Introduction: The Gordian knot of public sector accounting and the role of the International Public Sector Accounting Standards
| Author | Sandra Cohen,Eugenio Caperchione,Isabel Brusca,Francesca Manes-Rossi |
| DOI | 10.1177/0020852316665048 |
| Published date | 01 December 2016 |
| Date | 01 December 2016 |
| Subject Matter | Symposium on The Gordian knot of public sector accounting and the role of IPSASEditorial |
Review of
Administrative
Editorial
Sciences
International Review of
Administrative Sciences
2016, Vol. 82(4) 718–723
Introduction: The Gordian knot of
! The Author(s) 2016
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public sector accounting and the
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DOI: 10.1177/0020852316665048
role of the International Public
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Sector Accounting Standards
Francesca Manes-Rossi
University of Salerno, Italy
Sandra Cohen
Athens University of Economics and Business, Greece
Eugenio Caperchione
Modena and Reggio Emilia University, Italy
Isabel Brusca
University of Zaragoza, Spain
The international framework: accrual accounting prevalence
European countries, as well as other countries worldwide, have recently witnessed
profound changes in their accounting systems at all levels of government. These
reforms have at their core the need for high-quality and relevant financial infor-
mation that would eventually be used for transparency and accountability pur-
poses. They have mainly been inspired by the private sector and they
encapsulate almost unanimously the application of accrual accounting (Lapsley
et al., 2009). In their effort to develop a robust accrual accounting reference frame-
work, several countries have considered the use of the International Public Sector
Accounting Standards (IPSAS) as a benchmark of high-quality standards that
enjoys international acceptance. Even if they would not adopt IPSAS, developing
IPSAS-like standards would automatically elevate the perceived suitability and
quality of their national standards. From another point of view, as the
International Public Sector Accounting Standards Board (IPSASB) has no
formal authority in imposing them, the adoption of the IPSAS by local and central
governments would be completely voluntary. However, early voluntary adoptions
could influence other countries around the world and, in this sense, IPSAS served
Corresponding author:
Francesca Manes-Rossi, Department of Management and Innovation Systems, University of Salerno, Via
Giovanni Paolo II, 132, I- 84084 Fisciano SA, Italy.
Email: fmanesrossi@unisa.it
Manes-Rossi et al.
719
as an important stimulus for the harmonization of financial accounting systems in
the public sector (Benito et al., 2007).
Academia has been active in assessing public sector accounting reforms. Apart
from supporters of the transition to accrual accounting, some scholars highlight
that accrual-based accounting would not necessarily be consistent with the main
characteristic of public entities (Christiaens and Rommel, 2008; Mack and Ryan,
2006). However, the criticism against accrual accounting has recently decreased,
although it has not disappeared judging by the number of papers raising this con-
cern. The main focus of the discussion is now placed not on the question as to
whether accrual accounting actually fits the public sector, but on the choice of the
most adequate set of accrual accounting standards. In this new debate, the IPSAS
hold a predominant position.
At the institutional level, the European Commission and other international and
supranational organizations (such as the Organisation for Economic Co-operation
and Development [OECD], the North Atlantic Treaty Organization [NATO], the
United Nations and Interpol) have promoted and supported the modernization of
their financial management and accountability. Furthermore, all of them have
adopted accrual...
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