IPSAS: History, Spread and Use

International Public Sector Standards (IPSAS) have been in existence for more than two decades now.1 Developed by the International Public Sector Accounting Standards Board (IPSASB), the IPSAS are designed for application by national, regional and local governments, as well as related national and transnational public sector organisations. Convergence of accounting practices and systems across borders advances a largely homogenous basis for financial reporting in the public sector. Thus, IPSAS serve as a mechanism that supports convergence and harmonization of public sector accounting and financial reporting across borders. Recent data show that close to 70 jurisdictions have partially adopted IPSAS,2 but adoption approaches differ between jurisdictions. This chapter provides some examples of countries that adopt accrual based IPSAS through this path. The adoption of IPSAS has been progressing globally; this chapter provides a high-level overview of such progress. Despite progress, challenges have persisted over time, in particular with regard to advancement in the competences of accountants in the public sector and the implementation of a sound institutional structure to support IPSAS-based reporting.