International Public Sector Accounting Standards (IPSASS) Application of Consolidated Financial Statements (CFS) In Africa Government Accounting Systems
- September 25, 2020
- Posted by: RSIS Team
- Categories: Accounting, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186
Zivanai Mazhambe
Post Doctoral Research Department, Bright Africa Consultancy Training
Abstract: Consolidated financial statements provide compounded single financial group General Purpose financial statements prepared by the parent economic entity, amalgamating other entity’s financial information intended for useful decision making by the user stakeholders. The purpose of this study is to analyse the technical application and complexities of IPSAS Consolidated financial statements in Africa Government accounting systems. The study methodology adopted is mixed research methodology administered through questionnaires and interviews on PAFA professionals in public practice across Africa, using statistics and content analysis for data analysis. The study findings revealed that consolidated financial statements for government, prepared and presented fairly with other financial reports are useful for decision making. The respondents also highlighted technical complexities in terms of applying the accounting standards and financial reporting elements recognition and measurement as rather subjective in the determination of control, variable benefits, existing power, benefits and the binding agreement.
Keywords: IPSAS, Consolidated financial statements, Government accounting, IPSAS challenges, PAFA, IPSASs Objectives, IPSASs Challenges
I. INTRODUCTION
Consolidated general purpose financial statements are prepared by the parent economic entity using prescribed conventions and accounting standards for the objective of providing useful financial information for decision making by the user stakeholders. The overriding objective for consolidated financial statements for IPSASs have been decoded from the International Financial Reporting Standard (IFRSs) benchmark with similarities of criteria whose peripheral and overall underpinning is control (IPSASB, 2013). The IFRS prescriptive criteria mainly focussed on the investor user as opposed to IPSASs multi-thronged criteria of multiple users of consolidated financial statements. The objective of this research is to analyse the application of IPSASs consolidated financial statements.
