The International Harmonization Process of Public Sector Accounting in Portugal: The Perspective of Different Stakeholders

Abstract

This paper investigates the reform of public accounting in Portugal through the IPSAS adoption highlighting the perception of different stakeholders. Two competing theories (NPM and the institutional theory) are used to understand public accounting changes within the Portuguese context. In general, different stakeholders agree with the favorable moment and the context of the reform. The context of financial crises and the great external pressures to cut public deficits and to improve the quality of financial information seem to be the most important factors to stimulate changes in public accounting. In addition, stakeholders recommend the use of different strategies to ensure success.

Why do some municipalities apply accrual-based rules more than others? Evidence from Turkey

“…This evidence emphasizes the institutional context and external pressure as one of the most important reasons to increase compliance with accrual-based rules. In addition, this evidence reinforces institutional thinking in which changes are associated with the need for legitimacy and external support for the resources (Carpenter & Feroz, 2001;Gomes et al, 2015).…”

“…Normative isomorphism, which is associated with professionalism, refers to the strong infl uence and pressure exercised by professional organizations. The infl uence of the International Federation of Accountants (IFAC) and the International Public Sector Accounting Standards Board (IPSASB) may be examples of normative forces pressing the adoption of international public-sector accounting standards (IPSAS) (Gomes et al, 2015). These isomorphic processes cause organizations to become similar, thus facilitating their transactions with one another.…”

“…Coercive isomorphism arises out of political infl uence and the problem of legitimacy; it is characterized by the imposition of rules to adopt the same types of changes in both structures and processes. The EU's decision to adopt international standards may imply a coercive decision (Gomes, Fernandes, & Carvalho, 2015). Mimetic isomorphism results from standard responses to uncertainty and defi nes the adoption of changes that are experienced by other organizations.…”

“…In the Canadian case, the implementation of accrual accounting can be "largely attributed to coercive and normative infl uences of the Offi ce of the Auditor General of Canada and mimetic isomorphism with other members of the federal government's organizational fi eld" (Baker & Rennie, 2006, p. 83). Gomes et al (2015) conclude that "the reform stimuli are mainly infl uenced by the institutional and political context and a combination of coercive, normative and mimetic forces" in their contribution to the Portuguese case (p. 279). All three isomorphic mechanisms may infl uence organizational behavior.…”

Use of performance information by local politicians: a field study in the Portuguese context

“…In this paper we find that politicians have a greater orientation towards the 'implicit' and the 'operationsconscious' styles rather than to the 'outputconstrained' and the 'outcomecon scious' styles. The institutional bureaucracies that feature the Portuguese administrative system, the 'transition period' in introducing NPM reforms (Araújo, 2002;Araújo and Branco, 2009;Carvalho et al, 2006Carvalho et al, , 2011Carvalho et al, , 2012Gomes and Mendes, 2013) and the context of high fiscal crisis faced in the last four years (Gomes et al, 2015) can help to understand the use of performance information by Portuguese local elected politicians.…”