THE APPLICABILITY OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) AND ITS IMPACT ON THE TRANSPARENCY OF GOVERNMENT FINANCIAL REPORTS: A SURVEY STUDY IN THE IRAQI ENVIRONMENT

• Haider Layedh Meteab

  Al-Muthanna University, Iraq

• Basim Mohammed Merhej

  Al-Muthanna University, Iraq

• Ali Nadhem Abdulameer

  Al-Muthanna University, Iraq

Objective: This study investigates the impact of adopting International Public Sector Accounting Standards (IPSAS) on enhancing the transparency of government financial reporting, with a particular focus on Iraq. The research problem stems from the gap between the growing demand for financial transparency and the challenges impeding IPSAS implementation, including legislative, technical, and human resource limitations. Method: Using a descriptive-analytical approach supported by a field survey of 200 respondents from government ministries, public institutions, and academia. Results: The study finds that IPSAS adoption significantly improves transparency, builds international trust, and strengthens anti-corruption measures through enhanced disclosure. Nevertheless, the results highlight persistent barriers such as weak technological infrastructure, insufficient professional expertise, and the need for substantial legislative reforms. Novelty: The study recommends updating accounting legislation, developing IT infrastructure, and implementing intensive training programs to ensure effective IPSAS adoption, thereby improving the quality of government financial reporting and fostering greater stakeholder trust at both local and international levels.

J. Christiaens, B. Reyniers, and C. Rolle, “The effect of IPSAS on reforming governmental financial reporting: An international comparison,” Working Paper 2013/845, Ghent University, 2013.

International Public Sector Accounting Standards Board, 2025 Handbook of International Public Sector Accounting Pronouncements. New York: IFAC, 2025.

T. Polzer, G. Grossi, and C. Reichard, “Adoption of the International Public Sector Accounting Standards in emerging economies: A systematic literature review,” J. Public Budgeting, Accounting & Financial Management, vol. 35, no. 3, pp. 309–333, 2023.

International Federation of Accountants, IFAC 2023 Financial Statements (Prepared in Accordance with IPSAS). New York: IFAC, 2024.

D. Heald and G. Georgiou, “The macro-fiscal role of the U.K. Whole of Government Account,” Abacus, vol. 47, no. 4, pp. 446–476, 2011.

International Federation of Accountants, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities. New York: IFAC, 2025.

J. L. Chan, “The adoption of IPSAS in developing countries,” Public Money & Management, vol. 30, no. 3, pp. 161–162, 2010.

D. Heald, “The substance of accounting for public-private partnerships,” Financial Accountability & Management, vol. 27, no. 2, pp. 217–247, 2011.

I. Brusca, E. Caperchione, S. Cohen, and F. Manes Rossi, Public Sector Accounting and Auditing in Europe: The Challenge of Harmonization. London: Palgrave Macmillan, 2015.

International Federation of Accountants, “Public sector financial management transparency and accountability: The use of IPSAS,” IFAC Knowledge Gateway, 2024.

E. Haustein and P. C. Lorson, “Transparency of local government financial statements: Analyzing citizens’ perceptions,” Financial Accountability & Management, vol. 39, no. 4, pp. 1199–1224, 2023.

International Public Sector Accounting Standards Board, Public Sector Financial Accountability Index 2025: Global Public Sector Shift to Accrual Accounting Steadies. New York: IFAC, 2025.

Z. Saleh, C. R. Isa, and H. A. Hasan, “Issues and challenges in implementing International Public Sector Accounting Standards (IPSAS),” IPN J. Res. Pract. Public Sector Account. Manag., vol. 11, no. 1, pp. 1–14, 2023.

T. Polzer, “Implementation of the International Public Sector Accounting Standards in Europe: Variations on a global theme,” Accounting in Europe, vol. 19, no. 3, pp. 368–401, 2022.

O. G. Gkouma and J. Filos, “Assessing the impact of IPSAS on financial reporting and public management in Greece,” SPOUDAI J. Econ. Bus., vol. 72, nos. 1–2, pp. 56–79, 2022.

A. Aseeri and K. Asiri, “The impact of the accounting transition from cash basis to accrual basis in the healthcare sector: Evidence from Asir Central Hospital (Saudi Arabia),” Bus., Innov. Technol. Manag. J., vol. 4, no. 1, pp. 1–17, 2024.

T. Polzer, G. Grossi, and C. Reichard, “The harmonization of public sector accounting and diffusion of IPSAS,” in European Public Sector Accounting, 2nd ed., P. C. Lorson et al., Eds. Coimbra: University of Coimbra Press, 2023, pp. 297–334.

A. Androniceanu, “Transparency in public administration as a challenge for a good democratic governance,” Administraţie şi Management Public, no. 36, pp. 149–164, 2021.

International Public Sector Accounting Standards Board, Building the Future—IPSASB Biennial Review 2023–2024. New York: IFAC, 2025.

B. Cuadrado-Ballesteros, J. V. Frías-Aceituno, and J. Martínez-Ferrero, “The role of media pressure on the disclosure of sustainability information by local governments,” Online Information Review, vol. 38, no. 1, pp. 114–135, 2014.

S. G. Grimmelikhuijsen and A. J. Meijer, “Effects of transparency on the perceived trustworthiness of a government organization: Evidence from an online experiment,” J. Public Adm. Res. Theory, vol. 24, no. 1, pp. 137–157, 2014.

S. Zibaghafa and G. Chukwu, “Public sector accounting standard adoption and quality of financial reporting in higher institutions in Rivers and Bayelsa States, Nigeria,” Eur. J. Account., Audit. Finance Res., vol. 12, no. 3, pp. 1–39, 2024.

E. Haustein, P. C. Lorson, C. Vanhee, and J. Christiaens, “Overview of IPSAS on public sector-specific topics,” in European Public Sector Accounting, 2nd ed., P. C. Lorson, S. Jorge, and E. Haustein, Eds. Coimbra: University of Coimbra Press, 2023, pp. 297–334.

International Federation of Accountants, “Public sector financial management transparency and accountability: The use of IPSAS,” IFAC Knowledge Gateway, 2024.

B. M. Maali and A. Al-, “Impact of IPSAS adoption on governance and corruption control in Southern Europe,” J. Risk Financial Manag., vol. 18, no. 2, p. 67, 2025.

G. G. Rompotis and D. Balios, “Benefits of IPSAS and their differences from IFRS: A discussion paper,” EuroMed J. Business, 2023.

E. I. Maayah, B. M. A. Abu Aqoula, and F. N. Barhoom, “The role of IPSAS in enhancing transparency and accountability in the public sector of Jordan: A literature review,” Preprint, ResearchGate, 2025.

• VIEW ARTICLE

• Business

Copyright (c) 2025 Haider Layedh Meteab, Basim Mohammed Merhej, Ali Nadhem Abdulameer

This work is licensed under a Creative Commons Attribution 4.0 International License.