The relevance of the IPSASB conceptual framework for Maltese government accounting reform

Abstract

Purpose: This study analyses the last four chapters of the IPSASB Conceptual Framework in relation to the IASB ones. The main aim is to get the opinion of Maltese experts with regards to these chapters and the completed framework, as well as assess the relevance of this Conceptual Framework for the Maltese government accounting reform from cash to accrual accounting. Design: Following the completion of an analysis of both frameworks, a qualitative study was carried out making use of semi-structured interviews. Such interviews were carried out with Maltese public sector practitioners and experts. Findings: From this study it emerged that the main differences between the IPSASB and the IASB Conceptual Framework were due to the fact that the former caters for the public sector whilst the latter is for the private sector. This study also found that Maltese experts in the public sector agree for the most part with the approach that the IPSASB has taken with regards to these chapters in the framework. Findings also show that accrual accounting is the way forward for Malta, since cash accounting fails to show the full picture. This study also found that out of all the different options available for the cash to accrual reform, IPSAS as adopted by the Maltese government was the best and most feasible option. Conclusions: This study concluded that although the IPSASB Conceptual Framework was adopted as is in Malta and is not being directly referred to when adapting the rest of the standards in Malta, it is still relevant as, after all, the individual IPSASs are all based on this framework. Value: This study aims to shed more light on the current government reform from cash to accrual accounting. Furthermore, this study puts forward recommendations in relation to the changeover which may help improve the process.