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Purpose – The purpose of this article is to examine the contextual variables that influence the pace of public sector reforms through the adoption of accrual accounting for the Indonesian public sector.

Design/methodology/approach – The study employs a historically informed study based on a modified version of the Luder's (1992) Contingency Model (LCM). The data are drawn from official documents issued by the Indonesian government about reporting system for the public sector in the country and interviews with the key figures involved in the public sector accounting reforms in Indonesia. The study also uses publicly available information addressing the recent progress in the implementation of the accrual accounting system in the Indonesian public sector.

Key findings – The adoption of accrual accounting in the Indonesian public sector was stimulated by the economic crisis, prodemocratic movements, and international pressures for the reform of the public sector. However, the public sector accounting reforms in the country are confronted with significant implementation barriers which include legal issues, the lack of political supports, and skilled human resources. These barriers in turn threaten the intended purposes to be achieved through the greater economic and public sector reforms in the newly democratic Indonesia.

Research limitations/implications – The arguments of the study should be understood in the context of the institutional setting of Indonesia as a developing country. Nonetheless, the findings of this study show an example of the complexity faced through the use of the private sector accounting practice in the public sector context.

Originality/value – The findings of the study support the notion that the nature of legal system, political support, and human resource capacity influence the extent to which an accounting system is adopted in the public sector.

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 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.

This study examines the association between the use of a package of contemporary and a package of traditional management accounting practices with organizational change and organizational performance.

Data were collected based on a mail survey distributed to a sample of 740 public sector organizations.

The findings indicate that while the prevalence of traditional practices is still dominant, such practices were not associated with organizational change or performance. Rather, those organizations that use contemporary management accounting practices to a greater extent experienced greater change and stronger performance.

The findings suggest that contemporary management accounting practices can assist public sector practitioners in improving performance and promoting organizational change.

The study provides an empirical insight into the use and effectiveness of management accounting practices in the public sector. The study provides the first empirical analysis of the effect of using a package of management accounting practices in the public sector.

Purpose – This chapter examines developments in public sector accounting practices using evidence from a developing country (Ghana), and explores the motivations for such developments from post-independence to date. This stems from the limited research in public sector accounting particularly on developing countries despite the rich empirical context that they provide for the global research community.

Design/methodology/approach – Advocating for institutional theory, data was gathered from multiple sources including interviews, discussions and documents to achieve the above objectives.

Findings – Evidence gathered shows gradual shift from cash accounting to accrual accounting practices (modified), including computerization of the entire public sector accounting and reporting processes. Indeed, the World Bank and IMF sponsored reform (PUFMARP) instigated many of the major developments in the public sector accounting practices, including the adoption of accrual accounting and deployment of integrated financial management information system.

Research limitations/implications – Findings on developments during the post-colonial period were only based on the analysis of few documentary sources.

Originality/value – The study contributes to the limited studies in public sector accounting from developing countries and Africa in particular. It also extends the application of institutional theory in public sector accounting research.

Implications – Findings inform practitioners and policy-makers on the context-specific factors worth considering in the adoption of public sector accounting practices.

The purpose of this paper is to explore the challenges and influential factors experienced in the development of public sector accounting reforms in the emerging economy of Sri Lanka. The reforms aim to improve public governance and transparency while reducing corruption and dishonesty.

Qualitative (thematic) analysis has been employed by using both primary and secondary data. Primary data was obtained by interviewing selected respondents from public sector organisations in Sri Lanka. The respondents were selected by using an expert purposive sampling technique. Apart from the primary data, secondary data such as government reports, relevant literature and paper articles was also analysed in order to produce more robust findings.

The findings indicate that technological and cultural factors have influenced accounting reforms in the public sector in Sri Lanka. In addition, the politicisation and bureaucracy of the public sector as well as sluggish attitudes towards costs have served as prominent barriers to efficient implementation of the reforms.

This study was limited in terms of generalisation because of relatively small sample sizes. A larger sample with more diversity could have enhanced the generalisation of the results which could serve as direction for further research.

This paper is intended to fill a gap in the existing literature on public sector accounting reforms in the context of less developed or emerging countries. It is hopefully valuable for both policy makers and practitioners by allowing them to view the development, challenges and influential aspects of the implementation of New Public Management (NPM) in Sri Lanka in order that they will be able to make informed decisions about adopting more efficient NPM practices to enhance the country’s competitive advantages.

This introductory chapter elaborates on the tricky issue of measurement in public sector financial reporting, which arises due to the particular features of the public sector when compared to the private sector. It provides a summary of the book chapters, highlighting the theoretical/practical frameworks used, methodologies and conclusions. Three themes are identified in the book, namely, (a) frameworks and methodologies; (b) measuring and reporting the elements in financial statements; and (c) heritage. This chapter identifies important avenues for further research.

Recognition, measurement and disclosure of public sector assets constitute relevant matters for national and international public sector accounting standard-setting. This chapter develops a theoretical analysis drawing upon a dualistic approach contrasting current value and historical cost accounting models. Accordingly, the latter should be adapted and then preferred to cope with public sector specificities, with a view to providing information for and enforcing accountability to citizens and their political representatives. Drawing upon this theoretical setting, our analysis develops a consistent design for the overarching conceptual framework for assets in general, providing illustrative examples for specific categories such as financial, heritage, natural and military assets.

Heritage assets (HAs) are important goods or properties that define a country’s culture, history, and identity. Public sector entities are the primary custodians of a nation’s heritage properties; however, many local museums and historic houses are managed by private not-for-profit (NFP) organisations that essentially act to conserve these heritage places.

Through a documentary analysis, this chapter aims to investigate the points of convergence and the differences between accounting policies for governmental heritage and private NFP organisations.

The study demonstrates that even private NFP entities present the same characteristics as public sector ones in the accounting of heritage goods and that there are certain accounting standards being equally applicable; therefore, the accounting policies for governmental heritage are in accordance with the accounting policies for NFP organisations such as museums, art galleries, charities, churches, for their heritage goods.

This study analyses to what extent politicians use public sector entities' financial statements along with the politicians' perceptions of the usefulness of such statements in the politicians' decision-making. The authors analyze financial statements' use and usefulness when the statements are prepared on a modified accrual basis and in the setting where there is the intention of full accrual accounting adoption. In addition, this study provides information about the use of the individual components of financial statements and investigates the reasons why the statements may not be used.

This study was conducted using a questionnaire. The authors surveyed politicians that are members of Croatian public sector bodies. To conduct this research, the politicians were contacted by telephone over the period from February to April 2022.

The findings of this study are of potential interest to researchers, regulators and policy makers. The findings show that most politicians use financial statements, but the politicians' perception of the statements' usefulness when the statements are prepared on a modified accrual accounting basis is greater than the politicians' actual use of the statements. The findings also show that in the process of making decisions, politicians use the selected financial statements that contain information of interest to the politicians; that the politicians tend to gravitate to the use of reports on revenue, expenses, receipts and expenditure prepared on modified accrual bases which are closer to budgetary reporting; that the politicians use the information that supports the politicians' sphere of responsibility as enforced by legislation.

This study provides insights into the use and usefulness of financial statements in public sector setting where modified accrual accounting is used to prepare the statements and reports. This study provides additional evidence on the significance of legal setting to the financial reporting in public sector.