purpose
This paper aims to examine the extent to which performance indicators (PIs) reported by New Zealand (NZ) higher education institutions (HEIs) correspond with accounting standards and guidance and the effects issuance of principles-based authoritative guidance and early adoption of Public Benefit Entity Financial Reporting Standard 48 (PBE FRS 48) have on the PIs disclosed.
Design/methodology/approach
Using a content analysis index derived from accounting standards and guidance, we conduct a longitudinal assessment of the 2016 and 2019 statements of service performance published by 22 NZ HEIs.
Findings
The PIs reported extend beyond the service performance elements proposed by standard-setters. Despite few indicators on intermediate and broader outcomes, the measures disclosed by HEIs are reflective of their role in the NZ economy and the national Tertiary Education Strategy. The results show that principles-based authoritative guidance and early adoption of PBE FRS 48 influence the focus and type of measures disclosed, while there is no evidence of improvements in the reporting of impacts, outcomes and information useful for performance evaluation.
Practical implications
This paper provides timely insights for standard-setters and regulators on the influence principles-based accounting standards and guidance have on non-financial reporting practices.
Originality/value
This study contributes to the scant literature on HEIs’ service performance reporting. It presents a model for conceptualising HEIs’ PIs that can be used as a basis for future research on non-financial reporting. It also reflects on the tension between accountability and “accountingisation”, suggesting that, although the PIs reported support formal accountability, they do not communicate whether HEIs’ activities and outputs meet their social purpose.
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Ricardo Rocha de Azevedo, André Feliciano Lino, André Carlos Busanelli de Aquino and Túlio César Pereira Machado-Martins
The successful implementation of International Public Sector Accounting Standards (IPSAS) depends on the adoption and subsequent maintenance of accrual accounting policies…
Abstract
Purpose
The successful implementation of International Public Sector Accounting Standards (IPSAS) depends on the adoption and subsequent maintenance of accrual accounting policies. Moreover, Financial Management Information Systems (FMIS) are important drivers of reforms, and their replacement might disrupt the execution of accrual accounting policies. This paper aims to analyze the effects of FMIS replacement (or maintenance) on the retention of accrual accounting policies in Brazilian local governments.
Design/methodology/approach
The research adopts a sequential mixed-methods approach, starting with a quantitative analysis of the presence of accrual accounting policies in local governments and the effects of FMIS replacement. Next, a qualitative analysis is conducted with a survey, documents and interviews to observe the FMIS replacement process. Our analysis focuses on local governments from one state in Brazil, but the context is highly transferable to other states, as the same procurement law and accounting regulations apply.
Findings
FMIS replacement may reduce accounting policies retention; consequently, public procurement regulation may induce a public procurement context in which the IPSAS project would find more difficulties to prosper.
Research limitations/implications
This research contributes to the IPSAS literature by examining the phenomenon of accounting policies retention or persistence, as one should not take it for granted that an adopted accounting procedure will be sustained over time. The analysis argues that FMIS replacement due to compulsory rebidding should be carefully considered.
Practical implications
Promoters of accounting reforms may consider the regulation of contracting out for FMIS a relevant issue to the institutionalization of accounting policies.
Originality/value
The analysis innovates by linking IPSAS accounting reform to the contracting out of FMIS.
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