Международный журнал бухгалтерских исследований

Абстрактный

ASSESSMENT OF THE CHALLENGES AND BENEFITS OF ADOPTING INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS IN DEVELOPING COUNTRIES THE CASE OF ETHIOPIA

Samuel Atsibha Gebreyesus

The review assesses the benefits and challenges of adopting International Public Sector Accounting in Ethiopia in public sectors. The objective of the study was to provide an insight on the contribution of IPSAS in enhancing quality, consistency and comparability of governmental financial information within and between jurisdictions. IPSAS are intended to apply to general purpose financial reports. The methods used for the study were document analysis and interview with concerned officials of accounting and auditing board of Ethiopia for triangulation. The results show that the adoption of IPSAS enhances level of accountability and transparency of managements by providing timely and clear annual financial reports. Unavailability of adequate professionals’ staffs in the areas of asset valuation and public sector accounting, lack of budget for training of staffs, difficulties in recognition, measurement and valuation of assets, lack of compiled data, and lack of management commitment are challenges in the implementation of IPSAS in public sectors. The government higher officials should be committed to implement IPSAS to enhance the quality and comparability of financial reports, the government should give emphasis to implement IPSAS to attract foreign direct investment, AABE should assist public sectors by providing training and consultancy in the adoption process, the ministry of education should revised the curriculum of the accounting courses by incorporate PSAS.