Conference Agenda

The purpose of this paper is to critically analyze the evolution of the academic debate on accrual accounting in the public sector. Specifically, it identifies emerging themes, highlights key findings, and proposes insights for future research.

The adoption of accrual accounting in the public sector is closely linked to NPM principles (Hood, 1995). It developed to enhance governmental efficiency and effectiveness (Connolly et al., 2006), often replacing cash-based accounting systems (Lapsley, 1999).

Previous literature suggests that accrual accounting improves the accuracy of information on government solvency and public assets, facilitates public service costs (Pina et al., 2003), and supports financial management (FEE, 2007). However, some scholars remain critical (Christiaens et al., 2008; Lapsley et al., 2009), arguing that it does not effectively address financial control issues, as it provides a perspective on performance (Hepworth, 2002).

Despite these concerns, accrual accounting was first adopted by Anglo-Saxon countries, followed by European nations (Pina et al., 2009). This led to the establishment of the IPSASB and, subsequently, in the wake of the 2008 financial crisis and the 2010-2011 sovereign debt crisis, to the adoption of Directive 85/2011 and the development of the European Public Sector Accounting Standards framework (Rossi et al., 2016).

This study investigates the state of the art and the conceptual structure of accrual accounting in the public sector through a bibliometric analysis conducted with Bibliometrix (Aria et al., 2017). A Boolean search was applied to titles, abstracts, and keywords using the query: ["Accrual*" AND ("Public Sector*" OR "Public Govern*" OR "Public Administration*")]. The reference period was divided into three phases: from the first published paper to the adoption of accrual accounting by a public organization (1992-2000); from 2000 to the publication of Directive 85/2011 (2000-2011); and from the Directive’s adoption to the present (2011-2024).

The analysis enabled the identification of four thematic categories – basic, niche, motor, and emerging/declining – offering a perspective on the evolution of the academic debate. The thematic map of the first period highlights “accounting” as a basic theme and “governmental accounting” as an emerging theme. This result underscores the preliminary stage of research, primarily focused on exploratory studies. In the second period, the basic theme shifts from “accounting” to “accrual accounting”. “Cash accounting” is undergoing a progressive decline, and “accounting reform” is classified as a niche theme, suggesting limited interest in broader public sector reforms. Meanwhile, “public sector accounting” becomes a motor theme, highlighting its growing relevance in the academic debate. In the third period, “accrual accounting” remains the basic theme, while “EPSAS” emerges as a niche theme, and “Accounting reform” becomes a motor theme, reflecting its increasing influence on the academic debate.

Further investigation will explore, through a co-citation analysis, the connections between the research themes across the reference periods and within the thematic areas. A more detailed examination will also assess key findings and critical issues, determining whether the literature presents consistent results or remains fragmented. The analysis underscores the academic recognition of accrual accounting in the public sector and the need for further research.

Purpose of the paper While the reform seeks to modernize public sector accounting by aligning it with European standards (EPSAS) and enhancing fiscal transparency, its implementation at the local level reveals systemic obstacles rooted in organizational culture, capacity gaps and operational constraints. This working paper investigates the practical challenges hindering the adoption of the accrual-based accounting system in Italian local authorities, (as mandated by Reform 1.15 of Italy’s National Recovery and Resilience Plan) and the ITAS 4’s implementation. Drawing on empirical evidence from fieldwork, this work in progress paper offers the initial data from the questionnaire submitted to local administrations, and therefore the results obtained are only partial.

Research methodology - The research employs a mixed-methods methodology, combining qualitative insights from case studies across local authorities of varying sizes. Questionnaire to public officials, including accountants and financial managers, provide depth to the analysis, while a review of policy documents - such as the PNRR Implementation Guidelines for Component 1.15 and preparatory technical reports by Italy’s Ministry of Economy and Finance (MEF) and ITAS 4 principle- contextualizes the reform within broader transnational harmonization efforts.

Main findings and implications - Key findings highlight a pervasive resistance to change among public employees, primarily driven by familiarity with cash-based accounting and concerns over increased complexity. A significant majority of local authorities surveyed reported cultural inertia, particularly in smaller entities where staff shortages exacerbate the strain of adopting new systems. Compounding this issue is a pronounced skills gap: few accountants possess prior experience with accrual principles, and training initiatives remain underfunded and fragmented. Tight implementation deadlines further strain resources, with many municipalities facing delays in upgrading IT infrastructure and reconciling legacy systems with new reporting requirements. Authors suggest some hybrid pilot practices by experimenting with parallel systems. Here, cash-based accounting would retain its role in short-term budgetary control, while accrual methods might be gradually integrated for asset management and long-term fiscal sustainability reporting. Authors emphasize that such coexistence - rather than outright replacement - could mitigate disruption and leverage the strengths of both frameworks. The implications of these work and findings extend beyond Italy’s context. Policymakers are urged to adopt flexible timelines, prioritize capacity-building programs, and develop transitional guidelines that acknowledge the complementary roles of cash and accrual systems. Practitioners may benefit from phased integration models, standardized valuation tools, and collaborative platforms for knowledge-sharing among authorities. Theoretically, the study challenges the assumption of seamless accounting harmonization in decentralized governance systems, underscoring the critical interplay between institutional culture, resource availability, and reform design.

 

Purpose.

This study examines the role of International Public Sector Accounting Standards (IPSAS) as a mechanism for reducing corruption and increasing transparency in the Ukrainian public sector. As a transitional state facing both post-Soviet legacy challenges and wartime governance demands, Ukraine provides a unique setting to explore how international accounting standards can support anti-corruption goals. The paper assesses whether the adoption of IPSAS contributes meaningfully to public sector integrity or whether complementary reforms and institutional conditions are required to translate technical adoption into real-world impact. The study also seeks to position Ukraine’s experience within the broader European context to evaluate comparative effectiveness and implementation patterns.

Design/methodology/approach.

The research employs a qualitative case study approach, drawing on official Ukrainian policy documents, IPSAS Board standards, national audit reports, and semi-structured interviews with public finance experts. It focuses on three key IPSAS standards relevant to anti-corruption: IPSAS 20: Related Party Disclosures, IPSAS 24: Presentation of Budget Information in Financial Statements, and IPSAS 33: First-Time Adoption of Accrual Basis IPSAS.

Comparative analysis is conducted with selected Southern European countries (e.g., Greece, Portugal, Italy), where IPSAS implementation has been inconsistent and often symbolic, and Northern European countries (e.g., Sweden, Denmark, Norway), where transparency reforms are embedded in robust institutional frameworks. This allows for a contextualized understanding of IPSAS as both a technical and governance-oriented instrument.

Findings.

Initial findings indicate that IPSAS provides an important structural foundation for improved financial transparency, particularly through mechanisms that expose conflicts of interest, track budget execution, and align accrual-based financial reporting with international standards. For example, IPSAS 20 enables greater scrutiny of transactions involving politically exposed persons, while IPSAS 24 facilitates public oversight by linking budget expectations with actual outcomes. However, in the case of Ukraine, successful implementation is challenged by limited institutional capacity, digital infrastructure gaps, and ongoing political uncertainty.

Comparative insights reveal that in Southern Europe, partial adoption of IPSAS has had minimal anti-corruption effect due to weak enforcement mechanisms. Conversely, in Northern Europe, IPSAS is part of a larger ecosystem of accountability, supported by independent audit institutions, open data access, and performance-based budgeting. Ukraine stands at a crossroads between these two trajectories, with growing reform momentum but significant systemic constraints.

Originality/value.

This paper contributes to the literature on public financial management by bridging the gap between technical accounting standards and the broader fight against corruption. It provides a grounded assessment of how IPSAS functions in practice within a transitional and crisis-affected context. The Ukrainian case highlights both the transformative potential of IPSAS and the limitations of relying solely on formal standards without supportive institutional, political, and cultural conditions. These insights are relevant not only for policymakers and reformers in Ukraine, but also for other countries in the Global South, international donors, and oversight bodies aiming to strengthen governance through accounting reform.