International Public sectors Accounting Standard Implementation Practice in Ethiopia: In the case of Implementing International Non-Governmental Organizations.
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Date
2022-06-11
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A.A.U
Abstract
IPSAS is a new concept in Ethiopia having the required technical expertise and issued by Accounting and Audit Board of Ethiopia to be applied on public sector including INGOs. The objective of this study was to assess IPSAS implementation practice on INGOs currently operating in Ethiopia. The study used descriptive survey design and the data collected for this particular study were from 34 sample respondents. The main benefits of this study includes enhanced internal control, employ benefit calculation, comparability and understandability, better resource management, acceptability of the financial report by the concerned bodies, to establish effective follow up procedure, to measured and recognize donation in kind and in service and to record inventory appropriately. The main challenges of IPSAS implementation includes fixing a fixed asset threshold, lack of budget to facilitate training for staffs, inflated cost of consultants, low management attitude about the system, lack of readiness of government bodies for monitoring its implementation in public sectors and creates a reasonable conflicting situation between charities and regulatory bodies regarding with operational and administrative cost category of 80/20 rule. The study finding implies that, AABE needs to work with Ministry of Education to include IPSAS concept as one course in every business fields of studies. AABE, ACSO, charities and External Audit Service providers should provide IPSAS training for their staffs to accelerate and maximize the benefit gained from IPSAS implementation. Finally I suggest that, to enhance IPSAS implementation, both researchers and policy makers should target on testing the performance of the implementers and controllers.