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Assessing the Impact of IPSAS on Financial Reporting and Public Management in Greece

Author

Listed:
  • Olympia G. Gkouma

    (Department of Public Administration Panteion University of Social and Political Sciences)

  • John Filos

    (Panteion University of Social and Political Sciences)

Abstract

The adoption of International Public Sector Accounting Standards (IPSAS) is gaining momentum across the world. Greece initiated a general financial management reform program which includes the transformation of financial accounting. The public sector in Greece adopted IPSAS-based standards (P.D.54/2018) in June 2018. The transition from modified cash accounting to accruals accounting brought the country one step closer to IPSAS. P.D.54/2018 resulted in material adjustments on the state accounts. However, public management was not able to assert full compliance due to lack of necessary accounting records. The objective of this study is to assess the impact of IPSAS on financial reporting and public management in Greece and discuss the anticipated benefits and the challenges to be encountered in the transition process. The results of this study indicate that Greece is at a premature stage regarding IPSAS. Meanwhile, research regarding the implementation of IPSAS in Greece appears to be limited. The adoption of IPSAS is expected to have significant impact on the financial statements of Greece due to the gap between IPSAS accounting principles and current accounting practices. The move towards IPSAS has the potential to radically change the practice of accounting and financial reporting in public sector. Nonetheless, it appears that the implementation of IPSAS has to overcome several challenges in order to be successful and utilise these benefits. The study provides useful insights on the transition to IPSAS for all the parties engaged in public administration reform as well as to countries that are in process or planning to adopt IPSAS.

Suggested Citation

  • Olympia G. Gkouma & John Filos, 2022. "Assessing the Impact of IPSAS on Financial Reporting and Public Management in Greece," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 72(1-2), pages 56-79, January-J.
    • Handle: RePEc:spd:journl:v:72:y:2022:i:1-2:p:56-79
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    References listed on IDEAS

    as
    1. Josette Caruana, 2016. "Debate: Would IPSAS help Greece? Or would they be the ‘Emperor's New Clothes’?," Public Money & Management, Taylor & Francis Journals, vol. 36(3), pages 161-162, April.
    2. Evangelos Chytis & Ioannis Georgopoulos & Stergios Tasios & Ioanna Vrodou, 2020. "Accounting Reform and IPSAS Adoption in Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 165-184.
    3. Sandra Cohen & Sotiris Karatzimas & George Venieris, 2015. "The informative role of accounting standards in privatising state-owned property: comparing Greek Governmental Accounting Standards and IPSAS," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 17(1), pages 51-62.
    4. Sandra Cohen & Sotirios Karatzimas, 2016. "Modernizing government accounting standards in Greece: a case of ‘garbage can’ decision-making," Public Money & Management, Taylor & Francis Journals, vol. 36(3), pages 173-180, April.
    5. Sabrina Bellanca, 2014. "Budgetary Transparency in the European Union: The Role of IPSAS," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(4), pages 455-456, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International Public Sector Accounting Standards (IPSAS); Financial Reporting; Public Management; Public Accounting; Public Sector;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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