A contingency theory perspective on the analysis of central government accounting disclosure under International Public Sector Accounting Standards (IPSAS)

Abstract

Purpose The purpose of this paper is to assess the extent of central government financial information disclosed in accordance with accrual-based International Public Sector Accounting Standards (IPSAS) and to investigate the environmental factors affecting this level, drawing on the contingency theory framework. Design/methodology/approach This study uses a self-constructed checklist of 116 items to measure the IPSAS disclosure level by 100 public sector entities from different countries across the globe during the period 2015–2017. Panel regressions have been used. Findings The results show significant differences in compliance levels with IPSAS disclosures across nations. They reveal a positive influence of the degree of government openness (political culture), quality of public administration and management and prior experience with International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) in the public sector on this level, whereas government financial condition is a nonsignificant factor. Practical implications The research findings are potentially relevant to academics, researchers, practitioners, standard-setters and government policymakers. By examining the influencing factors of IPSAS disclosure level, this paper paves the way for further investigation of this topic with a more extensive set of micro and macroeconomic variables whether at the central or local government level in other jurisdictions Originality/value This study provides new insights into the assessment of the transparency and completeness of government accrual-based financial statements. Based on the contingency theory, this paper is the first to empirically investigate the factors affecting the level of disclosure under accrual-based IPSAS by central government entities in a cross-country analysis.

Analysis of local government accounting disclosure based on international public sector accounting standards (IPSAS)

“…Luder (1992) also stated that preparing financial statements with prior experience with IFRS in the public sector with the existence of IFRS-based accounting would improve financial performance in the public sector. It corroborates with research by Mnif & Gafsi (2020)…”

Analysis of local government accounting disclosure based on international public sector accounting standards (IPSAS)

“…Luder (1992) also stated that preparing financial statements with prior experience with IFRS in the public sector with the existence of IFRS-based accounting would improve financial performance in the public sector. It corroborates with research by Mnif & Gafsi (2020)…”

Financial Statements Disclosure On Indonesian Local Government : IPSAS And PSAP Disclosure Approach

“…The results of this study support previous research conducted by Mnif & Gafsi, (2020), which showed that the level of government openness (political culture) has a positive effect on IPSAS disclosure. Government openness fosters freedom of information and allows various stakeholders to oversee government actions in disclosing financial statements that are more transparent and comply with regulations to meet stakeholder expectations.…”

The influence of the socioeconomic and politico-administrative environment on the extent of compliance with IPSAS in developing countries

“…In this regard, compliance with IPSAS constitutes a relevant tool to fulfill the government's aspirations of promoting information freedom and fostering citizen participation in the decision-making processes. This result is consistent with Mnif and Gafsi (2020). Unlike previous studies, this paper empirically investigates the relationship between government political culture and IPSAS disclosures, exclusively in the context of DCs.…”

Analysis of local government accounting disclosure based on international public sector accounting standards (IPSAS)

“…Luder (1992) also stated that preparing financial statements with prior experience with IFRS in the public sector with the existence of IFRS-based accounting would improve financial performance in the public sector. It corroborates with research by Mnif & Gafsi (2020)…”

Financial Statements Disclosure On Indonesian Local Government : IPSAS And PSAP Disclosure Approach

“…The results of this study support previous research conducted by Mnif & Gafsi, (2020), which showed that the level of government openness (political culture) has a positive effect on IPSAS disclosure. Government openness fosters freedom of information and allows various stakeholders to oversee government actions in disclosing financial statements that are more transparent and comply with regulations to meet stakeholder expectations.…”

The influence of the socioeconomic and politico-administrative environment on the extent of compliance with IPSAS in developing countries

“…In this regard, compliance with IPSAS constitutes a relevant tool to fulfill the government's aspirations of promoting information freedom and fostering citizen participation in the decision-making processes. This result is consistent with Mnif and Gafsi (2020). Unlike previous studies, this paper empirically investigates the relationship between government political culture and IPSAS disclosures, exclusively in the context of DCs.…”

Analysis of local government accounting disclosure based on international public sector accounting standards (IPSAS)

“…Luder (1992) also stated that preparing financial statements with prior experience with IFRS in the public sector with the existence of IFRS-based accounting would improve financial performance in the public sector. It corroborates with research by Mnif & Gafsi (2020)…”

Financial Statements Disclosure On Indonesian Local Government : IPSAS And PSAP Disclosure Approach

“…The results of this study support previous research conducted by Mnif & Gafsi, (2020), which showed that the level of government openness (political culture) has a positive effect on IPSAS disclosure. Government openness fosters freedom of information and allows various stakeholders to oversee government actions in disclosing financial statements that are more transparent and comply with regulations to meet stakeholder expectations.…”

The influence of the socioeconomic and politico-administrative environment on the extent of compliance with IPSAS in developing countries

“…In this regard, compliance with IPSAS constitutes a relevant tool to fulfill the government's aspirations of promoting information freedom and fostering citizen participation in the decision-making processes. This result is consistent with Mnif and Gafsi (2020). Unlike previous studies, this paper empirically investigates the relationship between government political culture and IPSAS disclosures, exclusively in the context of DCs.…”