Exploring the New Public Management (NPM)-Based Reforms in the Public Sector Accounting

Lokuwaduge, Chitra De Silva; Silva, L De

doi:10.4018/978-1-4666-9803-1.ch003

Cited by 4 publications

(16 citation statements)

References 46 publications

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“…Some scholars consider institutional factors (Adhikari et al, 2009), while others give more relevance to behaviour and culture as essential factors (Nobes and Parker 2008). The investors and other stakeholders expect the private like public sector measures for better accountability and transparency which NPFM and contingency theory (Lüder 2002(Lüder , 1992 identify as the reform driver generated through external Given the prominence of banks and private sector investors that hold government debt, especially government bonds, there is a strong demand for the same level of financial transparency and accountability from the public sector as is expected from the private sector (Lokuwaduge, 2016).…”

Section: Reform Process-adoption Of Accrual Based Ipsasmentioning

confidence: 99%

“…The international trend towards modernizing the financial information systems to adopt sound financial management and accountability systems is likely to continue throughout the world irrespective of social economic differences. The stimulus in this evolution has been highly influenced by the involvement of international organizations such as OECD, NATO, United Nations, Wworld bBank, International Monitory Fund (IMF) and the European Commission (Adhikari, Kuruppu, & Mellemvik, 2009;Grossi & Soverchia, 2011, Lokuwaduge 2016, Senerath Yapa & Ukwatta 2015. This move was mainly initiated by the accounting professional organizations such as International Public Sector Accounting Standards Board (IPASB) and the International Organization of Supreme Audit Institutions (INTOSAI, 2005).…”

Section: Introductionmentioning

confidence: 99%

“…Even though the rResearch on adoption of IPSAS for better transparency in developing country context has grown during the last two decades (Adhikari, et al, 20092013;Hopper, Tsamenyi, Uddin, & Wickramasinghe, 2009;Senerath Yapa & Ukwatta, 2015;Lokuwaduge, 2016), little is known about the diffusion and the difficulties in implimenting accrual based IPSAS in the Asian region.. The aims of this study is to identify the determinants of the public sector accounting policy reform introduced globally in light of NPFM and the adoption of accrual based accounting systems derived from International Public Sector Accounting Standards (IPSAS), giving special reference to Sri Lanka as a developing country in Asia.…”

Section: Introductionmentioning

confidence: 99%

“…argued that using the research instruments derived from developed countries do not provide reliable outcomes in developing countries specifically in the Asian region due to their distinctive differences. Most of the developing country accounting research(Uddin & Tsamenyi, 2005; Senerath Yapa & Ukwatta, 2015;Lokuwaduge,. ; 2016) used case studies to gather data for their studies in public sector accounting reforms.…”

mentioning

confidence: 99%

“…Nevertheless, the Association of Public Finance Accountants of Sri Lanka (APFASL), which was established as the public sector wing of the Institute of Chartered Accountants of Sri Lanka conducted many training programs for public sector accounting professionals in the year 2012 to make this move a success. Moreover, MOFP made provisions for new training facilities to enhance the skill base of the existing public accountants to provide required technical support(Lokuwaduge, 2016) and world Bank instigated most of these major technology enhancement projects (WorldBank, 2007). ).Secretery to the SAD issued a circular regarding the implementation of SLPSAS ,SLPSAS, which emphasised the importance of the process, but at the same time they acknowledged the difficulties in adopting the project while advising the ministries to prepare "Appropriation Account" for the year 2014 on cash basis and all ministries and departments should take action to prepare accounts on accrual basis.…”

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confidence: 99%

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Determinants of public sector accounting reforms

Lokuwaduge

Silva

2020

IJPSM

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Purpose The purpose of this paper is to extend the New Public Financial Management concept and the contingency model approach to an analysis of the determinants of the accrual-based International Public Sector Accounting Standards (IPSAS) adoption process as a financial management reform in Sri Lanka, a developing country in Asia. Design/methodology/approach Based on the prior literature, this paper develops a framework to highlight the importance of accrual-based reforms in public sector accounting policies to enable better transparency and accountability. It shows the extent to which Sri Lankan public sector institutions have adopted IPSAS-based accounting standards and the limitations of adopting these standards in a developing country, using documentary analysis. Findings In developing countries, the public sector faces practical problems when adopting reforms due to limited institutional capacity, high political involvement and bureaucracy in decision making. This paper concludes that significant policy changes towards the adoption of international accounting standards have gained momentum over the last decade in Sri Lanka while the much larger economies in Asia are still studying this process. However, the prevailing political uncertainty in Sri Lanka has negatively impacted the implementation process. Originality/value Relatively little is known about the diffusion of, and the difficulties in, implementing accrual-based IPSAS in the Asian region. This paper is an attempt to fill this gap by exploring the Sri Lankan experience. This could be applied by other developing countries in Asia, including the high-growth nations, for policy adoption and accounting harmonisation.

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Section: Reform Process-adoption Of Accrual Based Ipsasmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Determinants of public sector accounting reforms

Lokuwaduge

Silva

2020

IJPSM

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Constraints and stimuli in the implementation of public accounting reform: systematic literature review and future research agenda

Liberato,

Choban de Sousa Paiva,

Serrasqueiro

2023

JAOC

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Purpose The purpose of this study is to discuss the most relevant literature related to the adoption of International Public Sector Accounting Standards (IPSAS) in the public sector in developed and developing countries, identifying the constraints and stimuli they represent in the implementation of the public accounting reform. It also presents future research proposals on the factors identified. Design/methodology/approach The methodology is based on a systematic review of the literature described by Moher et al. (2009). The final sample includes 90 academic papers published from 2000 to 2022. Findings The main findings indicate that there are differences between constraints and stimuli in the implementation of accounting standards between developed and developing countries. In terms of constraints, the main factor in developed countries is the lack of training, whereas in developing countries it is the limitation on financial resources. In addition, the results demonstrate that in developed countries the factors that most encourage the implementation of accounting standards are modernization and improvement of accounting, while in developing countries, encouragement comes mainly from external and internal pressure. Practical implications This study helps countries and institutions to learn from experience and better prepare for the accounting reforms of public administration that they will undertake. Managers of public organizations may be willing to make decisions in the adoption of IPSAS if they take into account the factors established herein. Social implications This study helps countries and institutions to learn from the experience, better prepare for the public administration accounting reforms that they will undertake and add greater transparency in the accountability of public accounts to citizens. Originality/value In addition to previous studies, this study addresses a number of factors perceived by those involved in the implementation of IPSAS in developed and developing countries and provides a robust research agenda to pursue during the coming years, as there are several important unexplored questions that invite further research.

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The Impact of Accountability Mechanisms on Public Sector Environmental Sustainability Performance: A Case Study of Sri Lanka

Silva¹,

Yapa²,

Vesty³

2020

AABFJ

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Asia is the fastest growing economic region that has attracted significant economic and infrastructure development. With increasing development, this region has become one of the main environmental polluters with significant environmental degradation, reduced water and air quality, and imperilled biodiversity. Traditional international donor and funding agencies such as the World Bank and Asian Development Bank have strict environmental safeguard policies drawn from Sustainable Development Goals, to ensure borrowing countries and projects comply with environmental sustainability. However, with an increasing shift to non-traditional donors such as China, environmental safeguards are not a key priority in developmental projects. The public sector plays a significant role in ensuring environmental sustainability and accountability, and is increasingly being pressured to revisit their concept of sustainability. Robust public sector accountability frameworks are paramount to achieve environmentally sustainable development. However, environmental sustainability research in developing country context is limited, public sector research is even scarce. This paper aims to fill this gap by clarifying the concept of environmental accountability of public sector entities in pursuing internationally funded development projects in Sri Lanka as a fast developing country in the south Asian region. This further analyses the roles and responsibilities of public sector agencies in relation to the environmental sustainability practices and the impact of international development funding agencies, including donor agencies on public sector accountability. The analysis indicates that despite the existing environmental sustainability guidelines and principles set by international agencies, environmental degradation continued to be a significant challenge in the country.

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Exploring the New Public Management (NPM)-Based Reforms in the Public Sector Accounting

Cited by 4 publications

References 46 publications

Determinants of public sector accounting reforms

Determinants of public sector accounting reforms

Constraints and stimuli in the implementation of public accounting reform: systematic literature review and future research agenda

The Impact of Accountability Mechanisms on Public Sector Environmental Sustainability Performance: A Case Study of Sri Lanka

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