IPSAS adoption: the accounting environment in local governments in Latin America
DOI:
https://doi.org/10.5007/2175-8069.2023.e85361Keywords:
Accounting environment, convergence, local governments, IPSAS, accounting reformsAbstract
The research analyzes the influences of the accounting environment on the process of convergence to IPSAS, with a focus on local governments – a topic little researched in the literature. The study involved interviews with standard-setters and accountants from five Latin American countries (Brazil, Peru, Argentina, Paraguay, and Colombia). The results suggest that the primary determinants of IPSAS adoption in these countries are: (i) the convergence model (direct/indirect); (ii) accounting software (standardized/outsourced); (iii) the accounting team (internal/external/mixed); (iv) support and training (promoted/required); and (v) professional training (evaluated/awarded). The findings imply that differences in these areas may be related to the performance of local government accountants. Unfamiliarity, automation, and disinterest were some of the responses from municipal accountants. The results do not define countries as “adopting” or “non-adopting”; however, the implications for IPSAS allow for the identification of the phase of adoption a country is in (declaration, implementation, application). The research shows different contexts and responses, highlighting the importance of the accountant’s perception – reflected in their performance – in the accounting environment in which they operate.
References
ACCA. (2017). IPSAS implementation: Current status and challenges. https://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2017/october/ipsas-implementation--current-status-and-challenges.html
Abdulkarim, M.E., Umlai, M.I., & Al-Saudi, L.F.(2020). Exploring the role of innovation in the level of readiness to adopt IPSAS. Journal of Accounting and Organizational Change, 16(3), 469–495. https://doi.org/10.1108/JAOC-12-2019-0119
Adam, B., & Heiling, J. (2023). Differential reporting in the public sector—Financial reporting for small- and medium-sized entities. Public Money & Management, 1–9. https://doi.org/10.1080/09540962.2023.2194029
Ademola, A.O.,Ben-Caleb, E., Madugba,J.U., Adegboyegun,A.E., & Eluyela, D.F.(2020). International public sector accounting standards (IPSAS) adoption and implementation in Nigerian public sector. International Journal of Financial Research, 11(1), 434–444. https://doi.org/10.5430/IJFR.V11N1P434
Adhikari, P., Kuruppu,C., & Matilal, S.(2013). Dissemination and institutionalization of public sector accounting reforms in less developed countries: A comparative study of the Nepalese and Sri Lankan central governments. Accounting Forum, 37(3), 213–230. https://doi.org/10.1016/j.accfor.2013.01.001
Adhikari, P., & Gårseth-Nesbakk, L.(2016). Implementing public sector accruals in OECD member states: Major issues and challenges. Accounting Forum, 40(2), 125–142. https://doi.org/10.1016/j.accfor.2016.02.001
Adhikari, P., Kuruppu, C., Ouda, H., Grossi, G. & Ambalangodage, D. (2021). Unintended consequences in implementing public sector accounting reforms in emerging economies: evidence from Egypt, Nepal and Sri Lanka. International Review of Administrative Sciences, 87(4), 870–887. https://doi.org/10.1177/0020852319864156
Agyemang, J. K. & Yensu, J. (2018). Accrual-Based International Public Sector Accounting Standards: Implementation Challenges Facing the Metropolitan, Municipal and District Assemblies in the Ashanti Region of Ghana. International Journal of Accounting and Financial Reporting, 8(2), 59-75. https://doi.org/10.5296/ijafr.v8i2.12860
Amaral, N.A.L., Bolfe,C., & Vicente, E.F.R.(2014). Estudos sobre o Regime de Competência no Setor Público Brasileiro: Os Desencontros da Discussão Acadêmica. Revista Catarinense da Ciência Contábil, 13(40), 20–36. https://doi.org/10.16930/2237-7662/rccc.v13n40p20-36
Andrews, M.(2013). The limits of institutional reform in development: Changing rules for realistic solutions. Cambridge University Press. https://doi.org/10.1017/CBO9781139060974
Anessi-Pessina, E., Nasi,G., & Steccolini, I.(2008). Accounting reforms: Determinants of local governments’ choices. Financial Accountability & Management, 24(3), 321–342. http://dx.doi.org/10.1111/j.1468-0408.2008.00455.x
Aquino, A.C.B.de, Caperchione,E., Cardoso,R.L., & Steccolini, I.(2020). Influências estrangeiras no desenvolvimento e inovações recentes em contabilidade e finanças do setor público na América Latina. Revista de Administração Pública, 54(1), 1–10. https://doi.org/10.1590/0034-761220200057
Aquino, A.C.B.de, Lino, A.F.,Cardoso, R.L., & Grossi, G.(2020). Legitimating the standard-setter of public sector accounting reforms. Public Money & Management, 40(7), 499–508. https://doi.org/10.1080/09540962.2020.1769381
Aquino, A.C.B.de, & Neves, F.R.(2019). Efeitos de redes e atuação de fornecedores na adoção de novas práticas contábeis por municípios distantes. Advances in Scientific and Applied Accounnting, 12(3), 120–143. https://doi.org/http://dx.doi.org/10.14392/asaa.2019120307
Aquino, A.C.B., Lino, A.F., & Azevedo, R.R. (2022). The embeddedness of digital infrastructures for data collection by the Courts of Accounts. Revista Contabilidade & Finanças, 33(88), 46–62. https://doi.org/10.1590/1808-057x202111600
Araya-Leandro, C.E., Caba-Pérez,C., & López-Hernández, A.M.(2011). La innovación en los sistemas de información financiera gubernamental en la región centroamericana: Evidencias desde costa rica. Innovar, 21(41), 111–123.
Arellano-Gault, D.(2018). Latin American Public Administration’s Transformation: Lessons from the European Experience. In E.Ongaro & S.Van Thiel(Eds.), The Palgrave Handbook of Public Administration and Management in Europe (pp. 1247–1263). Palgrave Macmillan UK. https://doi.org/10.1057/978-1-137-55269-3
Argento, D., Peda,P., & Grossi, G.(2018). The enabling role of in stitutional entrepreneurs in the adoption of IPSAS within a transitional economy: The case of Estonia. Public Administration and Development, 38(1), 39–49. https://doi.org/10.1002/pad.1819
Aversano, N., Christiaens,J., & Van Thielen, T.(2019). Does IPSAS Meet Heritage Assets’ User Needs? International Journal of Public Administration, 42(4), 279–288. https://doi.org/10.1080/01900692.2018.1433205
Azevedo, R. R. de, Lino, A. F., & Diniz, J. A. (2019). Efeitos da rotatividade de pessoal sobre práticas contábeis em municípios. Revista de Contabilidade e Organizações, 13(e144691), 1–14. https://doi.org/10.11606/issn.1982-6486.rco.2019.144691
Azevedo, R.R.de, Aquino, A.C.B.de, Neves, F.R., & Silva, C.M.da(2020). Deadlines and Software: disentangling local government accounting gradual reforms in Brazil. Public Money & Management, 1–17. https://doi.org/10.1080/09540962.2020.1766203
Azevedo, R.R.de, Lino, A.F., Aquino, A.C.B.de, & Machado-Martins,T.C.P.(2020). Financial Management Information Systems and accounting policies retention in Brazil. International Journal of Public Sector Management. https://doi.org/10.1108/IJPSM-01-2019-0027
Bauer, M.W., & Gaskell,G.(2000). Qualitative researching with text, image and sound: A practical handbook. SAGE Publications.
Bebbington, J., Kirk, E. A., & Larrinaga, C. (2012). The production of normativity: A comparison of reporting regimes in Spain and the UK. Accounting, Organizations and Society, 37(2), 78–94. https://doi.org/10.1016/j.aos.2012.01.001
Benito, B., Brusca, I. & Montesinos, V. (2007). The harmonization of government financial information systems: The role of the IPSASs. International Review of Administrative Sciences, 73(2), 293–317. https://doi.org/10.1177/0020852307078424
Bergmann, A., & Labaronne, L.(2013). La armonización contable internacional: El papel del IPSASB y el estado actual de su proceso de reformas. Revista Española de Control Externo, 15(44), 19–29. https://dialnet.unirioja.es/servlet/articulo?codigo=5255521
Bilhim, J. A. de F., Azevedo, R. R. de, & Santos, P. G. dos. (2022). Public Sector Reforms and Changes in Public Accounting. Journal of Accounting, Management and Governance, 25(esp), 388–397. https://doi.org/10.51341/cgg.v25iesp.3012
Bisogno, M., & Cuadrado-Ballesteros, B.(2020). Public sector financial management and democracy quality: The role of the accounting systems. Revista de Contabilidad-Spanish Accounting Review, 23(2), 238–248. https://doi.org/10.6018/rcsar.369631
Brusca, I., Gómez-Villegas,M., & Montesinos, V.(2016). Public Financial Management Reforms: The Role of IPSAS in Latin-America. Public Administration and Development, 36, 51–64. https://doi.org/10.1002/pad.1747
Brusca, I. & Martínez, J. C. (2016). Adopting International Public Sector Accounting Standards: a challenge for modernizing and harmonizing public sector accounting. International Review of Administrative Sciences, 82(4), 724–744. https://doi.org/10.1177/0020852315600232
Brusca, I., Grossi, G., & Manes-Rossi, F. (2018). Setting consolidated reporting standards for local government. Public Money & Management, 38(7), 483–492. https://doi.org/10.1080/09540962.2018.1524199
Bryman, A.(2012). Social research methods (4th ed.). Oxford University Press.
Caperchione, E., Cohen,S., Manes-Rossi,F., & Brusca, I.(2019). Editorial: Innovations in public sector financial and management accounting—for better or worse? Public Money and Management, 39(6), 385–388. https://doi.org/10.1080/09540962.2019.1583906
Cavanagh, J. & Benito, A. F. (2016). Public Accounting and Fiscal Credibility. In: Pessoa, M.; Pimenta, C. (eds.). Public Financial Management in Latin America. International Monetary Fund. 183–236.
Chytis, E., Georgopoulos, I., Tasios, S. & Vrodou, I. (2020). Accounting Reform and IPSAS Adoption in Greece. European Research Studies Journal, 23(4), 165–184. https://doi.org/https://doi.org/10.35808/ersj/1678
Deephouse, D. L., & Suchman, M. (2008). Legitimacy in Organizational Institutionalism. In Greenwood, R., Oliver, C., Sahlin, K., & Suddaby, R.(Orgs.), The Sage Handbook of Organizational Institutionalism (p. 49–77). Sage Publications.
Deephouse, D. L., Bundy, J., Tost, L. P., & Suchman, M. C. (2017). Organizational legitimacy: Six key questions. Em Greenwood, R., Oliver, C., Lawrence, T.B. & Meyer, R.E. (Orgs.), The Sage Handbook of Organizational Institutionalism: 2th edition, p. 227–254). Sage Publications.
Doorgakunt, B.L.D., Omoteso, K., Mirosea, N., & Boolaky, P.K. (2022). Revisiting International Public Sector Accounting Standards Adoption in Developing Countries. International Journal of Public Administration, 45(13), 948–963. https://doi.org/10.1080/01900692.2021.1925692
Dworkin, R.(1977). Levando os Direitos a Sério. In Boeira, N. (Ed.), Ed. Martins Fontes, São Paulo.
European Commission.(2009). Public Sector Reform – An Introduction. Office for Official Publications of the European Communities. https://doi.org/10.2783/25964
Franck, T.M.(1990). The Power of Legitimacy Among Nations. In Oxford University Press.
Gómez-Villegas, M., & Montesinos Julve, V.(2012). Las innovaciones en contabilidad gubernamental en Latinoamérica: El caso de Colombia. Innovar, 22(45), 17–35. https://www.redalyc.org/articulo.oa?id=81824864003
Gómez-Villegas, M., Brusca, I., & Bergmann, A.(2020). IPSAS in Latin America: innovation, isomorphism or rhetoric?? Public Money & Management, 40(7), 489–498. https://doi.org/10.1080/09540962.2020.1769374
Grossi, G., & Steccolini, I.(2015). Pursuing private or public accountability in the public sector? applying IPSASs to define the reporting entity in municipal consolidation. International Journal of Public Administration, 38(4), 325–334. https://doi.org/10.1080/01900692.2015.1001239
Hart, H.L.A.(1961),The Concept of Law, Vol. 2nd, Oxford University Press, Oxford.
Harun, H., Eggleton, I.R.C., & Locke, S.(2021). An integrated model of IPSAS institutionalisation in Indonesia: a critical study. International Journal of Public Sector Management, 34(2), 155–170. https://doi.org/10.1108/IJPSM-07-2020-0195
IFAC.(2021). Global Impact Map. International Federation of Accountants. https://www.ifac.org/what-we-do/global-impact-map/country-profiles?report-type=international-public-sector-accounting-standards
IFAC, & CIPFA.(2018). International Public Sector Financial Accountability Index. International Federation of Accountants.
IPSASB.(2015). IPSAS 33 First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSASs). International Federation of Accountants.
Jones, R., & Caruana, J.(2016). Governmental accounting in Malta towards IPSAS within the context of the European Union. International Review of Administrative Sciences, 82(4), 745–762. https://doi.org/10.1177/0020852315576705
Jorge, S., Brusca, I., & Nogueira, S.P.(2019). Translating IPSAS into National Standards: An Illustrative Comparison between Spain and Portugal. Journal of Comparative Policy Analysis: Research and Practice, 21(5), 445–462. https://doi.org/10.1080/13876988.2019.1579976
Kowal, S., & O’Connell, D.C.(2014). Transcription as a Crucial Step of Data Analysis. The SAGE Handbook of Qualitative Data Analysis, 64–78. https://doi.org/10.4135/9781446282243.n5
Lapsley, I., Mussari, R., & Paulsson, G.(2009). On the adoption of accrual accounting in the public sector: A self-evident and problematic reform. European Accounting Review, 18(4), 719–723. https://doi.org/10.1080/09638180903334960
Lapsley, I., & Wright, E.(2004). The diffusion of management accounting innovations in the public sector: A research agenda. Management Accounting Research, 15(3), 355–374. https://doi.org/10.1016/j.mar.2003.12.007
Lima, R.L.de, & Lima, D.V.de.(2019). Brazil’s experience in IPSAS implementation. Revista Contemporânea de Contabilidade, 16(38), 166–184. https://doi.org/10.5007/2175-8069.2019v16n38p166
Lino, A.F.(2019). As lógicas conflitantes no Tribunal de Contas e o enfraquecimento de sua relevância social. Tese de Doutorado, Universidade de São Paulo.
Lino, A.F., Carvalho, L.B.de, Aquino, A.C.B.de, & Azevedo, R.R.de.(2019). A falta de trabalho institucional e mudanças organizacionais incompletas em municípios brasileiros. Revista de Administração Pública, 53(2), 375–391. https://doi.org/10.1590/0034-761220170404
Macêdo, J. M. A., Lopes, J. E. de G., Silva, L. M. da, Filho, J.F.R., Pederneiras, M.M.M., & Feitosa, M.G.G. (2010). Convergência contábil na área pública: uma análise das percepções dos auditores de TCEs, contadores e gestores públicos. Revista de Contabilidade e Organizações, 4(8), 69–91. https://doi.org/10.11606/rco.v4i8.34759
Manes Rossi, F., Cohen,S., Caperchione, E., & Brusca, I.(2016). Harmonizing public sector accounting in Europe: thinking out of the box. Public Money and Management, 36(3), 189–196. https://doi.org/10.1080/09540962.2016.1133976
McLeod, R.H., & Harun, H.(2014). Public sector accounting reform at local government level in Indonesia. Financial Accountability and Management, 30(2), 238–258. https://doi.org/10.1111/faam.12035
Miles, M.B., Huberman, A.M., & Saldaña, J.(2013). Qualitative Data Analysis: a methods sourcebook (3rd ed.). SAGE Publications Ltd.
Moreira, F.K.(2013). A legitimidade de normas internacionais na Teoria Pura do Direito. Cosmopolitan Law Journal, 1(1). https://doi.org/10.12957/cosmopolitan.2013.8542
Nascimento, S.G.O. de A.S. do, Lopes, J.E. de G., Colauto,R.D., & Pederneiras,M.M.M. (2014). Colonização da contabilidade: Um estudo sobre o processo de convergência da contabilidade brasileira aos padrões internacionais. Revista Ambiente Contábil, 6(2), 134–151.
Neves, F.R., & Gómez-Villegas, M.(2020). Reforma contábil do setor público na América Latina e comunidades epistêmicas: uma abordagem institucional. Revista de Administração Publica, 54(1), 11–31. https://doi.org/10.1590/0034-761220180157
Patton, M.Q.(2015). Qualitative Research & Evaluation Methods (4th ed.). SAGE Publications.
Pimenta, C., & Pessoa, M. (2016). Public Financial Management in Latin America: The Key to Efficiency and Transparency. Inter-American Development Bank. https://doi.org/10.18235/0000083
Polzer, T., Gårseth-Nesbakk, L., & Adhikari, P. (2020). “Does Your Walk Match Your Talk?” Analysing IPSASs Diffusion in Developing and Developed Countries. International Journal of Public Sector Management, 33(2/3), 117–139. https://doi.org/10.1108/IJPSM-03-2019-0071
Polzer, T., Grossi, G. & Reichard, C. (2021). Implementation of the international public sector accounting standards in Europe. Variations on a global theme. Accounting Forum, 46(1), 57-82, 2021. https://doi.org/10.1080/01559982.2021.1920277
Ravanello, M., Marcuzzo, J.L., & Frey, M.R.(2015). Análise da adequação dos municípios às Normas Brasileiras de Contabilidade Aplicadas ao Setor Público. Revista do CEPE, 42, 114–131. https://doi.org/10.17058/cepe.v0i42.4818
Sasso, M., Ramos, R. P., & Varela, P. S. (2023). Conformidade contábil e a implementação de procedimentos contábeis patrimoniais: Análise dos municípios do estado do Rio de Janeiro. Advances in Scientific and Applied Accounting, 035–068. https://doi.org/10.14392/asaa.2022160103
Sediyama, G.A.S., Aquino, A.C.B.de, & Lopes, G.B.(2017a). A difusão das mudanças na contabilidade pública em municípios. Contabilidade Vista & Revista, 28(2), 78–100. https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/4656.
Sellami, Y.M., & Gafsi, Y.(2019). Institutional and Economic Factors Affecting the Adoption of International Public Sector Accounting Standards. International Journal of Public Administration, 42(2), 119–131. https://doi.org/10.1080/01900692.2017.1405444
STN (2023). Ranking da qualidade da informação contábil e fiscal no Siconfi. Disponible: https://ranking-municipios.tesouro.gov.br.
Suchman, M. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.2307/258788
Tolbert, P.S., & Zucker, L.G.(1983). Institutional Sources of Change in the Formal Structure of Organizations: The Diffusion of Civil Service Reform, 1880-1935. Administrative Science Quarterly, 28, 22–39.
Uña, G., & Pimenta, C. (2016). Integrated Financial Management Information Systems in Latin America: Strategic Aspects and Challenges. Em Public Financial Management in Latin America Public Financial Management in Latin America the Key to Efficiency and Transparency. IMF.
Downloads
Published
How to Cite
Issue
Section
License
Os Direitos Autorais para artigos publicados neste periódico são do autor, com direitos de primeira publicação para a Revista. Em virtude de aparecerem nesta Revista de acesso público, os artigos são de uso gratuito, com atribuições próprias, em aplicações educacionais, de exercício profissional e para gestão pública. A Revista adotou a licença Creative Commons Atribuição 4.0 Internacional - CC BY NC ND. Esta licença permite acessar, baixar (download), copiar, imprimir, compartilhar, reutilizar e distribuir os artigos desde que com a citação da fonte, atribuindo os devidos créditos de autoria. Nesses casos, nenhuma permissão é necessária por parte dos autores ou dos editores. Autores têm autorização para assumir contratos adicionais separadamente, para distribuição não-exclusiva da versão do trabalho publicada nesta revista (ex.: publicar em repositório institucional ou um capítulo de livro).
Esta obra está licenciada sob uma Licença Creative Commons.
