Explain the benefits that would accrue from the adoption of international public sector accounting standards (IPSASs) by governments and public entities.

Explain the benefits that would accrue from the adoption of international public sector accounting standards (IPSASs) by governments and public entities.

Benefits of adopting IPSASs

1. Improve accountability, transparency and disclosure of government activities and
resources to the public:

2. Will enable the government and the public at large to assess performance of public sector
entities, i.e. will facilitate measurement of efficiency and effectiveness of utilization of
resources and generation of surpluses for the future use.

3. Will improve reliability of accounts and boost the confidence of external agencies such
as donors on dependability of accounts for. example in credit worthiness analysis

4. Use of IPSAS, across public sector entities and even governments will enhance
comparability among the entities-and governments.

5. With reduced misuse of public funds increased emphasis on performance management
and transparency, resources will be put to their intended use. Ultimately, this will yield
improved standards of living and sustainable economic developments.

6. IPSASs will improve consistency in preparation and reporting of financial information.
This will in turn enable users to draw consistent conclusions given similar sets of
financial statement.

7. Adoption of IPSASs will improve the audit of public institutions. This will translate into
timely audit report.

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marto answered the question on February 15, 2019 at 07:05

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