International Public Sector Accounting Standards (IPSASS) Assessment of Public Entities “Going Concern” Assumption Concept in Africa

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

International Public Sector Accounting Standards (IPSASS) Assessment of Public Entities “Going Concern” Assumption Concept in Africa

Zivanai Mazhambe
Post Doctoral Research Department, Bright Africa Consultancy Training

Abstract: Legislation enacted by the elected representatives is the key control and guide for public sector entities, defining the constituent limits and oversight. Financial reporting under general acceptable accounting standards of IPSASs and the IFRSs, hold the precondition assumption of ‘going concern’ as fundamental requiring the assessment benchmarks and the determination be disclosed and justified accordingly. This study seeks to assess the IPSASs going concern assumption of IPSAS of financial reporting in public entities, as a prescribed underlying assumption. The methodology adopted for this study was mixed research methodology, through questionnaires and interviews of PAFA professionals across Africa selected randomly. The findings revealed that the IPSASs assessment and determination of its ‘going concern’ assumption when applied to public sector entities is difficult and complex. The findings further revealed that the ‘going concern’ assessment of sovereign governments political systems in Africa is technically complex in determination and further compounded by the periodic appointments of public policy and officials in terms of the constitutional provisions which renders disruptiveness the public administration, compromises service potential and delivery, thereby causing subjectivity in the assessment of the IPSASs going concern assumption.
Keywords: IPSASs, Going Concern, Government accounting, IPSAS challenges, PAFA, IPSASs financial reporting, IPSASs Challenges

I. INTRODUCTION
Financial reporting under general acceptable accounting standards of International Public Sector Accounting Standards (IPSASs) and the International Financial Reporting Standards including International Accounting Standards, hold the precondition assumption of ‘going concern’ as fundamental. Assessment benchmarks and precluding assessments used in the determination should always be disclosed and justified accordingly. Poor accounting standards and their ineffective application in member countries of the African Union have caused financial chaos and civil unrest (African Union, 2019). This study seeks to assess the IPSASs going concern assumption of IPSAS of financial reporting in public entities.

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