Financial reporting standards for the public sector: New Zealand's 21st-century experience

Abstract

New Zealand was seen as world-leading when public sector financial reports were prepared using sector-neutral accounting standards from 1995 onwards. The decision in 2002 to adopt IFRS was disruptive, effecting new understandings of 'sector-neutral', and the standard-setter's approach was 2 unsuccessful in meeting public sector users' needs. The development of a new strategy finalised in 2012 has created a multi-standards framework including adapted IPSASB standards applicable from 1 July 2014. While neutrality is still prized, it is within a framework of meeting users' needs. This paper traces the influences expediting these changes.

The enabling role of institutional entrepreneurs in the adoption of IPSAS within a transitional economy: The case of Estonia

“…The findings therefore show that Estonia's choice to adopt IPSAS is related to the uselessness of “reinventing the wheel,” which is in line with results previously found in other European countries by Christiaens et al () and also in New Zealand (Cordery & Simpkins, ). In contrast to previous studies indicating that small countries are more susceptible to mimetic forces to gain credibility and legitimacy (Jones & Caruana, ), the findings indicate that mimetic isomorphic mechanisms (DiMaggio & Powell, ) were not relevant in the Estonian case.…”

“…The IPSAS are mainly defined on the basis of the relevant International Accounting Standards for the private sector, that is, the International Financial Reporting Standards (IAS/IFRS) issued by the International Accounting Standards Board (IASB; Benito, Brusca, & Montesinos, ; Budding, Grossi, & Tagesson, ; Chan, ; Cordery & Simpkins, ; Jones, ), to the extent that the requirements of those IFRS are also relevant to the public sector (IFAC, ).…”

Financial reporting by charities: a matched case study analysis from four countries

“…In England, the RSPCA Sheffield is unincorporated. This is likely to reflect the English prioritisation of regulation over legal form (Cordery et al, 2016). Nevertheless, Cordery et al (2016) argue that NPOs should incorporate for effective operation, to clarify the reporting entity and who bears liabilities.…”

New development: The conceptual underpinnings of international public sector accounting

“…Recently, however, New Zealand has moved to International Public Sector Accounting Standards (IPSAS), following the Auditor General's criticism of the modifications to IFRS for public sector purposes (Auditor General, 2009, see also Cordery and Simpkins, 2016). Australia and the UK have steadfastly adhered to IFRS modified as necessary for a public sector context.…”