Browse > Article
http://dx.doi.org/10.13106/jafeb.2022.vol9.no3.0389

A Movement Towards the Accrual Based IPSAS Implementation in Developing Countries: Evidence from Jordan  

SHEHADEH, Esam (Department of Accounting, Faculty of Administrative and Financial Sciences, University of Petra)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.3, 2022 , pp. 389-397 More about this Journal
Abstract
As the Jordanian government is in the process of implementing accrual-based IPSAS, this study aims to provide academics' perspectives on the effective implementation of accrual-based IPSAS in Jordan to authorities and regulators. The findings of a survey of 124 accounting professors at Jordanian institutions reveal that adopting accrual-based IPSAS will aid in presenting the realistic financial status of governmental bodies, with various advantages to adopting accrual-based IPSAS (e.g., enhance assets and liabilities management, decision-making process, transparency, expenditures management). On the other side, we discovered that change is met with reluctance because the majority of public-sector accountants are untrained and unqualified to apply the accrual-based IPSAS. Another main challenge is the cost of implementing the accrual-based IPSAS in the Jordanian public sector is very high. To address these issues, employees should be motivated by providing suitable training programs, reward systems, and top management support and commitment to a successful transition. Finally, we suggested that Jordanian governments commit to using IPSAS in the public sector to increase residents' socioeconomic advantages. Public sectors should implement IPSASs for improved management, transparency in financial reporting, accountability, and regulatory and supervisory agencies.
Keywords
IPSAS; Accrual Based; Governmental Accounting Reforms;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 Scapens, R. W. (2006). Understanding management accounting practices: A personal journey. The British Accounting Review, 38(1), 1-30. https://doi.org/10.1016/j.bar.2005.10.002   DOI
2 Whitefield, A. A., & Savvas, P. (2016). The adoption and implementation of the international public sector accounting standards: The challenges faced by the United Nation in producing UN-IPSAS compliant financial reports in Kenya. International Journal of Finance and Accounting, 1(1), 75-91. https://doi.org/10.47604/ijfa.42   DOI
3 Stefanescu, A., & Turlea, E. (2011). Accrual accounting: A foundation for the financial reporting into the public sector entities. Annales Universitatis Apulensis: Series Oeconomica, 13(2), 309. https://doi.org/10.11235361/51.13   DOI
4 Fourie, D., Pauw, J. C., Linde, G. J. A., Visser, C. B., & Woods, G. (2009). Managing public money: Systems from the South. Johannesburg: Heinemann Publishers.
5 Affandi, M. A., Murwaningsari, E., Mayangsari, S., & Dwimulyani, S. (2020). Role of ABAS and bureaucratic reformation in improving governmental financial performance through financial decision making. The Journal of Asian Finance, Economics, and Business, 7(11), 1069-1075. http://doi.org/10.13106/jafeb.2020.vol7.no11.1069   DOI
6 Nguyen, N. T. (2020). Factors affecting responsibility accounting at public universities: Evidence from Vietnam. The Journal of Asian Finance, Economics, and Business, 7(4), 275-286. http://doi.org/10.13106/jafeb.2020.vol7.no4.275   DOI
7 Christiaens, J., & Rommel, J. (2008). Accrual accounting reforms: only for a business like (parts of) governments. Financial Accountability & Management, 24(1), 59-75. https://dx.doi.org/ 10.1111/j.1468-0408.2008.00443.x   DOI
8 Stamatiadis, F. (2009). Investigating the governmental accounting reform of the Greek national health system (ESY): Some preliminary evidence. International Journal on Governmental Financial Management, 9(2), 73-97. https://ssrn.com/abstract=1529306
9 Suharsono, R. S., Nirwanto, N., & Zuhroh, D. (2020). Voluntary disclosure, financial reporting quality, and asymmetry information. The Journal of Asian Finance, Economics, and Business, 7(12), 1185-1194. http://doi.org/10.13106/jafeb.2020.vol7.no12.1185   DOI
10 Abeysinghe, C., & Samanthi, D. (2016). Accrual basis and political interest in public sector accounting. The case of a municipal council in Sri Lanka. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 53-69. http://doi.org/10.6007/IJARAFMS/v6-i3/2161   DOI
11 Diamond, J. (2002). Performance budgeting: Is accrual accounting required (Working Paper, no. 02/240). Washington D.C.: International Monetary Fund. https://doi.org/10.5089/9781451875805.001   DOI
12 Bac, A. (2003). Reforming governmental accounting and budgeting in Europe. Germany: Fachverlag Moderne Wirtschaft.
13 Brusca, I., Gomez-villegas, M., & Montesinos, V. (2016). Public financial management reforms: The role of IPSAS in Latin-America. Public Administration and Development, 36(1), 51-64. http://doi.org/10.1002/pad.1747   DOI
14 Christensen, M. (2002). Accrual accounting in the public sector: The case of the New South Wales government. Accounting History, 7(2), 93-124. https://doi.org/10.1177/103237320200700205   DOI
15 FEE. (2007). Accrual accounting in the public sector. Europe: FEE Public Sector Committee.
16 Hepworth, N. (2003). Preconditions for successful implementation of accrual accounting in central government. Public Money & Management, 23(1), 37-44. http://doi.org/10.1111/1467-9302.00339   DOI
17 IFAC. (2003). Transition to the accrual basis of accounting: Guidance for governments and government entities. New York: International Federation of Accountants.
18 IFAC. (2000). Study 11-Government Financial Reporting: Accounting Issues and Practices. New York: IFAC.
19 Tawiah, V. (2021). The impact of IPSAS adoption on corruption in developing countries. Financial Accountability & Management, 21, 33-47. https://doi.org/10.1111/faam.12288   DOI
20 IFAC. (2011). IFAC handbook of international public sector accounting pronouncements. New York: IFAC.
21 Painter, M. (2006). Thaksinisation or managerialism? Reforming the Thai bureaucracy. Journal of Contemporary Asia, 36(1), 26-47. https://doi.org/10.1080/00472330680000031   DOI
22 Flynn, M. S., Moretti, D., & Cavanagh, J. (2016). Implementing accrual accounting in the public sector. Washington DC: International Monetary Fund.
23 Aggestam, C. (2010). A project management perspective on the adoption of accrual-based IPSAS. International Journal of Government Financial Management, 10(2), 49. http://doi.org/10.1111/faam.12265   DOI
24 Caruana, J. (2021). The proposed IPSAS on measurement for public sector financial reporting-recycling or reiteration? Public Money & Management, 41(3), 184-191. https://doi.org/10.1080/09540962.2021.1873594   DOI
25 Obara, L. C., & Nangih, E. (2017). International public sector accounting standards (IPSAS) adoption and governmental financial reporting in Nigeria: An empirical investigation. Journal of Advance in Social Science and Humanities, 2395, 6542. https://doi.org/10.15520/jassh301184   DOI
26 Hyndman, N., & Connolly, C. (2005). The impact of introducing resource accounting in Northern Ireland. ACCA: London.
27 IFAC. (2017). Accrual practices and reform expectations in the Caribbean. New York: IFAC.
28 Khan, A., & Mayes, S. (2009). Transition to accrual accounting. Technical Notes and Manuals, 2009(002), 5-11. https://doi.org/10.5089/9781462371730.005   DOI
29 Mulyani, S., Puspitasari, E., & Yunita, D. H. (2018). Analysis of the critical factors in supporting the implementation of accrual-based accounting in the local government. Review of Integrative Business and Economics Research, 7, 183-199. https://sibresearch.org/uploads/3/4/0/9/34097180/riber_7-s1_sp_h17-168_183-199.pdf
30 Saleh, Z., & Pendlebury, M. W, (2006). Accruals accounting in government: Developments in Malaysia. Asia Pacific Business Review, 12(4), 421-435. https://doi.org/ 10.1080/13602380600574595   DOI
31 Jackson, A., & Lapsley, I. (2003). The diffusion of accounting practices in the new managerial public sector: International Journal of Public Sector Management, 16(5), 359-372. https://doi.org/10.1108/09513550310489304   DOI
32 Krishnan, S. R. (2021). Decision-making processes of public sector accounting reforms in India: Institutional perspectives. Financial Accountability & Management, 5, 15-29. http://doi.org/10.1111/faam.12294   DOI
33 Lau, W. T., & Mahat, F. B. (2019). Robustness of cash flow value: Investment in ASEAN. The Journal of Asian Finance, Economics, and Business, 6(2), 247-255. http://doi.org/10.13106/jafeb.2019.vol6.no2.247   DOI