Technical Differences Between Cash and Accrual IPSAS Implementation in Africa

Abstract

Accountability of public funds and appropriations is at the core of every government executive, legislature and judiciary. Inability and poor accountability in public funds, at its worst it has culminated in unethical and criminal conduct by public officers. Cash and accrual based IPSASs and general purpose financial statements presented fairly based on the qualitative characteristics of financial reporting enhance accountability and transparency of governments and public entities. This scientific study purpose to evaluate the relative application technical differences of cash and accrual based IPSASs in Africa, based on accounting professionals in public sector practice. The methodology adopted for this study was mixed research methodology, based on case study research design optimising both quantitative and qualitative, using descriptive and inferential statics including explanatory notes. The sampling frame of Pan African Federation Accountants (PAFA) public sector accountants, being selected randomly was adopted. The results revealed that the accrual based IPSAS is conceptually more relevant in the attainment of the public sector objectives, than the cash based IPSAS, and that all IPSAS first time users should follow a logical sequence of adoption starting the cash based, through the transition, and finally adopt the accrual based IPSAS perceived to more costly and technically challenging in adoption and implementation