The application of IPSAS 33 by the Maltese Government

Abstract

Purpose: This study focuses on the value of transitional exemptions granted to first-time adopters of accrual basis IPSAS. The overall aim of this study was to assess the viability of IPSAS 33 for a public sector entity that is implementing an accrual accounting system compliant with IPSAS. To achieve such an aim the requirements and recommendations for the preparation and presentation of annual financial statements by first-time adopters of accrual-basis IPSAS were examined. Additionally, the implications of IPSAS 33 for the transition process adopted by the Maltese Central Government were analysed. Design: A qualitative research methodology was employed, with the research tools including a documentary analysis and semi-structured interviews. The documentary analysis was utilised to examine what the provisions of IPSAS 33 require and recommend, whilst semi-structured interviews were used to acquire relevant data to analyse the implications of IPSAS 33 within the local context. Findings: The process of IPSAS adaptation and implementation is being held back by fear of IPSAS requirements when these are not known. Moreover, change management issues are further impeding any prospect of expediting the transition process. Within the context of accounting issues, IPSAS 33 presents provisions that might be of substantial assistance to the Government of Malta. Conclusion: A phased implementation of IPSAS can be carried out by the Government of Malta independent of any IPSAS provisions or by adhering to IPSAS 33. Depending on which route of transitioning is opted for, the current phase of the implementation process is considered differently. Given that the current phase of the transition can last for an extended period, the relevance of IPSAS 33 is, presently, debatable. It shall become clearer whether IPSAS 33 is viable the more progress is made regarding the adaption and implementation of other standards. Value: This dissertation could be of value to the IPSAS Project Board when the date of adoption is established and it is required to decide whether to opt for the exemptions of IPSAS 33 and the three-year transitioning period provided by it or to start preparing and presenting financial information fully compliant with the IPSAS framework.