Harmonizing Budgeting and Accounting: The Case of Italy

Abstract

Many reforms have been undertaken in recent years; indeed, scholars have concentrated their attention on accounting techniques, financial management, and the potential for adding tools to support managerial reform agendas [1-3]. This paper extends prior research by focusing on the manner of diffusion ongoing reform process, through the adoption of the new version of Financial Management Reform process model [3]. The objective of this research is to investigate how a new accounting system has been introduced in the public sector in a processual and outcome-oriented analysis [4]. The study setting for this research is the Italian government, specifically the intermediate or regional level government, Campania Region, where a trial period is underway. The objective is to discover what obstacles and difficulties might exist when implementing a harmonized accounting and budgeting system while moving toward an accrual accounting system. The study reveals the main paradox in the implementation of the reform. This kind of study could add fresh knowledge to the literature and highlight common problems encountered when implementing accounting reforms. Additionally it could help set a standard to assist public entities in developing and implementing accounting guidelines.

Firm characteristics and compliance with IAS/IFRS

“…The development of global securities markets spread of multinational companies and increasing volume of international transactions has increased the need for comparable accounting information in annual reports (Alnaas, 2017; Boumediene et al , 2014; Bruno, 2014; Garrido et al , 2002; Nobes and Parker, 2010; Shroff et al , 2014). The need of global markets for information on economic systems is one of the most hotly debated issues in the social sciences today (Ahmadjian and Robbins, 2005).…”

EPSAS and the Unification of Public Sector Accounting Across Europe

“…The changes in the budgeting and accounting systems of sub-national governments can be interpreted as a function of the manner in which EU institutions believe that public accounting can help manage and solve the financial crisis that hit several EU countries (Biondi & Soverchia, 2014). In other words, the EU interpreted the "issue" of the crisis also as an accounting problem and, consequently, the solution to this problem became part of the proposed public sector accounting regulations (Bruno, 2014;Potter, 2005;Young, 1994).…”

Italian Public Sector Accounting Reform: A Step Towards European Public Sector Accounting Harmonisation

“…This suggests that public finance management is also interpreted as an accounting matter, so that solutions should primarily be sought in a new public sector accounting system without the shortcomings of the previous system (Bruno, 2014).…”