The sovereign debt crisis happened nearly a decade ago, and the benefits of accrual accounting have been documented in various countries. In your view, what has delayed the implementation of accrual accounting in some countries?
The sovereign debt crisis happened nearly a decade ago, and the benefits of accrual accounting have been documented in various countries. In your view, what has delayed the implementation of accrual accounting in some countries?
Perhaps because cash-based accounting could be argued to make cash flow easier to manage in terms of when the money is accounted for.
Many countries aim to implement IPSAS but find translating this into activity often fails. Strong political commitment and a realisation that it is part of a journey that is likely to take several years is needed. Greater promotion of the benefits and best practice exemplars showing how moving to accrual accounting will help.
The recent IFAC CIPFA research demonstrates that there are many on the journey.
Examples of countries going through the transition to accruals based accounting would be useful. CIPFA could be an exemplar of good practice and provide a forum to guide public finance professionals through the process.