The application of IPSAS 17 by the Maltese government

Abstract

Purpose: The purpose of this dissertation is to identify the fundamental differences between IAS 16 and IPSAS 17, and to examine how the IPSAS project team adopted IPSAS 17 for the Government of Malta. The research also analyses IPSAS 17 guidelines and assess whether these guidelines are considered understandable, complete and effective by the intended users. Finally, this research analyses the major challenges in the implementation of IPSAS 17. Design: The objectives of the study were reached through both a qualitative and quantitative research approach. Primary data was collected through face-to-face interviews in a semistructured format with high ranking Government officials and members of the Public-Sector Committee. In addition to assess the guidelines 15 questionnaires were sent to the Ministries, four out of which were conducted in an interview style. Findings: The general policy behind the adoption of IPSAS 17 was to limit the accounting options where it was reasonable to do so. The overall impression about the effectiveness of IPSAS 17 as adopted by the Maltese Government is good. Nevertheless, there are still some areas which could be problematic to tackle. With regards to the guidelines they are considered quite useful and helpful to understand the requirements of IPSAS 17. Nonetheless, improvements still could be made to enhance the user-friendliness of these guidelines. Conclusions: The study concludes that once IPSAS 17 is introduced the Government of Malta will be taking a major step towards improved accountability and transparency with regards to capital assets. In addition, the related guidelines should serve as a tool for Government employees to deal with the accounting of PPE. Implications: It is anticipated that this study will become useful to the IPSAS project team to identify if any amendments should be made to IPSAS 17 and the guidelines to improve them.