Abstract:

International organisations like the World Bank have advocated for the adoption of the international pub lic sector accounting standards (IPSAS) as part of accounting reforms in public sector institutions. Therefore, this paper seeks to add to the existing accounting literature by providing a review on IPSAS adoption in developing countries and identifying the factors driving its adoption, challenges encountered and outcomes. This paper employs a qualitative research methods approach, involving a review of papers in the Web of Science database from 2004 to November 2023. The adoption of IPSAS in developing countries has been driven by various factors, including pressure from international institutions, the need to attract funds, efforts improve accountability and transparency, the fight against corruption, the influence of governmental and professional bodies and the pursuit of legitimacy. However, there are also challenges associated with this adoption, such as a lack of educational knowledge, weak infrastructure in the public sector, resistance from various stakeholders, pressures from politicians and professionals, high implementation costs, corruption and limited resources. The consequences of implementing IPSAS include positive impacts, such as improved accountability, transparency, and governance quality, as well as unintended outcomes such as decoupling, and manipulation. This research provides a synthesis on the drivers, challenges, and outcomes of IPSAS adoption in developing countries. These findings have important implications for governments, policymakers, and regulators. In addition, this research identifies potential areas for future research.

Keywords:

IPSAS, developing countries, public sector accounting, accrual accounting, review.

JEL Codes:

H83, M48, O43, M41.

How to Cite:

Noha Alessa. IPSAS Adoption in Developing Countries: Drivers, Challenges and Outcomes . [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a51/