Diffusion of the Cash Basis International Public Sector Accounting Standard (IPSAS) in Less Developed Countries (LDCs) – The Case of the Nepali Central Government
journal contributionposted on 2016-11-08, 11:06 authored by Pawan Adhikari, Chamara Kuruppu, Andy Wynne, Dayananda Ambalangodage
Purpose The adoption of International Public Sector Accounting Standards (IPSASs) in particular the Cash Basis IPSAS has now become a priority for the World Bank and other donors in less developed countries (LDCs). The paper explores the dissemination and implementation of the Cash Basis IPSAS in Nepal, a less developed country which is considered as one of the front-runners in terms of embracing the Cash Basis IPSAS. Methodology/approach The paper draws on diffusion theory to explain the internal and external factors related to the adoption and implementation of the Cash Basis IPSAS in the Nepali public sector. Data for the paper are derived from document analysis and semi-structured interviews. Findings The study shows that the adoption and implementation of the Cash Basis IPSAS in Nepal has become more of rhetoric than reality. Claims that the Cash Basis IPSAS is gaining popularity and widespread success across less developed countries are therefore contentious. Research limitations The case of Nepalese central government may not be adequate to generalise the adoption of the cash basis IPSAS in all less developed countries. Nonetheless, the study provides an overview of on-going public sector accounting reforms in less developed countries. Originality/value The paper emphasises the need for the identification of good accounting practices for less developed countries rather than forcing them into symbolic acceptance of the Cash Basis IPSAS. An example of such a good practice can be the promotion of certain aspects of modified cash accounting.
CitationPublic Sector Accounting, Accountability and Auditing in Emerging Economies, 2015, 15
Author affiliation/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/School of Management
- AM (Accepted Manuscript)