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In relation to-International Public Sector Accounting Standards (IPSASs). i) Explain any three benefits that would accrue to a government as a result of the adoption of...

      

In relation to-International Public Sector Accounting Standards (IPSASs).

i) Explain any three benefits that would accrue to a government as a result of the adoption of IPSASs.
ii) Analyze, any two limitations that, state (or. county) governments in your country are likely to face in implementing IPSASs.

  

Answers


Martin
i. Benefits of adopting IPSAS

Uniformity

IPASs will introduce a measure of uniformity in accounting and presentation of financial
statements across government and government operations and agencies. This would maket easier and possible to compare the financial statements of governments and government
agencies.

Quality

IPSASs are developed after consultations with a wide variety of stakeholders, Because
they incorporate the widest ranging views, they are likely to lead to increase quality of
financial statements of governments and government agencies.
Transparency and accountability

IPASs just like IFRSs prescribe certain disclosures that are not required under the
traditional cash basis of accounting. In addition JPSASs prescribe the use of accrual basis
of accounting. These combined factors will lead to greater accountability and transparency
in governments and government departments.

ii. Limitations of adopting IPSASs

Legal barriers

In some jurisdictions, the reporting framework for government and government agencies is
stipulated in law. Thus the adoption of IPSASs would be subordinate to the entrenched
legal reporting framework.

Resources

The initial adoption of IPSASs will require a hefty investment in staff and other resources.
Most government, especially in the third world, cannot spare these resources.

Low literacy in IFRSs

Various countries have continued to face challenges in the adoption of IFRSs. The IPSASs
framework borrows quote heavily from IFRSs. This means that low IFRS literary will
negatively impact the adoption of IPSASs.
marto answered the question on February 15, 2019 at 06:34


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