See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/325502472

Analysis of Accounting Reforms in the Public Sector of Pakistan and Adoption

of Cash Basis IPSAS

Article in Universal Journal of Accounting and Finance · June 2018

DOI: 10.13189/ujaf.2018.060203

CITATIONS READS

17 3,201

1 author:

Javed Miraj
Ocean University of China
4 PUBLICATIONS 49 CITATIONS

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

international public sector accounting standards (IPSAS) View project

All content following this page was uploaded by Javed Miraj on 01 June 2018.

The user has requested enhancement of the downloaded file.

Universal Journal of Accounting and Finance 6(2): 47-53, 2018 http://www.hrpub.org
DOI: 10.13189/ujaf.2018.060203

Analysis of Accounting Reforms in the Public Sector of

Pakistan and Adoption of Cash Basis IPSAS
Miraj Javed*, Wang Zhuquan

College of Management, Ocean University of China, Qingdao, P. R. China

Copyright©2018 by authors, all rights reserved. Authors agree that this article remains permanently open access under
the terms of the Creative Commons Attribution License 4.0 International License

Abstract Streamlining the accounting system in governments began to appreciate the significance of
accordance with “world’s best practices” will result in high-quality financial reporting; financial crises increase
consistency and transparency in the financial management the demand for effective financial management in public
of the country, ensure good governance, boost the sector accounting for transparency and financial reporting
confidence of investors, and contribute to strengthening the [8]. Public sector accounting is a key factor to the growth
economy. The public sector accounting system in Pakistan of a nation, and recent advances in the field of accounting
has been overhauled recently. The reforms have been show that public sector accounting and financial reporting
implemented by the Federal Government of Pakistan reforms are useful if adopted in all government levels [9].
(GOP), with the assistance of World Bank, through Project Chartered Institute of Public Finance and Accounting
to Improve Financial Reporting and Auditing (PIFRA). defines financial management as “the system by which
This study describes the accounting reforms implemented financial management resources are planned, directed, and
by the GOP and the adoption of cash basis International controlled to enable and influence the efficient and
Public Sector Accounting Standards (IPSAS) for financial effective delivery of public service goals” [10]. Numerous
reporting. We first describe the contents of the accounting countries have begun to realize the importance of good
reforms implemented in all levels of the country beginning financial management in public sector entities, especially
in the 1990s and briefly introduce cash basis IPSAS. after the emerging of international accounting standards,
Second, we assess the compliance of Pakistan’s accounting many countries and some intergovernmental organizations
system with cash basis IPSAS and IPSAS-2 cash flow adopted IPSAS because it considers the best practices and
statement. Finally, we conclude that the financial alternative reforms for government entities in evaluating
statements of the GOP comply with the requirements of financial reports. The harmonization of public sector
cash basis IPSAS. This study recommends transitioning accounting generates outcomes similar to those of the
from cash to accrual accounting system because Pakistan business sector, although public sector accounting is
has reflected a satisfactory margin after the new reforms considered less important than private sector accounting in
have been implemented. the international market [16]. Developed and developing
countries should pay considerable attention to the global
Keywords Public Accounting, IPSAS, PIFRA, New clamor for efficient public financial management that
Accounting Model, GOP ensures accountability and transparency. [2]. World Bank
(WB), International Monetary Fund (IMF), and Asian
Developed Bank (ADB) are the main sponsors of financial
reforms in less developed countries (LDCs).Since 1980,
1. Introduction they have initiated programs for budgeting and accounting
reforms in the public sector of LDCs, which are also the
Public sector accounting has become an important key features of New Public Management (NPM), proposed
global topic in recent years. The effect of public sector for LDCs to improve transparency and accountability in
accounting on public financial management and resource allocation and service delivery [6]. Changes in
accountability has significantly influenced the socio global trend and the involvement of international
economic development of the country. An effective institutions motivate the GOP to implement a paradigm
accounting system allows the government to manage its shift in public sector financial management accordance
finances smoothly and provides audit trails to avert and with the best international practices. The GOP has
detect financial misconduct [15]. After facing deficits, modified its legislation to implement the reforms under
high-level debts, and budgetary instability, many Ordinance 2001.
48 Analysis of Accounting Reforms in the Public Sector of Pakistan and Adoption of Cash Basis IPSAS

2. Background and Objective of Study for financial data, and lack of skilled staff resulted in
unsatisfactory planning, budgeting and reporting, and
This study describes the accounting reforms adopted in ineffective internal controls. Cash, asset, and debt positions
public sector implementation and compares the financial were unreliable. Some commitments/obligations were
reports of the GOP with cash basis IPSAS and IPSAS-2. In unidentified. Pensions and depreciation records were not
Pakistan, minimal work has been carried out on public maintained. These contributing factors caused uneven
sector accounting. Most studies focus on the private sector resource allocation and led to weak governance and
despite the importance of public sector accounting and its accountability [5]. Project to Improve Financial Reporting
need for further research. This study provides sound and Auditing mainly aimed to guarantee transparency in
knowledge of public sector accounting reforms in Pakistan. government and donor development funds, enhance the
Analyzing the current accounting system with International accountability of government revenue and expenditure,
System I will help in further research and enable reinforce the decision-making and budgeting processes, as
stakeholders to visualize clearly the current accounting well as offer realistic information to the public [5].
system of Pakistan.
IPSAS
IPSAS supports transparency and accountability in
3. Methodology public sector organizations and improves the quality of
financial information reporting [10]. The main purpose of
This is a descriptive research that uses the case study IPSAS is to improve the quality of the general purpose
approach to describe the public sector accounting reforms financial reports (GPFRs) of public sector entities for
and the compliance of the GOP annual financial reports decision-making and allocation of resources. Compliance
with cash basis IPSAS and IPSAS-2 cash flow statement. with IPSAS standards ensure that the financial reporting of
This study utilizes secondary data; Documents analyzed in public entities reflects a true and fair view of the financial
this study include the WB report for 2007, IPSAS, new position and shows transparency and accountability in the
accounting model (NAM) manuals, and financial management of public resources. It brought excellence in
statements of the GOP from 2009 to 2016. In addition, financial management and thereby increasing the
reviewed media reports on government accounting confidence of investors and gaining public trust. IPSAS
standards, Auditor-General (AG) and Controller General enables the comparison of financial reports with those of
Reports and related newsletters are considered. other countries and motivate raising capital from
international markets [7]. Sovereign debt crisis, which has
affected many countries, including the European Union
4. Literature Review and the United States, is caused by the lack of government
transparency and accountability, poor financial
Public Sector Accounting Reforms in Pakistan management, poor public sector financial reporting, and
Since independence, Pakistan has been implementing the lack of institutions for fiscal management; these
the British accounting system, which is based on weaknesses constrain the government from managing
Accounting Code I–IV. This accounting system is dual in financial resources to protect the interests of the public and
nature. The British army, deployed in the subcontinent, other investors [10]. The establishment of the World Trade
maintains separate accounts and uses a different format for Organization and the partnership agreement between
the civil sector [3], while public sector accounting follows countries force developing countries to implement reforms
the non-commercial system. Global harmonization in in their economic and development policies and move to
public sector accounting prompts the government to NPM to integrate with the world economy [9]. The
introduce reforms in the government accounting practice in healthier financial management ensured greater
Pakistan [3].The PIFRA reforms were begun in the 1990s accountability and transparency, alleviated the
[4]. Currently, the NAM is implemented using the SAP/R3 apprehension of both developed and under developed
application for government accounting [3]. The current countries, and reduced anxiety by using IPSAS in
accounting reforms in the government sector of Pakistan preparing the GPFRs designed and promoted by the
were initiated in 1997 through PIFRA and financed by WB International Federation of Accountants [7]. The basic aim
under the supervision of the AG of Pakistan. The major of IPSAS is to improve the quality of public sector GPFR,
change in the accounting system involves separating the ensure government transparency and accountability, and
office of the AG from the Controller General of Accounts promote the assessment of resource allocation decisions
(CGA) through ordinance 2001 [3]. The IMF conducted a and conformity with global best practices and
survey for reforms through a diagnostic study sponsored by sustainability reporting. Financial stewardship is promoted
WB and project partner ADB [5]. The accounting and and all stakeholders have great confidence in public sector
auditing system of all government entities of Pakistan were organizations; effective financial management plays an
obsolete and required harmonization. Inadequate system important role in decision-making and resource allocation
 Universal Journal of Accounting and Finance 6(2): 47-53, 2018 49

[10]. The central government, a key regulator, is accounting system used by the GOP was manual and
exclusively responsible for determining the standards for unable to produce comprehensive reports for public
businesses and the public sector through legislation [8]. financial management. The budgetary and accounting data
Public sector is the part of the national economy where for financial reporting were insufficient.
economic and non-economic activities are controlled and The PIFRA, which was implemented in three phases
directed by the government [11]. The high implementation between 1996–2014 at all federal, provincial, and district
cost of IPSAS discourages public sector entities from levels of the government, introduced the NAM with the use
adopting its standards. IPSAS cost includes training, hiring, of Enterprise Resource Planning (ERP) SAP/R3 and a new
consultancy, organizational changes, IT investments, and chart of accounts [5]. The NAM is a set of seven manuals
other overheads, depending on the activity and nature of comprised of accounting policies and principle, procedures,
the entity. A project team and managerial support are and reporting standards of the GOP. The NAM is designed
required to accomplish the project. Harmonization in for the major financial activities of accounting entities
Public sector financial management is ongoing process, whose principal funding is appropriated from the GOP.
which gradually leads to amendments of existing IPSAS The basic purpose of the NAM is to improve the traditional
and the issuance of new IPSAS [12]. accounting system and interpret the budgetary activities of
the government by introducing a shift toward modified
Harmonization of Public Sector Accounting in Pakistan cash basis accounting, double-entry bookkeeping,
The public sector accounting practice in Pakistan dates commitment accounting, fixed asset accounting, and a
back to its independence. The manual system became multi-dimensional chart of accounts. The NAM has all the
obsolete because of its perpetual method of recording basic features, such as structure of the model with its
transactions and inept reporting system, which affected the individual accounts, the principles of budgeting and
decision-making process of the government. The accounting, the preparation of annual financial statements,
inadequate financial reporting system affected the budget management, and financial reporting [17]. The
economic development of the country and caused distrust SAFA (2006) claimed that the NAM can be converted into
in welfare services. Reforms in public sector accounting accrual-based accounting system with some modifications
and adoption of international accounting standards were [18]. The NAM is supported by the SAP-ERP based
greatly needed. The overhaul of public accounts in system and is adopted in more than 500 cities across the
Pakistan began in 1997, the WB has supported the country at federal, provincial, and district levels. The
comprehensive reform efforts of the GOP to modernize its district accounts offices (DAOs), other district level offices,
accounting and auditing system and procedure while and provincial line departments are linked through a wide
improving the institutional and individual potential for area network (WAN) to servers at the AG Office and the
efficient public financial management [2]. To bring about Finance Department of their respective provinces. All
transparency and accountability and improve the quality of provincial servers are linked through WAN to the federal
public sector GPFR as per international standards, server at the office of the AG of Pakistan Revenues (AGPR)
Accountant General of Pakistan prescribed NAM and cash in Islamabad, thereby creating a seamlessly integrated
basis IPSAS. The Constitution of Pakistan introduces the system capable of providing real-time information on
legislative framework for financial management in federal financial transactions taking place across the country at
and provincial governments. Articles 78 to 88 and 118 to national and sub-national levels (PIFRA). The FABS is
127 cover the financial procedure for federation and used to process the following: (a) monthly salary of more
provinces, respectively, Articles 169 to 171 include the than 2.5 million government employees at the federal,
functions and powers of the AG. The Pakistan (Audit and provincial, and district levels; (b) monthly pension of more
Accounts) Order 1973 states that the AG will be than 0.5 million government employees; (c) General
responsible for keeping the accounts of the federation and Provident Fund payments of government employees; (d)
each province. The Order was issued subsequent to Article thousands of payment claims of government departments
170 of the Constitution, which indicates that “the accounts across the country on a daily basis; (e) monthly and annual
of the Federation and of the Provinces shall be kept in such accounts of federal, provincial, and district governments;
form and in accordance with such principles and methods and (f) budgets of federal and provincial governments.
as the Auditor-General may, with the approval of the The second phase of the PIFRA project, PIFRA-II, was
President prescribe” [1]. introduced at the district and sub district levels, which
In 1996, the GOP, with support from the World Bank, strengthens the financial accountability cycle. The aim of
initiated PIFRA to institute financial reforms in public the GOP to improve public financial management,
sector accounting and auditing. The main objective of the accountability, and transparency is supported by the project,
project was to adopt and implement international and the ability of public sector managers to utilize credible
accounting and auditing standards for the improvement and financial information for effective and informed decision
modernization of the public accounting practice and making is enhanced. The use of public monies will be
financial reporting. Before the PIFRA, the budgetary effectively monitored, and the national as well as
50 Analysis of Accounting Reforms in the Public Sector of Pakistan and Adoption of Cash Basis IPSAS

international credibility of the financial statements and Accounting Policies

assurance processes of national as well as provincial Accounting policies are rules and procedures applied by
governments will be improved [2]. an entity to prepare its financial statements. The accounting
Adoption of Cash Basis IPSAS: policies are not disclosed in detail on the face of the
financial statements but on the manual of accounting policy
Cash basis IPSAS issued to encourage those entities and procedure used for the financial transitions of the GOP,
who only record and maintain cash transactions, this which is publicly available on the website. This manual
standard enhance the accountability in cash receipt, cash shows the detailed financial setup of the GOP.
payment and cash balance of those entities which
compliance their GPFR, s with this standard. Cash basis Financial Statement
IPSAS consists of two parts: mandatory and
non-mandatory. The financial reports of every entity must Cash basis IPSAS standardizes the financial statements
comply with the mandatory standards and be prepared per comprised of the following:
cash basis IPSAS. These include the requirements of  Cash receipt and payment statement
presentation of financial statements on cash basis,  Identification of third party payment
disclosure of accounting policies with supporting notes,  Accounting policies and explanatory note
and presentation of budget information. The  Statement of the comparison of budget and actual
non-mandatory requirements of cash basis IPSAS identify amounts
additional accounting policies and guidelines for public Article 10 of the Pakistan Audit and Accounts Order
entities interested in migrating to accrual basis accounting 1973 requires the AG to prepare the financial statements of
in the future (Handbook reference). The basic objectives of the federal government and all provinces. The financial
the adoption of this standard are as follows: statements of the Federal GOP have been prepared per the
 Support the cash basis accounting system of public requirements of the NAM. The financial reporting manual
entities that maintain only the records of cash details the compliance of the government financial
receipt and payment. This standard prescribes a reporting process with cash basis IPSAS requirements. The
manner of presentation of financial financial statements of the Federal GOP satisfy all the
statements/annual reports. requirements of IPSAS. Cash receipts, payments, and
 Comply with the requirements and enhance the balances are reported on gross basis. Payments made by
accountability and transparency of cash payments third parties on behalf of an entity are disclosed separately
and receipts, support decision making and on the statement of cash receipt and payment and
legislation, and analyze financial performance in comparative budget statement.
comparison with previous record or other entities.
 Encourage public entities to migrate to accrual Reporting Entity:
basis accounting. This part involves the additional This part of cash basis IPSAS requires disclosure of
disclosure of non-cash items and cash flow reporting entity, which enable users to identify its nature
statement. and the legislative and institutional environments where it
Compliance with Cash Basis IPSAS: operates. The accounting entities in the GOP include
centralized accounting entities, self-accounting entities,
Financial statements comply with IPSAS only if they and exempt entities at federal and provincial government
fulfill all the requirements of each applicable standard. levels. The federal government and government of four
The compliance of the financial reports of the GOP with provinces (Sindh, Baluchistan, Punjab, and KPK) are
international standards is verified through the following separate accounting and reporting entities. The financial
analyses. statements of the GOP cover all centralized and
Cash Basis self-accounting entities, except the Pakistan Railway.
Cash basis IPSAS apply to entities that prepare and Notes to the Financial Statements:
present financial statements using the cash basis of
accounting, that it, the recognition of transaction when the This part of financial statement provide information
cash is received and paid. The accounting policy and about the basis of preparation of financial statement, it
procedure manual of the NAM explains the accounting contain all the necessary information which is no presented
basis of the GOP, which is involves double entry on the face of financial statement, such as accounting
accounting, modified cash basis, commitment accounting, policies and other events selected and applied for
and assets and liability management. Notes to the financial significance transaction, shows the fair presentation of cash
statement disclose that the financial reports of the GOP receipts, cash payments, and cash balance. Information
have been prepared in accordance with cash basis relating to preparation and accounting policies are
accounting. incorporated in the financial reports of the Federal GOP.
 Universal Journal of Accounting and Finance 6(2): 47-53, 2018 51

General Considerations: cash and cash equivalents of an entity during the period,
The following general considerations are the mandatory classifies the inflow and outflow of cash during the period
requirements of cash basis IPSAS for presentation of from operating, investing, and financing activities and
financial statements: assists entities in predicting cash position and the ability to
generate cash in the future. IPSAS-2 cash flow statement
 Reporting date was issued in May 2000, and 24 amendments were made
 Timeline from year 2000 to January of 2015.
 Authorization date The GOP adopted IPSAS -2 formats of cash flow
 Comparative information statements in the financial statements of 2008–2009,
 Identification of financial statements reports the cash flow in three separate disclosures: cash
 External assistance from operating, investing, and financing activities.
 Consistency Regarding the compliance with IPSAS 2 cash flow
 Authorization Date statement, the format has been adopted but the disclosures
The budgetary and accounting period in Pakistan is fixed required by IPSAS-2 cash flow statement are not included,
and runs from July 01 to June 30 of the following year. Per such as reconciliation of net cash flow from operating
financial reporting manual, the financial statements must activities. IPSAS encourage disclosure of reconciliation of
be issued before October 30 each year (within three months surplus or deficit to operating cash flow in the notes to the
of the reporting cycle) and prepared by the CG. The AG of financial statements. No breakdown for the receipt of
Pakistan is responsible for issuing a financial report to all non-tax revenue and other receipts, operational payments,
stakeholders before October 30. The preparation of transfers and expenditure on physical assets, civil work and
financial accounts in the government accounting system is others are disclosed in the notes of the financial statements.
consistent, and comparative information is disclosed for all
numeric information. The financial reports of the Federal
GOP satisfy the requirement of clearly identifying all 5. Discussion
financial statement information and distinguishing them
This study discusses the public sector accounting system
from other information in the same published document.
reforms in Pakistan and adoption of cash basis IPSAS for
The external assistance received by the GOP during the
financial reporting. The PIFRA reforms became effective
period is disclosed in the receipt and payment statement in
components of financial management in Pakistan’s public
the head of development grants and the provider of external
sector. PIFRA was implemented over a period of more than
assistance is identified in the notes portion. However, the
five years to build the channel of communication at the
other details of external assistance as required by the
local, regional, and national levels. The PIFRA is equipped
standard are not disclosed on the financial reports.
with all the elements necessary for good financial
Non-Mandatory Requirements of Cash Basis IPSAS: management. This study shows that the financial reports of
GOP broadly comply with cash basis IPSAS and IPSAS-2
This part of cash basis IPSAS identifies additional cash flow management. The current accounting reforms in
accounting policies and disclosure that encourages the Pakistan provide evidence of the modernized accounting
entity to enhance financial accountability and transparency system in public sector of Pakistan and its flexibility in
and add more detail. The financial statements of the GOP absorbing the changes and do modification per
have been prepared under cash basis of accounting. The international standards. The NAM with a new chart of
statement of assets and liability has been presented, which accounts supports the dual accounting system. The GOP
is not mandatory but encourages disclosure per currently maintains accounts and financial reports using
international standards. Going concern assessment shows the modified cash basis system. The PIFRA reforms can
the ability of the entity to continue as a going concern. record the transactions and maintain accounts on full
Pakistan is a sovereign state to which generally accepted accrual basis and lean toward modified accrual than
accounting principles (GAAP) are applied to prepare modified cash basis. Accrual basis accounting systems
financial statements, thereby satisfying the requirement. enhance accountability and transparency in government
The financial reports of the Federal GOP do not provide sector and monitor debts and liabilities. The current cash
any disclosure about extraordinary items, agency basis of accounting system does not provide appropriate
transactions, disclosure in notes to accounts, incentives for decision makers because only cash
hyperinflationary economy, assistance from external transactions are reported. Non-cash transactions are
agencies and NGOs, and treatment of flows from ignored although they contribute to the economy and give
acquisition/disposal. Some of the above requirements, such direction to government to act now and into the future to
as hyperinflationary economy, are not applied in Pakistan. address long-term sustainability and ensure the welfare of
future generations. A great disadvantage of cash basis
IPSAS 2- Cash Flow Statement accounting is that it does not recognize assets, debtors, and
Cash flow statement shows the chronological changes in liabilities. The hidden debts of government are not reported
52 Analysis of Accounting Reforms in the Public Sector of Pakistan and Adoption of Cash Basis IPSAS

and a realistic view of government financial position is not

presented. The PIFRA reforms are the most encouraging
incentives to move to accrual accounting. Transactions are
recorded in real time using the new chart of accounts per REFERENCES
dual concept of GAAP in SAP ERP system and reports can
be generated at any stage in the process. [1] N. Assembly, “The Constitution of the Islamic Republic of
Under cash basis accounting, the financial results for the Pakistan,” 2012.
period is measured as the difference between cash received [2] I. Standards, “Pakistan Public Sector Accounting and
and cash disbursed. The sources and uses of cash are Auditing: A Comparison to International Standards,” no.
provided. Per the PIFRA reforms, the financial activities of May, 2007.
the GOP are not limited to cash accounting and the detailed [3] A. Economic and F. Review, “Accounting from a Religious
chart of accounts contains separate codes for all financial Perspective: A Case of the Central Government Accounting
statement elements (assets, liabilities, expenses, revenue, in Islamic Republic of Imtiaz Badshah Frode Mellemvik
and equity). Konstantin Timoshenko,” vol. 3, no. 2, pp. 243–258, 2013.
[4] Y. A. Zia and M. Z. Khan, “Drivers of Public Sector
Reforms in Pakistan: A Comparison of NPM with
6. Conclusion and Recommendation Alternative Reform Drivers.”
This paper focuses on current accounting reforms in [5] “Improving public sector financial management in
Pakistan’s public sector that are implemented through the developing countries and emerging economies.”
PIPRA and the compliance of the Federal GOP’s financial [6] “No Title,” pp. 1–23.
reports with cash basis IPSAS. This study can be extended
in the future. This study concludes that the PIFRA reforms [7] M. Samuel and T. Ph, “Factors Influencing the Acceptance
are geared toward transformation to full accrual accounting of International Public Sector Accounting Standards in
Cameroon,” vol. 5, no. 2, pp. 71–83, 2016.
system. The implementation of the NAM with SAP was
well-received in the GOP accounting system. The PIFRA [8] I. Brusca, V. Montesinos, and D. S. L. Chow, “Legitimating
reforms satisfy all the requirements to transition to an International Public Sector Accounting Standards (IPSAS):
accrual accounting system and develop an integrated the case of Spain,” no. November 2014, pp. 37–41, 2013.
accounting system for all levels of the GOP. For better [9] N. Nagendrakumar, “The Development of Public Sector
financial management and fair financial position, we Accounting and Financial Reporting in Sri Lanka,” vol. XV,
recommend following the accrual basis of accounting and no. 2, pp. 70–88, 2015.
adopting IPSAS. Moreover, we encourage further research [10] M. Ifeoma, K. Nonyelum, A. John, P. Awheela, and U. Ali,
in the field of public sector accounting. “Sustainable National Economic Development in Nigeria:
The Relevance of International Public Sector Accounting
LIST OF ABBREVIATIONS AND ACRONYMS Standards (IPSASS),” vol. 3, pp. 88–98.

ADB Asian Developed Bank [11] “A Critique on Cash Basis of Accounting and Budget,” vol.
AG Auditor-General 2, no. 3, pp. 69–83, 2014.
AGPR Accountant General Pakistan Revenue [12] M. Kr, “Disclosure of Financial Information about the
CGA Controller General of Accounts General Government Sector by IPSAS,” pp. 485–495,
DAOs District accounts offices 2017.
ERP Enterprise Resource Planning
[13] S. Bellanca and J. Vandernoot, “Analysis of Belgian Public
FABS Financial Accounting and Budgeting System
Accounting and Its Compliance with International Public
GAAP Generally accepted accounting principles Sector Accounting Standards (IPSAS) 1, 6, and 22,” vol. 8,
GOP Government of Pakistan no. 9, pp. 122–133, 2013.
GPFRs General purpose financial reports
IMF International Monetary Fund [14] IFAC International Federation of Accountants and IFAC,
International Public Sector Accounting Standards Board
IPSAS International Public Sector Accounting Standards
Handbook of International Public Sector Accounting
KPK Khyber Pakhtunkhwa Pronouncements 2012 Edition, vol. II. 2015.
LDC's less developed countries
NAM new accounting model [15] James L. Chan “IPSAS and Government Accounting
NGOs Non-government organizations Reforms in Developing Countries:
NPM New Public Management [16] Bernardino Benito, Isabel Brusca and Vicente Montesinos
PIFRA Financial Reporting and Auditing “The harmonization of government financial information
SAFA South Asian Federation of Accountants systems:-the role of the IPSASs: International Review of
SAP System Applications and Products Administrative Sciences Vol. 73(2):293–317.
WAN wide area network
[17] THE NEW ACCOUNTING MODEL OF THE SWISS
WB World Bank CONFEDERATION “OECD JOURNAL 4 ON
 Universal Journal of Accounting and Finance 6(2): 47-53, 2018 53

BUDGETING – VOLUME 8 – No. 1 – ISSN 1608-7143. study on accrual-based accounting for governments and
public sector entities in SAARC countries, September.
[18] South Asian Federation of Accountants (SAFA). (2006). A

View publication stats