IRCI Article ID: IRCI-AR-0000001609

Determinants of International Public Sector Accounting Standards (IPSAS) Adoption: An Institutional, Political, and Cultural Perspective from Developing Economies

Authors:

Richard Doe Dartey Richard Doe Dartey Doe Dartey, Richard Jignesh Valand Jignesh Valand Valand, Jignesh

Journal: International Journal of Economics, Management and Accounting

Publication: 2025-12-31 · Vol. 3 No. 7 · pp. 496–504

DOI: 10.47353/ijema.v3i7.113

Cite this article

Citation

Choose a citation style or copy BibTeX for your reference manager.

Style

View Original Publication

Abstract

This study examines the institutional, political, and cultural determinants influencing the adoption of International Public Sector Accounting Standards (IPSAS), with a particular focus on developing economies such as Ghana. The research employs a qualitative descriptive approach based on an extensive review of academic literature, policy documents, and reports from international organizations. Drawing on institutional theory, the study identifies ten critical factors shaping IPSAS adoption: awareness level, implementation cost, technical capacity, education and experience, expertise availability, top management support, external pressure, technological readiness, transition management, and strategic planning. Evidence from prior studies suggests that IPSAS adoption is primarily driven by institutional pressures, including coercive influences from international organizations and mimetic tendencies among countries seeking legitimacy (Amiri & Hamza, 2020); (Chatti et al., 2024). Additionally, empirical findings indicate that factors such as training, cost, and technological infrastructure significantly influence successful implementation (Ademola et al., 2019). The study contributes to the literature by integrating institutional and contextual perspectives to explain IPSAS adoption behavior. It provides policy-relevant insights for governments aiming to enhance transparency, accountability, and comparability in public sector financial reporting.

0
IRCI Cited By

89
Indexed References

Authors

Richard Doe Dartey

Affiliation: Department of Accounting University for Development Studies, Tamale, Ghana

ORCID: 0000-0001-8234-9107

Richard Doe Dartey

Affiliation: , University for Development Studies, Tamale, Ghana Author Origin : Ghana

ORCID: 0000-0003-0387-9818

Doe Dartey, Richard

Jignesh Valand

Affiliation: Parul University

ORCID: 0000-0003-0387-9818

Jignesh Valand

Affiliation: , Parul University Gujarat, India Author Origin : India

Valand, Jignesh

References

Ademola, A. O., Madugba, J. U., & Eluyela, D. F. (2019). International Public Sector Accounting Standards (IPSAS) adoption and implementation in Nigerian public sector. International Journal of Financial Research. https://doi.org/10.5430/ijfr.v11n1p434

Adhikari, P., Jayasinghe, K., & Wynne, A. (2015). Public sector accounting reforms in developing countries. Public Administration and Development, 35(4), 231–245. https://doi.org/10.1002/pad.1739

Aggestam, C. (2010). A project management perspective on IPSAS adoption. International Journal of Government Financial Management, 10(2), 49–65.

Alesani, D., Alhassan, A., & Aljuaid, M. (2012). The influence of institutional factors on accounting standards adoption. Journal of Accounting Literature, 31(1), 1–23.

Amiri, A., & Hamza, S. (2020). The transition to IPSAS standards: The extent of adoption and the influence of institutional factors. Journal of Accounting and Management Information Systems, 19(2), 215–251. https://doi.org/10.24818/jamis.2020.02002

Argento, D., Peda, P., & Grossi, G. (2018). The enabling role of institutional entrepreneurs in IPSAS adoption. Public Administration, 96(1), 1–17. https://doi.org/10.1002/pad.1819

Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting and Business Research, 36, 5–27. https://doi.org/10.1080/00014788.2006.9730040

Baskerville, R., & Grossi, G. (2019). Glocalization of accounting standards: Observations on IPSAS adoption. Public Money & Management, 39(2), 95–103. https://doi.org/10.1080/09540962.2019.1580894

Bergmann, A., & Schuler, C. (2019). A theoretical basis for public sector accrual accounting research. Public Money & Management, 39(8), 560–570. https://doi.org/10.1080/09540962.2019.1592925

Boolaky, P., Omoteso, K., & Soobaroyen, T. (2019). IPSAS adoption challenges in developing countries. Journal of Accounting in Emerging Economies, 9(2), 147–168. https://doi.org/10.1108/JAEE-02-2017-0019

Brusca, I., Montesinos, V., & Chow, D. (2013). Legitimating IPSAS: The case of Spain. Public Money & Management, 33(6), 437–444. https://doi.org/10.1080/09540962.2013.836006

Carpenter, V., & Feroz, E. (2001). Institutional theory and accounting rule choice. Accounting, Organizations and Society, 26(7–8), 565–596. https://doi.org/10.1016/S0361-3682(00)00030-6

Chan, J. L. (2006). IPSAS and government accounting reform. Public Money & Management, 26(1), 35–42. https://doi.org/10.1111/j.1467-9302.2006.00509.x

Chatti, A., Ayadi, S. D., & Jeriji, M. (2024). Drivers for IPSAS adoption: Context-related factors. International Journal of Public Administration, 48(5), 654–669. https://doi.org/10.1080/01900692.2024.2401456

Christensen, M. (2002). Accrual accounting in the public sector. Accounting, Auditing & Accountability Journal, 15(5), 739–758. https://doi.org/10.1108/09513570210448920

Cohen, J., Krishnamoorthy, G., & Wright, A. (2017). Top management and financial reporting quality. Accounting Horizons, 31(2), 1–20.

Danaee, G., Tavakoli, M., & Sadeghi, M. (2016). Professional bodies and accounting reforms. International Journal of Accounting Research, 4(1), 1–10.

DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101

Dineen-Griffin, S., et al. (2019). Cost implications in accounting reform adoption. Accounting Research Journal, 32(3), 400–415.

Gómez-Villegas, M., Brusca, I., & Bergmann, A. (2020). IPSAS adoption in emerging economies. Public Money & Management, 40(4), 1–10. https://doi.org/10.1080/09540962.2020.1714202

Haija, A., AlQudah, A., Aryan, L., & Azzam, M. (2021). Key success factors in IPSAS implementation. Accounting, 7(1), 239–248. https://doi.org/10.5267/j.ac.2020.10.006

Houqe, M. N., van Zijl, T., Dunstan, K., & Karim, A. W. (2017). The effect of IFRS adoption on corruption. Journal of International Accounting Research, 11(3), 25–48.

Jafi, H., & Youssef, S. (2021). Public sector accounting education and training. Technium Social Sciences Journal, 25, 1–8.

Kassem, R., & Stefan, A. (2019). External pressures and accounting reforms. Journal of Financial Reporting, 4(2), 55–70.

Lima, V., et al. (2009). Globalization and accounting harmonization. Accounting Forum, 33(3), 225–240.

Maali, B., & Morshed, A. (2025). IPSAS adoption and governance quality. Journal of Risk and Financial Management. https://doi.org/10.3390/jrfm18020067

Mattei, G., Jorge, S., & Grandis, F. (2020). Comparability in IPSAS. Accounting in Europe, 17(2), 158–182. https://doi.org/10.1080/17449480.2020.1713723

Olaru, E. A. (2023). Effects of IPSAS adoption on financial reporting quality. CECCAR Business Review. https://doi.org/10.37945/cbr.2023.03.07

Polzer, T., Grossi, G., & Reichard, C. (2021). Implementation of IPSAS in Europe. Accounting Forum, 45(1), 1–26. https://doi.org/10.1080/01559982.2020.1868573

Sulaiman, A., & Odunlade, O. (2025). IPSAS adoption and financial accountability. Journal of Finance and Accounting. https://doi.org/10.11648/j.jfa.20251303.13

Wang, Z., & Miraj, J. (2018). IPSAS adoption in South Asia. Research in World Economy, 9(2), 44–55. https://doi.org/10.5430/rwe.v9n2p44

Whitefield, A., & Savvas, P. (2016). Challenges in IPSAS implementation. International Journal of Finance and Accounting, 1(1), 75–91. https://doi.org/10.47604/ijfa.42

Zeghal, D., & Mhedhbi, K. (2006). Factors affecting IAS adoption. International Journal of Accounting, 41(4), 373–386. https://doi.org/10.1016/j.intacc.2006.09.009

Adhikari, P., Jayasinghe, K., & Wynne, A. (2015). Public sector accounting reforms in developing countries. Public Administration and Development, 35(4), 231–245. https://doi.org/10.1002/pad.1739 DOI: https://doi.org/10.1002/pad.1739

Argento, D., Peda, P., & Grossi, G. (2018). The enabling role of institutional entrepreneurs in IPSAS adoption. Public Administration, 96(1), 1–17. https://doi.org/10.1002/pad.1819 DOI: https://doi.org/10.1002/pad.1819

Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting and Business Research, 36, 5–27. https://doi.org/10.1080/00014788.2006.9730040 DOI: https://doi.org/10.1080/00014788.2006.9730040

Baskerville, R., & Grossi, G. (2019). Glocalization of accounting standards: Observations on IPSAS adoption. Public Money & Management, 39(2), 95–103. https://doi.org/10.1080/09540962.2019.1580894 DOI: https://doi.org/10.1080/09540962.2019.1580894

Bergmann, A., & Schuler, C. (2019). A theoretical basis for public sector accrual accounting research. Public Money & Management, 39(8), 560–570. https://doi.org/10.1080/09540962.2019.1592925 DOI: https://doi.org/10.1080/09540962.2019.1654319

Brusca, I., Montesinos, V., & Chow, D. (2013). Legitimating IPSAS: The case of Spain. Public Money & Management, 33(6), 437–444. https://doi.org/10.1080/09540962.2013.836006 DOI: https://doi.org/10.1080/09540962.2013.836006

Carpenter, V., & Feroz, E. (2001). Institutional theory and accounting rule choice. Accounting, Organizations and Society, 26(7–8), 565–596. https://doi.org/10.1016/S0361-3682(00)00030-6 DOI: https://doi.org/10.1016/S0361-3682(00)00038-6

Chan, J. L. (2006). IPSAS and government accounting reform. Public Money & Management, 26(1), 35–42. https://doi.org/10.1111/j.1467-9302.2006.00509.x DOI: https://doi.org/10.1111/j.1467-9302.2006.00509.x

DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101 DOI: https://doi.org/10.2307/2095101

Gómez-Villegas, M., Brusca, I., & Bergmann, A. (2020). IPSAS adoption in emerging economies. Public Money & Management, 40(4), 1–10. https://doi.org/10.1080/09540962.2020.1714202 DOI: https://doi.org/10.1080/09540962.2020.1769374

Haija, A., AlQudah, A., Aryan, L., & Azzam, M. (2021). Key success factors in IPSAS implementation. Accounting, 7(1), 239–248. https://doi.org/10.5267/j.ac.2020.10.006 DOI: https://doi.org/10.5267/j.ac.2020.9.012

Jafi, H., & Youssef, S. (2021). Public sector accounting education and training. Technium Social Sciences Journal, 25, 1–8. DOI: https://doi.org/10.47577/tssj.v25i1.4853

Lima, V., et al. (2009). Globalization and accounting harmonization. Accounting Forum, 33(3), 225–240. DOI: https://doi.org/10.1016/j.accfor.2008.07.008

Maali, B., & Morshed, A. (2025). IPSAS adoption and governance quality. Journal of Risk and Financial Management. https://doi.org/10.3390/jrfm18020067 DOI: https://doi.org/10.3390/jrfm18020067

Mattei, G., Jorge, S., & Grandis, F. (2020). Comparability in IPSAS. Accounting in Europe, 17(2), 158–182. https://doi.org/10.1080/17449480.2020.1713723 DOI: https://doi.org/10.1080/17449480.2020.1742362

Olaru, E. A. (2023). Effects of IPSAS adoption on financial reporting quality. CECCAR Business Review. https://doi.org/10.37945/cbr.2023.03.07 DOI: https://doi.org/10.37945/cbr.2023.03.07

Sulaiman, A., & Odunlade, O. (2025). IPSAS adoption and financial accountability. Journal of Finance and Accounting. https://doi.org/10.11648/j.jfa.20251303.13 DOI: https://doi.org/10.11648/j.jfa.20251303.13

Wang, Z., & Miraj, J. (2018). IPSAS adoption in South Asia. Research in World Economy, 9(2), 44–55. https://doi.org/10.5430/rwe.v9n2p44 DOI: https://doi.org/10.5430/rwe.v9n2p44

Whitefield, A., & Savvas, P. (2016). Challenges in IPSAS implementation. International Journal of Finance and Accounting, 1(1), 75–91. https://doi.org/10.47604/ijfa.42 DOI: https://doi.org/10.47604/ijfa.42

Zeghal, D., & Mhedhbi, K. (2006). Factors affecting IAS adoption. International Journal of Accounting, 41(4), 373–386. https://doi.org/10.1016/j.intacc.2006.09.009 DOI: https://doi.org/10.1016/j.intacc.2006.09.009